Agenda packet — Palo Alto City Council, August 7, 2023 (part 1 of 2)

CITY COUNCIL
Regular Meeting
Monday, August 07, 2023
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in Red
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

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

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

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

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM)

1. Neighbors Abroad and Chris Cummings Presentation on Recent Activities with Palo Alto Sister City Tsuchiura, Japan
CLOSED SESSION (5:50 ‐ 7:35 PM)

2. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Tori Anthony, and Molly Stump) Employee 1 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM)

1. Neighbors Abroad and Chris Cummings Presentation on Recent Activities with Palo Alto Sister City Tsuchiura, Japan
CLOSED SESSION (5:50 ‐ 7:35 PM)

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

3. CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Claims pursuant to Public Contract Code 9204 related to construction of the Public Safety Building from Swinerton Builders; Pacific Structures, Inc.; Commercial Controls Corporation; Walters & Wolf; WSA Compliance, LLC; Helix Construction Company; Broadway Mechanical Contractors, Inc. (BMC); Sandis; and Northern Services, Inc. Authority: Government Code Section 54956.9(d)(3) Title Updated
STUDY SESSION (7:35 ‐ 8:35 PM)

4. 4075 El Camino Real (23PLN‐00391): Request for Prescreening of a Proposal to Modify an Existing Planned Community (PC) to Allow 14 Additional Senior Convalescent Units, Including an Increase in the FAR, Lot Coverage, Density, and Height Within the Daylight Plane. Environmental Assessment: Not a Project. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review.

AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:35 ‐ 8:50 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.

CONSENT CALENDAR (8:50 ‐ 8:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

5. Approval of Minutes from June 12, 2023 and June 19, 2023 Meetings 6PUBLICHEARINGAdifOdiAdiSi968010(P)d
2 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:35 ‐ 8:50 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.

CONSENT CALENDAR (8:50 ‐ 8:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

5. Approval of Minutes from June 12, 2023 and June 19, 2023 Meetings

6. PUBLIC HEARING: Adoption of an Ordinance Amending Section 9.68.010 (Purpose) and Section 9.68.040 (Just Cause Evictions Required) in Palo Alto Municipal Code Chapter

9.68, Rental Housing Stabilization, to Reduce the Minimum Time Period Required for Renters to Qualify for Just Cause Eviction Protections. CEQA status—exempt under CEQA Guidelines Section 15061(b)(3).

7. Adoption of a Resolution Establishing Fiscal Year 2024 Property Tax Levy for General Obligation Bonds (Measure N Libraries)

8. Approval of Contract Number C23187501 With Palo Alto Housing Corp (PAHC) Housing Services, LLC for a Not‐to Exceed Amount of $356,556 to Provide Administration and Consulting Services for the City’s Below Market Rate Housing Program for a Term of Two‐years through June 2025 and Approve an FY 2024 Budget Amendment in the Residential Housing In‐Lieu Fund. CEQA Action: Agreements are not subject to CEQA.

9. Approve Amendment No. 1 to Contract C21181034 with Rincon Consultants, Inc. for the Continued Work on the Housing Element Update, and Approval of a FY 2024 Budget Amendment in the General Fund for the Reappropriation of funds from FY 2023 to FY 2024. Environmental Review: Agreements are not subject to CEQA.

10. Approval and Authorization of the City Manager to Execute a Contract with Allied Universal Technology Services (AUTS) (C24187696) in an Amount Not‐to‐Exceed $778,275 over 5 years and one month period ending June 30, 2028 to provide Intrusion Detection System (IDS) monitoring and notification services. CEQA status ‐ not a project. Supplemental Report added

11. Direction to Evaluate with Caltrain the Viaduct Alternative and Defer Review of the Trench Alternative at the Meadow Drive and Charleston Road Crossing as Recommended by the Rail Committee; CEQA status – categorically exempt per Regulation 15262.

12. Approval of FY 2024 Budget Amendment in the Residential Housing In‐Lieu Fund for the Reappropriation of $3.0 million from FY 2023 to FY 2024 for 231 Grant Avenue Loan Agreement; CEQA – Not a Project

13. SECOND READING: Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas‐Powered Leaf Blower Ban.

Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). (FIRST READING: June 19, 2023 PASSED 7‐0)

14. Approval of a General Services Contract with All City Management Services in an Amount not to Exceed $3,920,865 Over a Five Year Term, for Crossing Guard Services; and Approval of a FY 2024 Budget Amendment in the General Fund (2/3 vote required); CEQA status ‐ not a project.
3 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection ppp$
Agreement; CEQA – Not a Project

Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). (FIRST READING: June 19, 2023 PASSED 7‐0)

CITY MANAGER COMMENTS (8:55 ‐ 9:10 PM)
BREAK
ACTION ITEMS (Item 15: 9:10 ‐ 9:30 PM, Item 16: 9:30 ‐ 10:30 PM, Item 17: 10:30 ‐ 11:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

15. PUBLIC HEARING: Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report

16. Approval of Castilleja School's Transportation Demand Management Plan Document for a Previously Approved Redevelopment Project at 1310 Bryant Street. Environmental Analysis: The City Council Previously Certified a Final Environmental Impact Report for this Project.

17. Designation of Voting Delegate and Alternate(s) for the League of California Cities Annual 2023 Conference, to be held September 20‐22, 2023 in Sacramento, CA COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s).

ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

18. Investment Activity Report for the Fourth Quarter, Fiscal Year 2023 OTHER INFORMATION
Standing Committee Meetings
Policy & Services Committee Meeting August 8, 2023
Public Comment Letters
Schedule of Meetings
4 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection

10. Supplemental Report – Amendment to Agenda Item 10 on the consent calendar for the City Council Meeting on August 7, 2023 regarding Approval and Authorization of the City Manager to Execute a Contract with Allied Universal Technology Services (AUTS) for Intrusion Detection System (IDS) monitoring and notification services. CEQA status ‐ not a project.

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 5 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection Intrusion Detection System (IDS) monitoring and notification services. CEQA status ‐ not a project.

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.

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.
6 Regular Meeting August 07, 2023
Materials submitted to the Board after distribution of the agenda packet are available for public inspection City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Planning and Development Services
Meeting Date: August 7, 2023
Report #:2306-1664
TITLE
4075 El Camino Real (23PLN-00391): Request for Prescreening of a Proposal to Modify an Existing Planned Community (PC) to Allow 14 Additional Senior Convalescent Units, Including an Increase in the FAR, Lot Coverage, Density, and Height Within the Daylight Plane. Environmental Assessment: Not a Project. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review.

RECOMMENDATION
Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to add 14 additional units to 4075 El Camino Way (Palo Alto Commons). Comments provided during the prescreening process are not binding on the City nor the applicant.

EXECUTIVE SUMMARY
This prescreening is a request by the applicant to amend the existing Planned Community (PC) zone by creating a new PC with revised development standards to accommodate the proposal. The project site consists of two Senior Living communities, Avant providing 44 Independent Living units and approved in 2011 (PC 5116), and Palo Alto Commons, providing 121 Assisted Convalescent units and approved in 1987 (PC 3775). The existing Palo Alto Commons building is three stories tall and tapers down to two and one stories closest to the adjacent single-family (R-1) neighborhood.

This project proposes adding 14 additional convalescent units to Palo Alto Commons by building on top of the existing footprint, adding second and in some locations third stories to the “step backs”, and a two-story single unit-sized ground floor addition. The total height of the building would not increase from the existing, however, it would protrude into the daylight plane.

The project would require a formal rezoning application consistent with Palo Alto Municipal Code (PAMC), Zoning Regulations, Chapter 18.38 to allow for a Development Plan with encroachment into the R-1 daylight plane and an increase in lot coverage, FAR, and density. These convalescent units are not considered housing units towards the Regional Housing Needs Assessment (RHNA) allocation, but do provide an important service to the community.

BACKGROUND
Project Description
A location map of the proposed site is included in Attachment A. The preliminary schematic drawings, included in Attachment D, are conceptual, as is appropriate at this stage of project consideration. As shown in these schematic drawings, the applicant is proposing to add a 300 sf ground floor addition with Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 1 Packet Pg. 7 of 285
a height of two stories, increasing the height in one location from one story to two stories, increasing the height in three locations from one story to three stories, and increasing the height in five locations from two stories to three stories. These parts of the building currently modulation the height next to single-story residences and keep the building outside of the daylight plane. The proposed additions will encroach into the daylight plane by approximately 6-12 ft depending on the location. No additional parking spaces are proposed for the 14 units.

Surrounding Uses
Adjacent zoning and uses include The Avant Independent Living facility on the same parcel, and multifamily residential (RM-20) to the (approximate) west, single-family (R-1) residential to the north, and the Goodwill store (CN) to the east. Across El Camino Way and El Camino Real to the southwest includes other multi-family and commercial uses. Heights in the area range from 1-3 stories and include a variety of architectural styles.

ANALYSIS
Staff will prepare a thorough analysis of the Zoning and Comprehensive Plan compliance upon submittal of a formal application, if filed. A review of the conceptual plans, however, highlights key policy considerations associated with the applicant’s request.

Comprehensive Plan Compliance
The Comprehensive Plan designation includes both Multiple-Family Residential, for a portion of the site adjacent to single-family, and Neighborhood Commercial for the portion central to the site and towards El Camino Way.

Multiple-Family Residential is described as: The permitted number of housing units will vary by area, depending on existing land use, proximity to major streets and public transit, distance to shopping and environmental problems. Net densities will range from 8 to 40 units and 8 to 90 persons per acre.

Density should be on the lower end of the scale next to single-family residential areas. Densities higher than what is permitted may be allowed where measurable community benefits will be derived, services and facilities are available, and the net effect will be consistent with the Comprehensive Plan.

Population densities will range up to 2.25 persons per unit by 2030.

Neighborhood Commercial is described as: Includes shopping centers with off-street parking or a cluster of street-front stores that serve the immediate neighborhood. Examples include Charleston Center, Edgewood Center and Midtown. Typical uses include supermarkets, bakeries, drugstores, variety stores, barber shops, restaurants, self service laundries, dry cleaners and hardware stores. In locations along El Camino Real and Alma Street, residential and mixed use projects may also locate in this category. Nonresidential FARs will range up to 0.4. Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher density multi-family housing may be allowed in specific locations.

As no changes to land use are proposed, this project would not substantially deviate from the existing degree of conformance with the Comprehensive Plan Land Use Designations.

This project would support the following policies:
 Policy L-1.3 Infill development in the urban service area should be compatible with its surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 2 Packet Pg. 8 of 285
 Policy L-1.6 Encourage land uses that address the needs of the community and manage change and development to benefit the community
 Policy L-2.8 When considering infill redevelopment, work to minimize displacement of existing residents.
 Policy L-2.9 Facilitate reuse of existing buildings
The proposed project may be in conflict with these policies:
 Policy L-6.8 Support existing regulations that preserve exposure to natural light for single-family residences.

Zoning Compliance – Planned Community
The proposed changes would need to be considered as new development standards under the Planned Community.
 The building setbacks would not need to be changed
 The maximum building height would not need to be changed  The density and provided units would need to increase by 14 units  The daylight plane could be adjusted to allow the proposed encroachments adjacent to singlefamily uses  The parking ratio would effectively need to be reduced, as no additional spaces are being proposed for the new units.

Multi-Modal Access & Parking
The project is located close to high-frequency transit, including the Valley Transit Authority 22 bus line (El Camino and El Camino Way stop) but not close to any of the CalTrain stations. This project has not yet been analyzed for consistency with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). This analysis would be conducted as a part of any formal application and reviewed by the Office of Transportation. No infrastructure or right of way improvements are anticipated with this project.

No new parking spaces are being proposed with this project. Typically 14 new convalescent units would require one (1) space per 2.5 beds, or six (6) new parking spaces but the existing parking included extra spaces and the proposed beds are still in compliance with the Zoning Code requirements.

POLICY IMPLICATIONS
Pre-screenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Therefore, informal comments from Councilmembers would not impact policy. That said, there is interest among other builders and property owners to learn of the Council’s initial reaction to the subject request, which may influence the filing of future prescreening requests.

Zoning Code Section 18.38 for Planned Communities (PC) requires a public benefit. In 2020, Council determined that future PC (aka PHZ) projects must meet two initial qualifying criteria: 1) provide 20% of the total units as affordable housing selected from a prescribed menu of options, and 2) provide housing units that meet or exceed the demand generated by any net new jobs. In this case, the project is not proposing any particular level of affordability, and the expansion may also create new jobs. Also, given Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 3 Packet Pg. 9 of 285
the lack of individual cooking facilities, these new convalescent units cannot be counted towards the Regional Housing Needs Allocation (RHNA).

Although it does not meet the PHZ criteria Council set forth, Council should note this project is unique in that: 1) it is a PC amendment to an existing PC zone, and 2) it will house seniors who are the fastest growing homeless population according to the State’s Homeless Data Integration System.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on July 25, which is 13 days in advance of the meeting. Postcard mailing occurred on July 28 which is 10 days in advance of the meeting.

As of the writing of this report, public comments were received from one of the adjacent single-family neighbors. The emails are included in Attachment E. Primary concerns include privacy impacts and shadows associated with a proposed taller building. Should the project move forward, staff will further review these issues and can require a shadow study.

ENVIRONMENTAL REVIEW
The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.

NEXT STEPS
Following the prescreening review, the applicant will consider Council’s comments and determine how they want to proceed. Any formal application to rezone the property to PHZ would first be heard by the Planning and Transportation Commission (PTC) and Architectural Review Board, before Council makes a final decision.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Zoning Comparison Table
Attachment C: Applicant's Project Description
Attachment D: Project Plans
Attachment E: Public Comments
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 4 Packet Pg. 10 of 285
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The Barclay Apartments
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4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.7'

11.8'

63.6'
848.4'
163.2'
223.7'
150.5'

4.9' 32.5'

40.0'

17.1'

63.8'

11.8'

63.6'
848.4'
163.2'
223.7'
150.4'

4.9' 32.5'

40.0'

17.1'

63.9'

11.8'

63.6'
848.4'
163.2'
223.7'
150.4'

4.9' 32.5'

40.0'

17.1'

63.8'

11.8'

63.6'
848.4'
163.2'
223.7'
150.4'

4.9' 32.5'

40.0'
220.0'
269.1'
220.4'
268.9'
220.0'
269.1'
220.4'
268.9'
220.0'
269.1'
220.4'
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220.0'
269.1'
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269.1'
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269.1'
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269.1'
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220.0'
269.1'
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269.1'
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268.9'
220.0'
269.1'
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220.0'
269.1'
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268.9'
105.0'

66.3'

66.3'
105.0'

66.2'
105.0'

66.3'
105.0'

66.2'
105.0'
0 55.7'

92.3'

39.3'

30.7'
117.4'
117.5'

54.0'
117.4'

54.0'

17.5'

54.0'
117.4'

53.0'
117.1'

53.0'
117.2'

55.0'
220.0'
269.1'
220.4'
268.9'
220.0'
269.1'
220.4'
268.9'
220.0'
269.1'
220.4'
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220.0'
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269.1'
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269.1'
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269.1'
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269.1'
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269.1'
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268.9'

53.0'
117.0'

53.0'
117.1'

56.8'
109.5'

24.9'

33.5'
117.0'
108.3'
125.7'

42.1'
109.5'
141.1'

65.0'

75.0'
125.7'
43 0. '
105.2'

30.0'
105.1'

30.0'

7.41'1.1'

12.6' 15.9'

46.6' 37.7'

48.6'
105.1'
105.2'

30.0'
105.3'

30.0'
105.3'
0 105.3'

40.0'

81.7'

54.0'

83.0'

15.9' 12.6' 11.1' 9.4' 30.0'

44.0'

83.0'

44.0'

83.0'

38.0'

83.0'

38.0'

83.0'

44.0'

83.0'

3.0'
4 0'
105.0'

13.0'

35.0'

8.1 9
' .2'

45.0'
16 10.0' .9'

16.7'

77.0'

23.0' 11.4' 14.9'

96.5'

48.0'
105.0'

78.0'

26.0'

59.5'

14.9'

31.0'

49.0' 19.0'

15.0'

43.0'

15.0 1
'

9.0'

49.0'

24.0'

64.0'

24.0'

72.0'

24.0'

72.0'

24.0'

72.0'

13.0'

10.0'

5.0'

64.0'

30.0'
105.0'

52.0' 11.9'

45.0' 9 2. ' 8.1'

35.1'

17.6'

83.0'

44.0'

83.0'

44.0'

83.0'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'
146.0'

32.4'

53.9'
134.7' 7.3'.7' 5.5' 35.9' 37.9'
150.9 16
78 120

20.2 58.3' 1.8'

99.5'

60.0'
100.0'

40.0'
100.0'

39.5'
100.0'
208.9'
150.4'
449

91.0 161.1' 6.0' 44.4'
146.0'

54.1'
171.8'

50.3'
161.1'

40.0' 13.0'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'

11.9'
209.1'
133.0' 18.0'

3.0'
158.9' 25.7'

16.4'

25.0'
134.7'

43.2' 2.9'
183.1'

16.0'
150.3'
263.3'

72.1'
225.2'
138.1'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'

40.0'
115.0'

40.0'
115.0'
1 62.5'
130.0'

95.8' 4.2'
131.5'

27.8' 72.3'
131.5'

62.2'
147.9'

64.0'
381.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
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66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
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66.3'
12 381.5'
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115.0'

40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
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66.3'
12 381.5'
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40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
381.4'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'
180.0'
124.7' 9.4' 80.7'
131.0' 38.7'
151.6'
130.5'

54.3'
5 151.6'

0.0'
120.0'

65.0'
120.0'

65.0'
150.4'
208.8'
150.0'
208.8'
157.4'
138.1'
150.8'
170.4'
107.3'
188.8'
117.8' 31.4'

46.0' 110.6'

20.0'

30.0'
120.0'

5.0' 27.1'
129.8' .5' .2'
.1'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

99.4'
129.8'
135.1' 9.4' 58.6'

30.7' 24.7'
118.5'
188.8'

50.0'
182.9'

50.0'
183.0'

50.0'

15.0'
120.8
7 '

6.0'
161.2'

90.9'
282.0'

76.0'
120.8'

44.5'

87.0'

44.5'

87.0'

46.5'

87.0'

46.5'

87.0'

45.5'

87.0'

45.5'

87.0'

45.5'

87.0'

45.5'

87.0'
100.0'

87.0'

50.0'
183.0'

70.0'
178.0'

70.0'
178.0'
177.9'

46.5'
178.0'

46.5'

50.0'
178.0'

50.0'
178.0'
100.0'

60.0'
100.0'

60.0'
120.0'

50.0'
120.0'

50.0'

50.0'
120.0'

50.0'
120.0'
120.0'

50.0'
120.0'

50.0'

99.9'

50.9'
119.8'

30.9' 31.4'
109.3'

52.5'

89.2'

31.4'

32.4'
113.9'

50.0'
109.3'

50.3'
119.5'

50.0'
113.9' 6.0' 44.4'
119.6'

52.1'
119.5'

52.1'
119.7'

50.0'
119.6'

50.0'
119.8'

50.0'
119.7'

50.0'
120.0'

52.1'
120.0'

52.1'

50.1'
100.7'

50.0'
103.9'

50.0'
100.7'

50.0'
183.1'

50.0'
182.9'

50.0'
183.0'

50.0'
183.1'

50.0'
183.0'

50.0'
183.1'

50.0'
183.0'

1.6' 1.3' 30.7' 26.8'
100.0'

60.0'
105.0'
145.3'
160.0'
120.1'

70.0' 12.2' 73.1'

50.3'

53.5'
.8' .1'

30.7' 2.8'

50.0'

50.3'
140.6'

53.3'
141.3'

59.8'
139.5'

53.1'
140.0'

60.4'
139.5'

53.4'
139.5'

59.2' 12
335.3'
150.2'

42.4'
273.1'

35.5'
130.0'

75.0'

11.9' 50.5'
127.9'

55.9'
117.2'

61.2'
117.2'

62.0'
107.3'

31.7'
107.3'

54.0'

31.4'

45.1' 42.3'

70.3'
104.8'

66.8'
104.8'

70.1'

38.8' 46.0'

31.2'

47.8'

83.2'

82.1'

33.7'

45.4'

99.7'
131.2'

56.7'

14.5'

83.2'
151.9'

93.1 10

52.4'
110.1'

95.0'

59.6' 14.7'

95.0'

73.0'

99.9 99
'
.9'

89.4'

31.8' 57.7' 25.1'

45.6'

93.1'
2 18.7'
107.3'

82.5'
120.0'

60.0'
120.0'

60.0'
120.0'
139.9'
120.0'
150.0'
139.9'

50.0'
100.7'

50.0'
100.0'

50.0'
100.0'
100.7'

50.0'
100.7'

50.0'

97.0'

40.0'

31.4'

77.0'

60.0'

97.0'

75.0'

97.0'

75.0'

77.0' 31.4'

45.7'

97.0'

65.7'

10.5'
139.4'

80.2'

37.1'
131.2'
106.0'

58.7'
104.8'

74.9'

60.0'
110.0'

37.3'

80.2'
120.0

55.7' 57.7'

99.9'
231.2'

55.0'
120.0'

55.0'
120.0'
120.0'

55.0'
120.0'

91.5'

56.7'

91.6'

56.8'

91.6'

60.0'

71.7'

31.5'

40.0'

44.6'

31.4'

80.4'
120.0'

50.0'
120.0'

50.0'
100.0' 31.4'

30.9'
120.0'

50.9'

51.4'
203.0'

51.8'
203.0'

51.4'
203.0'

51.8'
203.0'

51.4'
203.0'

51.8'
203.0'

50.1'
103.9'

50.0'
107.1'

50.1'
107.1'

50.0'
110.3'

25.0' 25.0'
100.0'

50.0'
100.2'

50.0'
101.9'

31.4'

39.4'
109.2'

56.0'

91.5'

50.1'
110.3'

50.0'
113.5'

50.1'
113.5'

50.0'
116.7'

50.1'
101.9'

50.1'
102.0'

50.2'
102.0'

50.1'
103.8'

50.4'
103.8'

50.1'
107.3'
.7'
107.3'

50.1'
112.5'
112.5'

50.1'

50.0'
109.2'

50.2'
113.7'

50.0'
113.7'

50.2'
118.1'

50.0'
118.1'

50.2'
122.6'

50.0'
122.6'

12.0' 38.2'
126.5'
126.5'

50.1'
128.7
128

50.0' 50.0'
381.4'
220.0'
269.1'
220.4'
268.9'
142.6'
162.6'
177.4' 19.6' 18.8'
145.9'

67.8'

34.8'

67.9'

34.9'

67.7' 22.8'

67.8'

22.8' 22.8'

67.7'

22.8'

67.7'

22.7'

67.6'

22.8'

67.6'

34.8'

67.5'

34.8'

67.6' 22.8'

67.7'

22.8'

70.3'

31.1'

57.3'

20.4'

18.1' 22.7'

70.3' 22.8'

70.3'

22.8'

70.3' 22.8'

70.3'

22.8'

70.3' 22.8'

70.4'

22.8'

82.9'

24.7'

92.9'

24.7'

92.9'

22.8'
102.9'

13.9'
102.9'

21.8' 3.1'

16.0'

26.7'

99.0'
117.2' 3.1'

16.0'

26.7'

43.6'
255.8'

21.0'

9.51 '

4.3'

6.4'

16.6' .8'

15.7'

17.2' 1.7' 11.0' 3.8' 16.3' 20.5' 2.2' 6.5' 5.6' 1.3'
133.0' 20.4'

57.3'

20.0'
160.7' 20.0'

57.4' 20.4'
145.8' 4.0'2 2. '

8.1'

61.9' 16.7'

40.9'

69.5'

22.7'

70.4' 22.8'

70.4'

5.6' 1.3'

23.9'

70.4'

26.5'

31.6'

4.2'

31.9' 31.6'

62.2' 9.5'

14.3'

6.4'

16.6'

73.7'

4.2'

31.9'

73.7' .8'

15.7'

17.2' 1.7' 11.1' 3.8' 16.3' 20.5' 2.2'

6.5'

27.1'

70.4'

14.1'

20.4'

57.4'

22.7'

70.4' 22.7'

70.4'

22.7'

70.4' 22.8'

70.4'

22.7'

70.4' 22.7'

70.4'

22.8'

70.4' 22.7'

70.4'

22.7'

70.4' 22.8'

70.4'

27.1'

70.4' 18.0' 4.0' 2.2'

8.1'

61.9'

29.4'

69.5'

27.1'

81.4'

22.7'

81.4'

11.57 ' .9'

9.9'

82.9'
107.1' 30.3'

45.0'

8.5' 37.0' 10.0' 5.0'

64.0'

48.0'

8.0'

69.0'

38.7'

12.6'

81.2' 85.8'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
148.0'

66.3'
12 381.5'
347.0'
115.0'

40.0' 17.6' 19.4'
115.3'

97.8'

72.1'

47.6'
120.0'

50.0'
120.0'

98.6'

98.4 9
'

8.4'

98.5'

56.6' 63.0'

56.9' 63.0'
178.0'

50.0'
178.0'

98.4'

93.0'

98.5 9
'

8.5'

85.0'

98.5'

85.0'

60.0'
120.0'

60.0'

67.3'

60.5'
119.9'
120.0'

75.9' 30.4
1 56.0'
245.0'
245.0'

90.0'

57.2'

52.0' 11.0' 35.5' 24.0'

20.7' 7.9'

48.6'

48.6' 7 9. ' 20.7'

31.6'

20.5' 8.0'
8 0. '

53.2'

53.2' 20.5'

31.2'

20.0'

9.1'
9 1. '

58.0'

31.5' 31.4'

31.0'

20.3'

8.4'
8 4. '

59.7'

31.8'

31.2' 30.9' 31.9'

21.3'

21.0'

75.3'

7.8'

9.8'
9 8. '

55.6'

47.1'

47.1 3
'

0.9' 26.5'

16.1' 4 16.7' .8'
117.2'

30.0'

39.3'

92.2'

81.8'

89.0'

81.8' 36.5'

53.7'

42.4' 30.8'

30.4'

24.4'

24.4' 6.8'

6.8' 54.0'

54.0' 31.2'

5.6'

26.0'

54.9'

87.5'

54.5'

54.5' 27.9'

32.8' 31.1' 32.5'

24.8'

24.0'

7.2'

6.8'

18.8'

11.4' 5.2'

45.0' 8.5'

8.0'
10 54.4'
.0'

11.9'

68.9'

49.2'

47.7'
119.2'
107.1'
388.0'
392.6'
392.6'
100.0'
128.0' 24.5'
357.0'
179.5'

29.8'
179.3'
357.7'
519.6'
59 6. 0.8
326.1
21 5. '
4121
4131
4141
68 674 4168
4134
4102
4071
4061
618 4121
4133
4015
4020
598
3945
4025
4023
4021
575
573
569
4041
548
4181
4171
4146
4141
4161
4159
4157
4113
4111
4073
4101 4104 4117
4119
4127
4131
451 453 455
457 459 461
463 4079
4069
4065
4059
4082 4085
4060
4072
4076
4080
4084
4054
4040
4075
404
432
420
4125
4131
484
486
488
4139
4110
487
4104
477
47 303
315
270
290
301
310
4115
4107
3950
3940
3943
393
383
420
281
263
225 150
250
270
4039
4040
4043
4042
4055
4050
4056
4032
221
229
483
487
456
550
552
554
594 596
568
580
510 514 518
526
530
534
538
542
546
550
554
558
562
561
4109
4129
4102
502 506
3990
4128
3999
473
475
14 3998
4129
4112
4157
4044
4025
405
4106
4108
4060
522
4199
4070
4145
617
675
4161
4043 567
4054
4062
4080
4094 4091
407
4 5
06 4
1 055
4031
4040
4050
3981
460
478
4037
4045
4155
4153
4151
4143
491
4115
465 467 469 471
4109
4121
4119
4117
4115
4111
4020
4030
360
380 4085
4091
4073
370
4149
330
320
325
315
320
321
319
317
4103
350
401
363
343
323
380
360
340
320
300
310 3996
0 4022
390
4059
4065
4060
4071
4079 4080
4070
4068
301
303
4032
4042
4052
4062
4072
330
4021
4033
4 4075
4079
4081
4085
4093
4097
542
522
502
410
430
470
473
480
407
417
427
437
457
450
475
477
556
558
560 562
564 566 570
572
574 576 578 582
584
586 588
590
592
557
553
549
545
541
537
533
529
525
521
4101
4105
4117
4121
4125 4126
4110
4113
412
4 2
118
4114
577
4106
520
415 421 425
4100
4102
4135
4100
405
4062
4068
504
506
508
510
512
514
516
524
526
528
544
546
548
550

SECOND STREET

MACLANE

WILKIE WAY

WEST MEADOW DRIVE

VICTORIA PLACE

EL CAMINO WAY

EL CAMINO REAL

CAMINO CT
EL
CAMINO
WAY
WAY

WEST MEADOW DRIVE

JAMES ROAD
MACLA
(PRIVATE)
ATE)
RIVE

VISTA AVENUE

WISTERIA LANE

VILLA VISTA (PRIVATE)

PARK BOULEVARD

BARCLAY

DRISCOLL PLACE

VERDOSA DRIVE

JACOBS COURT (PRIVATE)

EL CAMINO REAL

EL CAMINO REAL
RM-20
PF
RM-20
RM-30
2930
RM-30
R-1
CN
PC-5116
PC-4511
RM-30
RM-20
RM-40
PC419
RM-20
R-1(70
R-2
Ventura
Community
Center
Tennis
Court

KEYS SCHOOL

MIDDLE CAMPUS
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Special Setback Frontages
Park
School
abc Building Roof Outline
Underlying Lot Line
abc Easement
abc Lot Dimensions
Zone Districts
abc Zone District Labels
City Jurisdictional Limits:

Palo Alto City Boundary
Tree
Current Features
0' 142'
Attachment A
Location Map
4075 El Camino Way

CITY OF PALO ALTO

I N C O R P O R A T E D

CAL I FORN I A
P a l o A l t o
T h e C i t y o f
A P R I L 1 6
1 8 9 4
The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ekallas, 2023-06-19 17:05:28
Location Map (Basic) (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 4
Attachment A - Location
Map
Item 4: Staff Report Pg. 5 Packet Pg. 11 of 285

ATTACHMENT B

ZONING COMPARISON TABLE
4075 El Camino Way, 22PLN-00391
Table 1: COMPARISON WITH CHAPTER 18.16 (CN DISTRICT) AND EXISTING PCs (5116, 3775) Exclusively Non-residential Development Standards
Regulation Required CN Existing (PC 5116 and
PC 3775)
Proposed
Site Area, width and depth None 110,642 sf
Irregularly shaped
110,642 sf
Irregularly shaped
Minimum Front Yard
(El Camino Way)
0-10 feet to create an
8-12 foot effective
sidewalk width (1), (2), (8)

14.5 ft 14.5 ft
Rear Yard 10 feet abutting
residential districts
10 ft 10 ft
Interior Side Yard None N/A left
8 ft other sides
N/A left
8 ft other sides
Street Side Yard
(W. Meadow Drive)
20 feet (2) 20 ft 20 ft
Build-to-lines 50% of frontage built
to setback on El
Camino Way
33% of side street built
to setback on W.

Meadow Drive (7)
Approximately 7.5 ft
(2.3%) built to front
setback
Approx. 7.5 ft plus 2
corners (8.2%) built to
street side setback
Approximately 7.5 ft
(2.3%) built to front
setback
Approx. 7.5 ft plus 2
corners (8.2%) built to
street side setback
Max. Site Coverage 50% (55,321 sf) 46.5% (51,478 sf) 46.8% (51,800 sf) Max. Building Height 25 ft and 2 stories 32 ft 5 in 32 ft 5 in New addition max
height 28 ft
Max. Floor Area Ratio (FAR) 0.5:1 (55,321 sf)
residential

0.4:1 (44,257 sf) nonresidential

0.9:1 (99,578 sf) total

0.43:1 (47,500 sf)
residential

0.76:1 (84,490 sf) nonresidential
(convalescent)

1.19:1 (131,984 sf) total

0.43:1 (47,500 sf)
residential

0.82:1 (90,377 sf)
non-residential
(convalescent)

1.25:1 (137,887 sf)
total
Daylight Plane for lot lines
abutting one or more
residential zone districts other
than an RM-40 or PC Zone
R-1 rear yard is 45
degrees at 16 ft (6)
Complies See plan set sheet
A4.3 for proposed
daylight plane
protrusions.
(1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard.
(2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) 25 foot driveway access permitted regardless of frontage, build-to requirement does not apply to CC district. (8) A 12 foot sidewalk width is required along El Camino Real frontage Item 4
Attachment B - Zoning
Comparison Table
Item 4: Staff Report Pg. 6 Packet Pg. 12 of 285
Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type Required Existing PC Proposed
Vehicle Parking 0.75 per Senior
Housing Unit (33
spaces)
1 per 2.5 beds
Convalescent Facilities
(55 spaces)
41 spaces Senior
Housing
55 spaces Convalescent
Facilities
41 spaces Senior
Housing
55 spaces
Convalescent Facilities
Complies
Bicycle Parking None per Senior
Housing Unit
1 per 25 beds
Convalescent Facilities
(2 LT)
None None
Loading Space 1 loading space for
10,000-99,999 sf.
2 required for 100,000-
199,999 sf.

Not specified on plans,
to be checked in formal
submittal
Not specified on
plans, to be checked
in formal submittal
Item 4
Attachment B - Zoning
Comparison Table
Item 4: Staff Report Pg. 7 Packet Pg. 13 of 285
Palo Alto Commons
The goal of this project is to add 14 new units in a similar style to the existing building. The additional units are proposed to be built mainly above the existing building with only a minor expansion to building footprint. The new units are to be of a similar size and layout to the existing units.

Item 4
Attachment C -
Applicant's Project
Description
Item 4: Staff Report Pg. 8 Packet Pg. 14 of 285
If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email [email protected]
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “4075 El Camino” and click the address link

3. Click on “Tell me more about 4075 El Camino Way”

4. On this project-specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/CurrentPlanning/Projects/4075-El-Camino-Way Item 4
Attachment D - Project
Plans
Item 4: Staff Report Pg. 9 Packet Pg. 15 of 285
From: seanshari
To: Foley, Emily
Subject: Re: 4075 El Camino Way - The Commons Expansion Date: Saturday, May 6, 2023 12:05:40 PM
Hello Emily,
We have had some time to review the plans and to imagine the changes when viewed from our backyard.

We are opposed to this development as planned.

The building will go from 1 to 3 stories 12 feet from our backyard fence. Plus, on top of the third story I already see HVAC equipment, which may be relocated above the third story nearest our fence. Also, I don’t see how they keep the trees alive after cutting them to accommodate the construction.

I remember a large tree in the courtyard that blocked our view of third story units. It is gone (died?) without any replacement planted.

In short, they want to expand to 3 stories on all of the existing footprint. If we understand the plans correctly, the North sides are adjacent to Wilkie Way residences. They appear to be large areas of square footage expansion.

The original development was approved “as-is” to minimize the negative impact on the Wilkie Way residents.

It is upsetting to imagine the changes to our quality of life, and our property values, should the expansion go through as planned.

Regards,
Sean and Shari McDaniel
> On Apr 25, 2023, at 7:22 PM, seanshari <[email protected]> wrote:
> Thanks for your efforts!
>
> Sean
>
>> On Apr 25, 2023, at 5:03 PM, Foley, Emily <[email protected]> wrote:
>>
>> Hi Sean,
>>
>> The direct webpage with the plans is now available: https://www.cityofpaloalto.org/News-Articles/Planning-andDevelopment-Services/4075-El-Camino-Way. In the future, this webpage will also be updated with public hearing information.
>>
>> Thanks,
>> Emily
>>
>>
>>
>> Emily Foley, AICP
>> Planner
>> Planning and Development Services Department
>> (650) 617-3125 | [email protected]
>> www.cityofpaloalto.org
>>
>>
>>
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 10 Packet Pg. 16 of 285
>> Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped
>>
>>
>> -----Original Message-----
>> From: Family <[email protected]>
>> Sent: Tuesday, April 25, 2023 2:32 PM
>> To: Foley, Emily <[email protected]>
>> Subject: 4075 El Camino Way - The Commons Expansion
>>
>> CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.
>> ________________________________
>>
>> Hello Emily,
>>
>> I used the QR code to access the Pending Projects section on the Planning and Development website. I don’t see the address listed for project plans. I infer that means that they have not submitted plans yet. Is that correct? Did I miss something?
>>
>> Thank you,
>> Sean McDaniel
>> 4060 Wilkie Way
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 11 Packet Pg. 17 of 285
From: Family
To: Foley, Emily
Subject: Re: Palo Alto Commons Expansion Objection
Date: Thursday, April 20, 2023 9:22:07 AM
Hi Emily,
Thank you for your thoughtful response.

Sean
On Apr 19, 2023, at 4:43 PM, Foley, Emily <[email protected]> wrote:

Hi Sean,
All “stepped” portions of the building, including the portion closest to you, will be increasing to a flat height of 3 stories.

I also wanted to take a moment to mention that this project is considered major and will have multiple public hearings. It will need recommendations for approval from the Architectural Review Board and Planning Commission before potentially receiving Council approval. Council may also have a study session to consider the application prior to ARB and PTC.

I’m happy to answer any additional questions about this, but my intent is to assure you that you and the neighbors will have many opportunities to provide comments.

Thanks,
Emily
<image002.png> Emily Foley, AICP
Planner
Planning and Development Services Department
(650) 617-3125 | [email protected]
www.cityofpaloalto.org
<image003.png>
Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 12 Packet Pg. 18 of 285
From: seanshari <[email protected]>
Sent: Wednesday, April 19, 2023 10:07 AM
To: Foley, Emily <[email protected]>
Subject: Re: Palo Alto Commons Expansion Objection
Good morning Emily,
We went by the front of the building last evening , and I have attached a photo of the sign. It’s pretty small. I wouldn’t have noticed it if you hadn’t mentioned it.

I’m sorry I wasn’t clearer on my question to you. We have a one floor portion of the building 10 or 12 feet away from our fence and backyard (4060 Wilkie Way). Would the Commons be adding an additional story there? Would they be adding two stories there?
I scanned the QR code and will explore information at that website too.

Thank you,
Sean McDaniel
On Apr 18, 2023, at 1:45 PM, Foley, Emily
<[email protected]> wrote:

Hi Sean,
Yes, please feel free to share my contact information with any interested parties. There is supposed to be a sign viewable from the street in front of the building, please let me know if this is no longer the case. The sign should have a description of the project and my contact information.

In terms of the exact setback, one of my comments from my initial review was that the setbacks were not dimensioned. However, I can confirm that there is no ground floor addition facing your side, some existing 1 story and 2 story parts of the building will become 3 story, no taller than the 3 story portions of the existing building.

Thanks,
Emily
<image001.png> Emily Foley, AICP
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 13 Packet Pg. 19 of 285
Planner
Planning and Development Services Department
(650) 617-3125 | [email protected]
www.cityofpaloalto.org
<image003.png>
Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped From: Family <[email protected]>
Sent: Tuesday, April 18, 2023 12:16 PM
To: Foley, Emily <[email protected]>
Subject: Re: Palo Alto Commons Expansion Objection
Hi Emily,
First of all, thank you for your response and creating a communication link.

We reside at 4060 Wilkie Way. If I understand the letter correctly, one of the additions will be 10 to 12” away from our back fence. Can you confirm that?
We would like to understand the scope of the project, so that we can give our input. We have reservations, but we also are open to fully understanding the impacts before passing judgement. Please advise us of resources available to us regarding this proposed expansion.

A little background: I grew up in our home. We purchased it from my mother in 1994. So, I have recollections of the original development of the Commons. The stepped rise of the building floors away from the fence line was part of the initial approval. They have been neighbors for about 30 years (?). Never have they reached out before this expansion plan.

I have spoken to my immediate neighbors and would like to share your contact information. May I text your email address to them? Thank you again for your outreach.

Regards,
Sean McDaniel
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 14 Packet Pg. 20 of 285
On Apr 17, 2023, at 4:12 PM, Foley, Emily
<[email protected]> wrote:

Hi Sean and Sharareh,
As Robin said, I am the Project Planner for the proposed expansion at Palo Alto Commons. I have received your
comments in the prior email and noted your concerns.

Please let me know if you have any further comments,
questions, or would like to discuss the project further. At this time, we have not yet established a schedule for public hearings, but this project will include public hearings throughout the entitlement process.

Thanks,
Emily
<image001.png> Emily Foley, AICP
Planner
Planning and Development Services
Department
(650) 617-3125
| [email protected]
www.cityofpaloalto.org
<image004.png>
Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning
Applications Mapped
From: Building <[email protected]>
Sent: Monday, April 17, 2023 8:45 AM
To: Family <[email protected]>
Cc: Foley, Emily <[email protected]>
Subject: RE: Palo Alto Commons Expansion Objection
Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 15 Packet Pg. 21 of 285
You don't often get email from [email protected]. Learn why this is important
Good morning Mr. & Mrs. McDaniel,
I am forwarding your email to Emily Foley, included.

Emily – please reply to the email below. Building does not need to be included in your correspondence.

Thank you,
<image002.png> Robin Ellner
Administrative Associate III
Planning and Development
Department
(650) 329-2603
| [email protected]
www.cityofpaloalto.org
<image006.png>
From: Family <[email protected]>
Sent: Wednesday, March 29, 2023 12:16 PM
To: Building <[email protected]>
Subject: Palo Alto Commons Expansion Objection
CAUTION: This email originated from outside of
the organization. Be cautious of opening
attachments and clicking on links.

Hello Planning Department,
Attached find a letter we received from the Executive
Director of the Palo Alto Commons.

We are writing because the letter indicates that Palo Alto Commons is working with the City of Palo Alto Planning Staff.

I would like have the contact information for the staff member with whom they are working. I believe the Palo Alto Commons (WellQuest Living) is a profit-based business, so I am skeptical of their communications about the impact of any expansion.

Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 16 Packet Pg. 22 of 285
In general, we object to additions or expansion to the
building just over the fence from our backyard. I disagree with their assertion that there will be no direct impact to our visual field. We also have other objections including but not limited to sound echoing off of the building, sounds from the building operation, home values, and privacy.

For now, we are not sure of our rights and want to establish a communication line outside of communicating with Palo Alto Commons.

Thank you for your time and consideration.

Sincerely,
Sean and Sharareh McDaniel
Freedom is Within You.

Item 4
Attachment E - Public
Comments
Item 4: Staff Report Pg. 17 Packet Pg. 23 of 285
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 7, 2023
Report #:2306-1686
TITLE
Approval of Minutes from June 12, 2023 and June 19, 2023 Meetings

RECOMMENDATION
That the minutes be reviewed and approved.

ATTACHMENTS
Attachment A: June 12, 2023 Draft Action Minutes
Attachment B: June 19, 2023 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun
Item 5
Item 5 Staff Report
Item 5: Staff Report Pg. 1 Packet Pg. 24 of 285

CITY COUNCIL

DRAFT ACTION MINUTES

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Special Meeting
June 12, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely:

Absent:

Closed Session

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

REMOVED FROM AGENDA
Special Orders of the Day

2. Proclamation honoring AACI (Asian Americans for Community Involvement)

NO ACTION
Study Session

3. Bi-Annual Discussion with the Independent Police Auditor

NO ACTION
Item 5
Attachment A - June 12,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 2 Packet Pg. 25 of 285

DRAFT ACTION MINUTES

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Sp. City Council Meeting
Draft Action Minutes: 06/12/2023
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 7-8.

Mayor Kou registered a no vote on Agenda Item Number 6.

MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Veenker to approve Agenda Item Numbers 4-12.

MOTION PASSED 4-5, 9-12: 7-0
MOTION PASSED 6: 6-1, Kou no
MOTION PASSED 7-8: 6-1, Tanaka no

4. Approval of Three Contract Amendments to Citywide Landscaping Services Contracts to extend the terms to September 30, 2023 and Increase Compensation as Follows: (1) Amendment No. 1 to Contract with BrightView Landscape Services, Inc. (C18170810A) with an increase of $305,606; (2) Amendment No. 1 to Contract with Gachina Landscape Management, Inc. (C18170810B) with an increase of $19,972; and (3) Amendment No. 2 to Contract with Grassroots Ecology (C18170810C) with an increase of $15,520; CEQA Status – Categorically Exempt 15301 and 15304.

5. Authorize Amendment No. 2 to Contract No. C20175537 with Kennedy Jenks Consultants, Inc. to extend the term of the contract for the Primary Outfall Line Project (WQ-19002) through December 31, 2027

6. Approve the Grade Separation Evaluation Criteria For Evaluating Alternatives Under Consideration for Grade Separation Projects. CEQA status – Categorically exempt under CEQA Guidelines section 15262

7. Adoption of Memorandum of Agreement with Utility Management and Professional Association of Palo Alto (UMPAPA) effective upon adoption through June 30, 2025, and Adopt revised Management and Professional salary schedule; CEQA Status - Not a project

8. Approval of a Purchase of Panasonic ToughBook Replacement Equipment for Police and Fire in the amount of $422,007 with Datec Incorporated Utilitizing an NCPA Cooperative Agreement; and Approval of a Purchase of Replacement CradlePoint Modems with DiscountCell, Incorporated for Police and Fire in the Amount of $168,801 Utilizing a NASPO Cooperative Agreement; and a Budget Amendment in the Information Technology Fund; CEQA Status—not a project

9. Approval of Office of City Auditor Electronic Payment Process and Controls Audit Report; CEQA Status – Not a Project
Item 5
Attachment A - June 12,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 3 Packet Pg. 26 of 285

DRAFT ACTION MINUTES

Page 3 of 5 ends

Sp. City Council Meeting
Draft Action Minutes: 06/12/2023

10. SECOND READING: Adoption of a Permanent Ordinance Amending Titles 18 and 21 to Implement State Housing Legislation from the 2021 Legislative Session, Including SB 9.

Environmental Analysis: Exempt from Environmental Analysis under CEQA Guidelines Section 15061(b)(3) and Government Code Sections 66411.7(n) and 65852.21(j). The Planning and Transportation Commission (PTC) has recommended Council adopt the ordinance. (FIRST READING: May 22, 2023 PASSED 7-0)

11. Approval of a Protocol for Council Member Co-Hosting of Neighborhood Town Hall Meetings

12. Approval of 2023-2024 Boards, Commissions and Commission Committees Work Plans:

A. Architectural Review Board
B. Historic Resources Board
C. Park and Recreation Commission
D. Planning and Transportation Commission
E. Public Art Commission
F. Stormwater Management Oversight Committee
G. Utilities Advisory Commission
Action Items

13. Direction on Operating Model for Palo Alto Animal Shelter, Which May Include:

Negotiating A New Agreement with Pets In Need; Moving to In-House Service Delivery; and/or Issuing a New Request For Proposals. CEQA Review – Not a Project MOTION: Council Member Lauing moved, seconded by Council Member Tanaka to direct staff to negotiate an agreement with Pets In Need (PIN) and bring back to Council in August with the following amendments and review:

1. No Trap/Neuter/Return (TNR) changes, through language such as: “Both parties will work together to develop a transparent and humane feral cat program reflective of municipal best practices and the impact on public health and wildlife, and that maintains the current practice where PIN does not release feral cats or cause them to be released.”

2. Review on the number of surgeries

3. Higher revenue opportunities
Item 5
Attachment A - June 12,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 4 Packet Pg. 27 of 285

DRAFT ACTION MINUTES

Page 4 of 5 ends

Sp. City Council Meeting
Draft Action Minutes: 06/12/2023

4. Consider a possible 3-year contract

5. Level of service and termination clause

6. Reporting and oversight

7. Spayed and neutered metrics
MOTION PASSED: 7-0

14. Approval of Homekey Lease Agreement with LifeMoves for use of 1237 San Antonio Road for a term of nine years and Revenue Agreement with Santa Clara County to enable the County to execute an operating agreement with LifeMoves for interim housing operations MOTION: Council Member Burt moved, seconded by Vice Mayor Stone to call the question (limit the debate).

MOTION PASSED: 6-1, Tanaka no
MOTION: Council Member Veenker moved, seconded by Council Member Lauing to:

A. Approve a Homekey Lease Agreement with LifeMoves for use of 1237 San Antonio Road for a term of nine years, and;
B. Approve a Revenue Agreement with Santa Clara County to enable the County to execute an operating agreement with LifeMoves for interim housing operations, and; C. Consideration of Tier 2 reinstatements deferred until June 19th when the Council is reviewing FY24 budget
MOTION PASSED: 6-1, Tanaka no
Adjournment: The meeting was adjourned at 12:10 A.M.

Item 5
Attachment A - June 12,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 5 Packet Pg. 28 of 285

DRAFT ACTION MINUTES

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Sp. City Council Meeting
Draft Action Minutes: 06/12/2023
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

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

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

Item 5
Attachment A - June 12,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 6 Packet Pg. 29 of 285

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 9 ends

Special Meeting
June 19, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely:

Absent:

Special Orders of the Day

1. Proclamation Honoring Juneteenth 2023
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 9, 17, 18, 27.

MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to approve Agenda Item Numbers 2-27.

MOTION PASSED 2-8, 10-16, 19-26: 7-0
MOTION PASSED 9, 17, 18, 27: 6-1, Tanaka no
Item 5
Attachment B - June 19,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 7 Packet Pg. 30 of 285

DRAFT ACTION MINUTES

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Sp. City Council Meeting
Draft Action Minutes: 06/19/2023

2. Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings

3. Approval of a Purchase Order with The Public Restroom Company in the Amount of $369,749 to Provide and Install a Modular Restroom Building at the Cubberley Community Center Fields for the Cubberley Field Restroom Capital Project (CB-17002); CEQA status – exempt under CEQA Guidelines Section 15303

4. Approval of Construction Contract Number C23187877 with Casey Construction, Inc. in the amount of $410,604, Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $41,060, and approval of a FY 2023 Budget Amendment in the Stormwater Management Fund for the Trash Capture Device Installation Project, Capital Improvement Program Project SD-22002; CEQA status – exempt under CEQA Guideline Section 15303.

5. Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water Shortage Assessment Report

6. Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2 San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQA Guidelines Section 15378(b)(5).

7. Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in the Amount of $4,199,222 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $419,922 for the Boulware Park Improvements project (PE-17005) and Green Stormwater Infrastructure project (SD22001); and Approval of FY 2023 Budget Amendments in the Park Development Impact Fee, Stormwater Management, and Capital Improvement Funds; CEQA status—exempt under CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement or reconstruction), 15303 (small structures), and 15311 (accessory structures)

8. Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street Rail Crossing and Direct Staff to Proceed with Design and Construction of the Project. CEQA status – categorically exempt (Regulation 15301).

9. Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE-15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772)

10. Approval of a one-year General Services contract with Stephen Ciari Plumbing and Heating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Services and Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status – Categorically Exempt 15301 and 15302
Item 5
Attachment B - June 19,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 8 Packet Pg. 31 of 285

DRAFT ACTION MINUTES

Page 3 of 9 ends

Sp. City Council Meeting
Draft Action Minutes: 06/19/2023

11. Approval of Amendment No. 1 with South Bay Regional Public Safety Training Consortium (Contract No S23187799) for Fire Academy and Other Training Services extended through 12/31/2023 and increasing the total compensation by $114,370 for a total contract amount not to exceed $199,000. CEQA status: not a project.

12. Approval of the Fiscal Year 2024 Investment Policy

13. City Council Appointment of the Castilleja Neighborhood Committee in Accordance With Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3).

14. Authorization for the City Manager to Negotiate and Execute a Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of the San Francisquito Creek

15. Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas-Powered Leaf Blower Ban. Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).

16. Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE-15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:

Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772)

17. Authorization to Execute Amendment to Legal Services Contract S22184420 with Rankin Stock Heaberlin Oneal to Increase Amount by $150,000 for Total Not-to-Exceed Amount of $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project

18. Approval of Contract with VOX Network Solutions (C23187554) to Procure Services to Upgrade the City’s Phone System and a Three-Year Support Term for a Total Amount NotTo-Exceed $504,107; CEQA Status—not a project

19. Approval and authorization to execute contract Amendment No. 2 with the OIR Group for an additional two-year period and an additional $105,000 for a new not-to-exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025.

20. Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301).

Item 5
Attachment B - June 19,
2023 Draft Action
Minutes
Item 5: Staff Report Pg. 9 Packet Pg. 32 of 285

DRAFT ACTION MINUTES

Page 4 of 9 ends

Sp. City Council Meeting
Draft Action Minutes: 06/19/2023

21. Approval of the 2023-2024 Human Relations Commission Work Plan; CEQA Status – Not a Project

22. Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project

23. Approval of Office of City Auditor Task Order Change - 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project

24. Approval of Office of City Auditor Task Order Change - 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project

25. Approval of Office of City Auditor Task Order Change - FY23-01 Citywide Risk Assessment & FY23-02 Annual Audit Plan; CEQA Status – Not a Project

26. SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five- Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7-0)

27. SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At-Fault and NoFault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6-1)
City Manager Comments
Ed Shikada, City Manager
Action Items

28. PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater Rates by Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7; 2) Approving the Fiscal Year 2024 Water Utility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates by Amending Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Amending Utility Rate Schedules EDF-1 and EDF-2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF-3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D-1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Item 5
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Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a)
Public Hearing opened at 7:11 P.M.

MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION: Council Member Burt moved, seconded by Council Member Lauing to adopt the following for the Wastewater Collection Utility, a Resolution:
a. Approving the Fiscal Year 2024 Wastewater Collection Financial Plan, including a 9% wastewater rate increase; and
b. Approving a transfer of up to $3.178 million from the Capital Improvement Projects Reserve to the Operations Reserve in FY 2023; and c. Approving a transfer of up to $342 thousand from the Rate Stabilization Reserve to the Operations Reserve in FY 2023; and
d. Increasing the Wastewater Collection Utility Rates via the Amendment of Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger)
MOTION PASSED: 6-1, Tanaka no
MOTION: Council Member Burt moved, seconded by Council Member Lauing to adopt the following for the Water Utility, a Resolution:
e. Approving the FY 2024 Water Utility Financial Plan, including a 2% water distribution rate increase; and
f. Approving a transfer of up to $3.746 million from the Capital Improvement Program (CIP) Reserve to the Operations Reserve in FY 2023; and g. Approving a transfer of up to $3.0 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2023; and
h. Increasing Water Utility Rates via the Amendment of Rate Schedules W-1 (General Residential Water service), W-2 (Water Service from Fire Hydrants), W3 (Fire Item 5
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Service Connections), W-4 (Residential Master-Metered and General NonResidential Water Service), and W-7 (Non-Residential Irrigation Water Service) MOTION PASSED: 7-0
MOTION: Mayor Kou moved, seconded by Council Member Burt to adopt the following:

1. A Resolution Amending Utility Rate Schedules EDF-1 and EDF-2 to increase Dark Fiber Rates 4.9 percent, and amending Schedule EDF-3 to reflect minor edits with no rate change;

2. A Resolution Amending Utility Rate Schedule D-1 increasing the Storm Water Management Fee by 4.9 percent consistent with the applicable Consumer Price Index.

MOTION PASSED: 7-0
Public Hearing closed at 7:22 P.M.

29. PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project
Public Hearing opened at 7:23 P.M.

MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to:

1. Adopt the Fiscal Year 2024 Budget Ordinance which includes the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule, as amended by actions outlined in this report; and

2. Accept the FY 2024-2028 Capital Improvement Plan as amended by the actions outlined in this report; and

3. Adopt the amended salary schedule for the Management, Professionals and Confidential Group; and

4. Refer staff follow-up on the below items recommended by the Finance Committee:
a. HSRAP Funding
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b. Eucalyptus Tree Removal Study
MOTION PASSED: 6-1, Tanaka no
Public Hearing closed at 8:35 P.M.

Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 33, 36, 38.

MOTION: Mayor Kou moved, seconded by Council Member Burt to approve Agenda Item Numbers 30-40.

MOTION PASSED 30-32, 34-35, 37, 39-40: 7-0
MOTION PASSED 33, 36, 38: 6-1, Tanaka no

30. Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024

31. Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not-To-Exceed Amount of $1,575,000 Over a Seven-Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA))

32. Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback-Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three-year term ending June 30, 2026; CEQA – Not a ProjectX

33. Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not-To-Exceed Amount of $1,161,550 Over a Five-Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not-To-Exceed Amount of $111,800 Over a Five-Year Term; CEQA Status – Not a Project

34. Approval of Professional Services Contract with Kittelson & Associates for a Not-to-Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update

35. Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project.

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36. Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not-to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two-years Through June 2025

37. Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12-Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project

38. Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project.

39. Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty-Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311).

40. Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not-toExceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services:

Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3).

Study Session

41. Tree Protection Ordinance Year One Implementation Update

NO ACTION
Action Items
AA1. Colleagues Memo: Approval of a “Friendship City” Program MOTION: Council Member Burt moved, seconded by Council Member Stone to refer the Colleagues Memo for Approval of a “Friendship City” Program to Policy and Services Committee for further discussion and to review the staffing impacts of this program.

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MOTION PASSED: 6-1, Tanaka no
Adjournment: The meeting was adjourned at 10:57 P.M.

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

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

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: August 7, 2023
Report #:2306-1620
TITLE
PUBLIC HEARING: Adoption of an Ordinance Amending Section 9.68.010 (Purpose) and Section

9.68.040 (Just Cause Evictions Required) in Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Reduce the Minimum Time Period Required for Renters to Qualify for Just Cause Eviction Protections. CEQA status—exempt under CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION
Staff recommends that the City Council adopt the attached Ordinance (Attachment A) amending Section 9.68.010 (Purpose) and Section 9.68.040 (Just Cause Evictions Required) in Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to reduce the minimum time period required for renters to qualify for just cause eviction protections.

BACKGROUND
On June 5, 2023, the City Council introduced Ordinance No. 55891 to extend just cause eviction protections to more rental units in Palo Alto when compared with state law and to establish a security deposit limit for unfurnished rental units. Additionally, Council directed staff to return in August 2023 on the Consent calendar with an ordinance that halves the minimum time period for renters to qualify for just cause eviction protections; City Council directed reducing the timeframe for which a renter must lawfully and continuously occupy a rental unit from twelve (12) months to six (6) months. City Council also directed halving other rental unit occupancy timeframe exemption periods when a new adult renter(s) is added to existing rental unit leases.

For additional details and discussion, please see the June 5, 2023 Council report and the June 5, 2023 Council meeting minutes.2
1 Ordinance No. 5589 -Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68 (Rental Housing Stabilization) to Clarify the Definitions of At-Fault and No-Fault Just Cause for Evictions, Extend Just Cause Eviction Protections to More Rental Units in Palo Alto than Offered by State Law, and to Enact a Security Deposit Limit for Unfurnished Rental Units in Palo Alto, Introduced June 5, 2023, Passed June 19, 2023:
https://portal.laserfiche.com/Portal/DocView.aspx?id=66416&repo=r-704298fc. 2 City Council Report, 06/05/2023 (Item #13):
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12530.

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ANALYSIS
For renters covered by the Palo Alto just cause eviction protection ordinance, these local eviction protections require landlords to:
• Terminate tenancies only for “just cause,” which could be either “at fault,” usually when the renter is in non-compliance with their rental agreement, or “no fault,” when the reason is justifiable but not within the renter’s control, • Give renters notice of their right to just cause evictions in the future, • State the specific just cause reason justifying an eviction in a termination notice sent to a renter,
• Provide renters with the opportunity to cure a curable lease violation prior to issuing a termination notice, and
• Provide financial relocation assistance or a rent waiver to renters in cases of a “no fault” just cause termination.

As directed by City Council on June 5, 2023, staff prepared a draft ordinance (Attachment A) that reduces the rental unit occupancy timeframe for renters to qualify for Palo Alto’s just cause eviction protections. The draft ordinance (Attachment A) amends Palo Alto’s recently adopted just cause eviction protection ordinance to reduce the minimum time period required for renters to qualify for just cause eviction protections from twelve (12) months to six (6) months for Palo Alto renters. The minimum time period is also halved for instances when a new adult renter(s) is added to existing rental unit leases. This reduced timeframe recognizes the potential for housing instability in the event of a no-fault eviction, including the initial outlay of overall move-in costs, especially for cost-burdened renters. The minor code amendments are limited to PAMC Sections

9.68.010 and 9.68.040(b) and (d).

Palo Alto’s just cause eviction protections remain more protective than those in state law enacted through California Assembly Bill 1842 (2019), the Tenant Protection Act, because more Palo Alto rental circumstances qualify for eviction protections than those outlined in state law.

TIMELINE
If City Council takes action to approve the draft ordinance (Attachment A), the second reading is tentatively scheduled for August 21, 2023. The ordinance would become effective 30 days after the second reading, tentatively September 20, 2023.

FISCAL/RESOURCE IMPACT
The draft ordinance was prepared using existing City staffing resources. No additional staff or budget resources are necessary to adopt and codify the ordinance. If adopted, staff would conduct community outreach regarding the new regulatory requirements for landlords and protections for tenants; this too could be absorbed in the department’s budget.

As previously reported, City staff would not be involved in the enforcement of this ordinance. If the City Council were interested in directing staff to enforce this or other local renter protection ordinances, additional fiscal impact analysis would be required. It is anticipated city enforcement Item 6
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would substantially impact the City’s Code Enforcement program, require additional managerial support in Planning, and have significant resource impacts to the City Attorney’s office.

POLICY IMPLICATIONS
Pursuing renter protection policy work is consistent with the goals in the City’s 2030 Comprehensive Plan to provide adequate housing for all. Additionally, the renter protection policy work is consistent with the policies and programs in the Council adopted 2023-2031 Housing Element. Therefore, it is anticipated that this action would support the implementation of the Housing Element. These topics are considered a means to affirmatively further fair housing within Palo Alto, as well as a means by which to promote certainty, stability, and fairness in the rental market.

STAKEHOLDER ENGAGEMENT
While preparing this report, staff sent email notifications to identified stakeholders informing them of this draft ordinance. Staff placed an ad in the Daily Post newspaper on July 28, 2023, ten days in advance of the hearing. Staff mailed notice postcards on July 24, 2023, to property owners of Palo Alto parcels identified in the City’s GIS database as having rental units.

ENVIRONMENTAL REVIEW
The California Public Resources Code § 21065 includes a definition of a “project” as subject to the California Environmental Quality Act (CEQA) if it is an activity directly undertaken by a public agency which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. This project is exempt from the provisions of the CEQA, pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

ATTACHMENTS
Attachment A: Draft Ordinance
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 6
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Not Yet Approved
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68 (Rental Housing Stabilization) of in the Palo Alto Municipal Code to Reduce the Minimum Time Period Required for Renters to Qualify for Just Cause Eviction Protections in Palo Alto
The Council of the City of Palo Alto ORDAINS as follows:

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

A. Renters represent a significant percentage of Palo Alto’s population; B. Landlords provide a significant community service by providing rental housing in the City of Palo Alto;
C. Palo Alto has great diversity in residential rental property and rental unit types, ranging from single-family homes, accessory and junior accessory dwelling units, to properties with multi-family apartment buildings containing a variety of rental units; D. There is a need to ensure that housing is provided for people of all income levels, and affirmatively further fair housing;
E. The Palo Alto rental market is one of the most expensive in the country, which is one factor that can lead to potential renters being unable to afford standard rental unit movein costs; F. The Palo Alto rental market is one of the most expensive in the country, which is one factor that can lead to renters at risk of displacement; G. The city desires to implement policies for certainty, stability, and fairness in the rental market for renters and landlords;
H. A significant number of renters in Palo Alto are low-income and cost-burdened; I. The State of California created eviction protections for some rental units in Palo Alto but not others through the enactment of California Assembly Bill 1482 (2019), which currently automatically sunsets in 2030,
J. The city is making significant investments on an ongoing basis regarding rental unit protection, preservation, and production and will also soon need to implement the 6th Cycle Housing Element policies and programs; and
K. On November 29, 2021, the City Council held a public meeting to discuss a variety of renter protection measures and directed staff to draft a response to California Assembly Bill 1482 (2019) by preparing an Eviction Reduction/Just Cause ordinance for Palo Alto to Item 6
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extend state eviction protections to properties built and receiving occupancy within the last fifteen (15) years, but does not include rental units occupied less than a year or single family homes not owned by a corporation or renters who live in a duplex when one unit is owner occupied,
L. On February 9, 2023, the Human Relations Commission held a public meeting to discuss the effectiveness of existing renter protections in Palo Alto and recommended that the City Council adopt the extensions described by the City Council on November 29, 2021 in addition to several other extensions,
M. On June 5, 2023, the City Council directed staff to draft an ordinance that further extends just cause eviction protections by reducing the occupancy timeframe for Palo Alto renters to qualify for eviction protections when compared with the timeframe outlined in California Assembly Bill 1482 (2019),
N. On August 7, 2023, the city found that the ordinance was not in conflict with and was more protective than California Assembly Bill 1482 (2019) in regard to the number of rental units and rental circumstances receiving eviction protections and relocation assistance, and, in some circumstances, in regard to the Tenant Relocation Assistance (TRA) dollar amount required if a tenant received a no-fault just cause eviction, and because the ordinance is permanent and does not contain the California Assembly Bill 1482 (2019) automatic sunset in 2030,
O. On June 5, 2023, the City Council directed staff to draft an ordinance that further extends just cause eviction protections by reducing the occupancy timeframe for Palo Alto renters to qualify for eviction protections when compared with the timeframe outlined in California Assembly Bill 1482 (2019),
P. The City Council finds and determines that this amendment to the ordinance codified in Palo Alto Municipal Code Chapter 9.68 (Rental Housing Stabilization) is adopted pursuant to the city’s authority to protect the public health, safety, and welfare.

SECTION 2. Subdivision (b) of Section 9.68.010 (Purpose) of Palo Alto Municipal Code Chapter 9.68 (Rental Housing Stabilization) in Title 9 (Public Peace, Morals and Safety) is hereby amended to read as follows (new text underlined and deletions struck-through):

9.68.010. Purpose.
(a) It is found and declared that there is a growing shortage of, but increasing demand for, housing in the city of Palo Alto. Such shortage and increased demand, coupled with increasing inflation, have placed substantial pressure on those residents of Palo Alto seeking rental housing. This council finds that renters are entitled to a contractual relationship with a landlord that offers some assurance of stability and fair treatment under the terms of a written lease to Item 6
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minimize displacement of renters into a rental housing market which affords them few and expensive options.
(b) Council further finds that the provisions of California Assembly Bill 1482 (2019), as codified and later expanded in the Civil Code of the state of California, offers important protections from instability and displacement to renters. The provisions of that bill as they relate to eviction reduction are restated and expanded below, to make the protections permanent in the city of Palo Alto, to and extend them to renters living in qualified residential rental units that received a certificate of occupancy within the last fifteen years, and to reduce the minimum occupancy time period for renters to qualify for eviction protections.

SECTION 3. Subdivision (b) and (d) of Section 9.68.040 (Just Cause Evictions Required) of Palo Alto Municipal Code Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals and Safety) is hereby amended as follows (new text underlined and deletions struckthrough):

9.68.040. Just-cause evictions required.
(a) Applicability to residential rental units. This section shall apply to all residential rental units, except not any of the following:
[…]
(b) Protection for renters. Notwithstanding any other law, after a renter has continuously and lawfully occupied a residential rental unit for 12 6 months, the landlord of the residential rental unit shall not terminate the tenancy without just cause, which shall be stated with specificity in the written notice to terminate tenancy. If any additional adult renters are added to the lease before an existing renter has continuously and lawfully occupied the residential rental unit for 24 12 months, then this subdivision shall only apply if either of the following are satisfied:
(1) All of the renters have continuously and lawfully occupied the residential rental unit for 12 6 months or more.
(2) One or more renters have continuously and lawfully occupied the residential rental unit for 24 12 months or more.
[…]
(d) Notice. A landlord subject to this section shall provide notice to the tenant renter, which may take the form of a lease provision or an addendum to a lease, and which shall include the following, in no less than 12-point type:
“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. Local law also provides that after all of the Item 6
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tenants renters have continuously and lawfully occupied the property for 12 6 months or more or at least one of the tenants renters has continuously and lawfully occupied the property for 24 12 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Chapter 9.68 of the Palo Alto Municipal Code for more information.”
[…]
SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

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

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ City Attorney City Manager
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____________________________
Director of Planning and Development
Services
____________________________
Director of Community Services
____________________________
Director of Administrative
Services
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: August 7, 2023
Report #:2305-1449
TITLE
Adoption of a Resolution Establishing Fiscal Year 2024 Property Tax Levy for General Obligation Bonds (Measure N Libraries)

RECOMMENDATION
Staff recommends that the City Council approve a resolution approving the establishment of the Fiscal Year 2024 property tax levy of $8.07 per $100,000 in Assessed Value for the secured and utility tax roll and $8.16 per $100,000 in AV for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds.

EXECUTIVE SUMMARY
In 2008, Palo Alto voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements (libraries). Annually, a property tax levy sufficient to pay debt service on the Bonds must be approved by the City Council and submitted to the County of Santa Clara for collection with the property taxes.

BACKGROUND
On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Rinconada (formerly Main) libraries and to construct the Mitchell Park Community Center. The City successfully sold the Bonds in two series to provide $76 million in funds for the design and construction costs. Both Standard and Poor's and Moody's awarded their highest credit ratings, Triple A, to both series of Bonds which was affirmed by Standard and Poor’s in May 2022 and Moody’s in November 2022.

On March 1, 2016, Council approved the decommissioning of the Library Bond Oversight Committee and accepted a financial report showing approximately $3.0 million in project savings (CMR: 6632)1. In addition, bond premium of $3.1 million could be used to redeem and/or defease 1 City Council, March 21, 2016, CMR 6632: https://www.cityofpaloalto.org/files/assets/public/agendas-minutesreports/reports/city-manager-reports-cmrs/year-archive/2016/6632-mini-packet.pdf Item 7
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bonds. On June 6, 2016, Council authorized the use of $6.1 million of the Series 2010A & 2013A General Obligation (Measure N) Bonds to defease and/or retire a portion of outstanding bonds and to pay associated redemption costs (CMR: 6993)2. To maximize savings to property owners the longest bonds were paid off; total savings of $11 million were realized which includes $4.9 million in interest savings over time. Of the $11 million, $5.4 million will be saved through FY 2040 while $5.6 million will be saved from FY 2041 through FY 2044.

On March 2, 2022, Council approved the refinancing of the Series 2010A and 2013A outstanding principal of $40.6 million and $13.6 million respectively (CMR: 13438; on page 12 of link)3. The Series 2010A was refinanced as a tax-exempt bonds and Series 2013A was partially refinanced as taxable bonds. The tax reform bill passed by Congress and signed into law on December 22, 2017 prohibits the issuance of tax-exempt advance refunding bonds during the (ten-year) call protection period. The call protection period has passed on the Series 2010A Bonds, but it has not passed for the Series 2013A Bonds. The portions of the Series 2013A bonds or $2.1 million in principal, that had realized savings were refinance. In total, a net present value savings of $4.5 million or 10.6 percent was realized. The cash savings is $6.4 million and average annual debt service savings over 18 years is $356 thousand. There are three General Obligation Bonds outstanding, the portion of the tax-exempt Series 2013A bonds that were not refinanced, the tax-exempt Series 2022A bonds that refinanced the Series 2010A bonds, and the taxable Series 2022B bonds that partially refinanced the Series 2013A bonds. Standard and Poor's affirmed their highest credit ratings, Triple A, to both the issuer or City of Palo Alto’s General Fund credit rating and the long-term rating on the City’s General Obligation Bonds outstanding in May 2022.

As of July 1, 2023, principal amount of $47.1 million is outstanding on the General Obligation Bonds.

ANALYSIS
Debt service payments on these Bonds are paid through ad valorem taxes on all taxable land and improvements (both secured and unsecured assessment roll) within the City. Staff is seeking Council approval of the attached resolution (Attachment A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.00807 per $100 or $8.07 per $100,000 in Assessed Value (AV) for the secured tax roll; and $0.00816 per $100 or $8.16 per $100,000 in AV for the unsecured tax roll. In comparison, prior year’s secured and unsecured tax levy was $8.16 and $9.26 respectively, per $100,000 of AV.

The assessment rate for FY 2024 is decreasing for both the secured and unsecured property taxes.

The rate decreases are attributable to the rise in the Secured AV for properties throughout Palo Alto by 6.0 percent, an increase of $2.7 billion and the decrease in the annual debt service 2 City Council, June 6, 2016, CMR 6993: https://www.cityofpaloalto.org/files/assets/public/agendas-minutesreports/reports/city-manager-reports-cmrs/year-archive/2016/6993.pdf 3 City Council, May 2, 2022, CMR 13438: https://www.cityofpaloalto.org/files/assets/public/agendas-minutesreports/agendas-minutes/city-council-agendas-minutes/2022/20220502/20220502pccsmamended-linked.pdf Item 7
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payments due to the lower interest rate realized due to the June 2022 refinancing. In addition, the rise in AV during FY 2024, due to property sales and new construction, resulted in excess collections which further reduced the FY 2024 annual assessment.

As for the unsecured property taxes, per the County of Santa Clara’s methodology, the prior year’s secured tax rate becomes this year’s unsecured tax rate as a result this rate won’t benefit from the coming year’s AV increase and prior fiscal year’s refinancing until FY 2025. However, it did benefit from the Secured AV increase that occurred in FY 2023.

With the new assessment for FY 2023, a house with an assessed value of $1.0 million, for example, would see an annual assessment of $80.70 on their property tax bill. In comparison, in FY 2023, a $1.0 million home had an assessment of $81.60

FISCAL/RESOURCE IMPACT
The bond issuances result in a 2024 calendar year debt service expenditure of approximately $4.11 million and Council approval of the attached resolution will result in ad valorem tax levy revenue of $3.99 million with the $0.12 million difference attributable to available funds on hand.

Secured and unsecured property owners will see a levy of $8.07 and $8.16, respectively, per $100,000 of AV on their FY 2024 property tax statement.

STAKEHOLDER ENGAGEMENT
Staff works with the County of Santa Clara who provide the property assessed valuation for the coming fiscal year which this then used by staff to calculate the property tax levy tax rates.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act because approval of the Measure N property tax levy is a government funding mechanisms or 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 Establishing FY 2022-23 Property Tax Levy Attachment B: Exhibit A - General Obligation Bonds, Election of 2008, Series 2013 2022A, & 2022B Tax Rate Calculation Based on 2023-24 AV
APPROVED BY:

Kiely Nose, Assistant City Manager
Item 7
Item 7 Staff Report
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Attachment A
Not Yet Approved
1 Resolution No.

Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2024 Property Tax Levy of $8.07 Per $100,000 of Secured and $8.16 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness
(Measure N Library Projects)

R E C I T A L S
A. At the City of Palo Alto’s(“City”) general election held on November 4,2008, more than two‐thirds of voters approved Measure N, authorizing the issuance of general obligation bonds in the amount not to exceed $76,000,000 (the “Authorization”) to fund construction of a new Mitchell Park Library and Community center and renovation and improvements to Downtown and Mainlibraries.

B. Pursuant to the Authorization, the City issued two series (Series 2010A and 2013A) of general obligation bonds in June 2010 and June 2013 that yielded $75.8 million for project needs. In June 2022, the Series 2010A was refinanced with a tax‐exempt Series 2022A and the Series 2013A was partially refinanced with a taxable Series 2022B. As a result, there are three general obligation bonds series outstanding, the Series 2013A portion that wasn’t refinanced and the refinanced Series 2022A and 2022B bonds.

C. The City is obligated to levy ad valorem taxes on all property within the City subject to taxation by the City, without limitation on rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the debt service on the Bonds.

D. The City is obligated to direct the County of Santa Clara to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds.

E. The amount of the annual ad valorem tax levied by the City to repay the Bonds is determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the bonds.

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

SECTION 1. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during Fiscal Year 2024 in the amount of $0.00807 per $100 in assessed value for the secured and utility tax roll and $0.00816 per $100 in assessed value for the unsecured tax roll based Item 7
Attachment A -
Resolution Establishing FY
2023-24 Property Tax
Levy
Item 7: Staff Report Pg. 4 Packet Pg. 50 of 285
Attachment A
Not Yet Approved
2 on the calculations set forth in the attached Exhibit "A".

SECTION 2. The City’s Director of Administrative Services shall cause a certified copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in the assessment book of the respective sums in dollars and cents, to be paid as established by this Resolution.

SECTION 3. The Council finds that this is not a project under 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
Item 7
Attachment A -
Resolution Establishing FY
2023-24 Property Tax
Levy
Item 7: Staff Report Pg. 5 Packet Pg. 51 of 285
A) Assessed Valuations (AV)
1 ) 2023-24 Taxable Secured Assessed Valuation (AV) 47,091,331,443 $ 2 ) 2023-24 Taxable Unsecured AV $ 2,331,457,644
3 ) Less: Estimated Delinquency 0.00% - $
4 ) Net Taxable Unsecured AV $ 2,331,457,644
5 ) Total Assessed Valuation (AV) $ 49,422,789,087
B) Tax Levy Requirement
5 ) 2024 Calendar Year Debt Service Payments
2013 (Tax-Exempt) GO Bonds - February 1,2024 224,550.00 $ 2013 (Tax-Exempt) GO Bonds - August 1, 2024 749,550.00 974,100.00 6 ) 2022A (Tax-Exempt) GO Bonds - February 1,2024 833,250.00 $ 7 ) 2022A (Tax-Exempt) GO Bonds - August 1, 2024 2,213,250.00 3,046,500.00 8 ) 2022B (Taxable) GO Bonds - February 1,2024 42,200.00 $ 9 ) 2022B (Taxable) GO Bonds - August 1, 2024 42,200.00 84,400.00 10 ) Total Calendar Year 2024 Debt Service Payments 4,105,000.00 11 ) Excess Funds on Hand Applied Toward Debt Service (125,000.00) 12 ) Sub-total 3,980,000.00
13 ) Santa Clara County Administration Fee (0.25% of Principal & Interest) 9,950.00 14 ) Total 2023-24 Annual Debt Service Requirement 3,989,950.00 C) Secured and Unsecured Tax Rate
15 ) 2023-24 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate) 0.00816 $ 16 ) 2023-24 Unsecured Tax Rate per $100,000 of Unsecured AV 8.16 $ 17 ) 2023-24 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 12) 190,246.94 $ 18 ) 2023-24 Estimated Revenue from Secured AV (line 11 minus line 13) 3,799,703.06 19 ) Total 2023-24 Annual Debt Service Requirement 3,989,950.00 $ 20 ) 2023-24 Secured Tax Rate per $100 of Secured AV (line 14 divided by line 1*100) 0.00807 $ 21 ) 2023-24 Secured Tax Rate per $100,000 of Secured AV (line 14 divided by line 1 times 100,000) 8.07 $ Exhibit A
City of Palo Alto
General Obligation (GO) Bonds, Election of 2008, Series 2013, 2022A and 2022B Tax Rate Calculation Based on 2023-24 Assessed Values
Item 7
Attachment B - Exhibit A
General Obligation Bonds,
Election of 2008, Series
2013, 2022A, & 2022B Tax
Rate Calculation Based on
2023-24 AV
Item 7: Staff Report Pg. 6 Packet Pg. 52 of 285
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: August 7, 2023
Report #:2303-1122
TITLE
Approval of Contract Number C23187501 With Palo Alto Housing Corp (PAHC) Housing Services, LLC for a Not-to Exceed Amount of $356,556 to Provide Administration and Consulting Services for the City’s Below Market Rate Housing Program for a Term of Two-years through June 2025 and Approve an FY 2024 Budget Amendment in the Residential Housing In-Lieu Fund. CEQA Action: Agreements are not subject to CEQA.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Contract No.

C23187501 with PAHC Housing Services, LLC for a not-to exceed of $356,556 to provide administration and consulting services for the City’s Below Market Rate Housing Program for a term of two-years through June 2025; and

2. Amend the Fiscal Year 2024 Budget Appropriation in the Residential Housing In-Lieu Fund (requires a supermajority, 2/3 approval) by:
a. Increasing the Planning and Development Services contract services appropriation in the amount of $33,278; and
b. Decreasing the Ending Fund Balance in the amount of $33,278.

EXECUTIVE SUMMARY
The City of Palo Alto released a Request for Proposals (RFP) for administration of the City’s Below Market Rate (BMR) housing program in February 2023. A proposal from one qualified bidder, PAHC Housing Services, LLC performing business as Alta Housing (“Alta”) formerly known as Palo Alto Housing Corporation was received. Staff recommends the City Council enter a two-year contract with Alta Housing for $356,556.

BACKGROUND
Palo Alto adopted one of the nation's first inclusionary zoning policies. It required that all residential development include ten percent of the units as BMR units. In 1972, the policy Item 8
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required a mix of cost and type of housing in residential planned unit developments. In 1973, the City Council expanded the policy to all new residential developments. In 1974, anticipating the sale of BMR units in several developments, the City contracted with Alta to administer the City's BMR Program, which includes managing the re-sale of BMR ownership units and occupancy of BMR rental units. Since the inception of the program in 1974, the BMR administration has been funded by the Residential Housing Fund.

Under contract with the City, services provided by Alta include:
• Administering the sale and re-sale of new and existing BMR owner units; • Maintaining the home purchase waiting list;
• Monitoring occupancy of BMR ownership units;
• Conducting annual income certifications of BMR rental units; and • Addressing special issues related to the program.

Most of Alta’s workload is involved with the home ownership component of the BMR program.

As part of that, the new contract includes conducting two real estate planning webinars a year.

As the City’s BMR homeowners age, the City is encouraging placing their units in a living trust.

Alta staff had more BMR sales involved in probate than in previous years. Staff believes that this will be a trend that continues. Alta will conduct two real estate planning webinars to BMR homeowners to provide more information about living trusts.

While Alta performs most tasks required for the ongoing administration of the home ownership and rental components of the BMR program, planning staff also devotes time to the BMR program. Staff primarily perform duties related to BMR negotiations and agreements and program improvements.

ANALYSIS
The term of the City’s current agreement with Alta is coming to an end on June 30, 2023. As a result, the City released an RFP (Request for Proposal) for BMR Administration on February 27, 2023. The RFP released in February 2023 is for the next two years, starting on July 1, 2023 and ending in June 30, 2025. The City received one response, from Alta for $356,556 for a two-year contract. This is a consistent response rate from prior solicitations for these services.

With the selection of Alta, administration of the program will continue uninterrupted. Alta has administered the City’s BMR program since the 1970s and has maintained and annually updated a waiting list of interested potential buyers of BMR units. There are currently 237 below market rate ownership units and 350 below market rate rental units managed by Alta. There are another 25 entitled BMR units that could come online during the contract period.

Alta coordinates the sale of both newly built BMR units and the resale of existing units. Sales activities include establishing the resale price; marketing units to the waiting list; scheduling open houses; qualifying and selecting the buyers; coordinating the transaction between the buyer, Item 8
Item 8 Staff Report
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seller, lender, and escrow; and explaining the requirements of the BMR deed restrictions. Alta has maintained a database of all units and kept statistics on the number and characteristics of the households served by the program.

The owner BMR units require periodic monitoring of occupancy and title, which Alta handles in cooperation with planning staff and the City Attorney’s Office. Monitoring activities include reviewing online assessor’s records to detect transfers in title or ownership and an annual selfcertification letter to owners. These letters verify owner occupancy, remind the owners of program rules, and provide updates on procedural changes. When a violation of a deed restriction is discovered, Alta undertakes initial attempts to remedy the situation. More complex enforcement matters are referred to Planning and Development Services (PDS) staff or to the City Attorney (if legal action is required). The City receives quarterly reports showing ownership transaction and rental activity for income restricted units and yearly income certification reports.

Information workshops for prospective buyers on the waiting list are conducted bi-annually by Alta together with housing counseling staff from Project Sentinel. These workshops focus on preparation for homeownership, understanding credit and mortgage financing and the rules of the BMR program. The workshops have been well received, with about 100 persons attending each year.

Alta collects and reviews applicants’ certification documentation to determine eligibility under the program rules. They also conduct recertification of existing tenants and monitor each housing complex’s waiting list and tenant selection process.

POLICY IMPLICATIONS
The recommendation in this staff report does not represent any change to City policies.

Implementation of this Agreement is consistent with the City’s Housing Element and various housing policies that support the provision of affordable housing and a variety of housing opportunities.

FISCAL/RESOURCE IMPACT
The administration of the BMR program has historically been funded from residential housing inlieu fees collected from ownership residential developments of three or more units (including mixed use with ownership housing) in lieu of providing the required below-market rate unit(s) to low- and moderate-income households (PAMC Chapter 16.65). As of June 30, 2023, the preliminary unaudited balance of the Residential Housing In-Lieu special revenue fund is $609,611. Annual revenues for this fund fluctuate based on development activity and is difficult to forecast; however, approval of these funds is within the available balance and will not significantly impact funding availability for future projects.

Item 8
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The Fiscal Year 2024 Adopted Budget, includes $145,000 for this service. At the time of budget development, the request for proposals was underway and therefore, the total cost of services was not included in the budget process. The Alta Housing proposal has a figure of $178,278 per year for a two-year total of $356,556. For reference, the prior contract for BMR administration was $156,117 for FY 2022 and $160,019 for FY 2023 for a total of $316,136. The proposed contract represents a 12.8% increase for the total contract for services through FY 2025. This increase can be partially tied to increased staff time needed for BMR sales that have entered into probate and the general trend of increased costs.

If this contract is approved, staff will recommend funding for the second year of the contract as part of the FY 2025 budget development process and subject to Council approval.

STAKEHOLDER ENGAGEMENT
A request for proposals (RFP) for the project was posted on the PlanetBids, the City’s eProcurement platform, and 1,138 vendors were notified. The solicitation period was posted for 44 days, and 1 proposal were received. The solicitation closed on April 11, 2023.

Table 1: Summary of Request for Proposal
Proposal Description RFP 187501 Below Market Rate Housing Program Administration Services
Proposed Length of Project 2 Years
Number of Vendors Notified 1,138
Number of Proposal Packages Downloaded 7
Total Days to Respond to Proposal 44
Pre-Proposal Meeting No
Pre-Proposal Meeting Date NA
Number of Proposals Received 1
Proposal Price Range $356,556.10
Public Link to Solicitation https://pbsystem.planetbids.com/hub/bm/bmdetail/102752#bidInformation

ENVIRONMENTAL REVIEW
The approval of an agreement for administrative and consulting services is not an action subject to environmental review under the California Environmental Quality Act.

ATTACHMENTS
Attachment A: Palo Alto Housing Corp (PAHC) Housing Services BMR Contract, C23187501 APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 8
Item 8 Staff Report
Item 8: Staff Report Pg. 4 Packet Pg. 56 of 285
Professional Services
Rev. Dec.15, 2020

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CITY OF PALO ALTO CONTRACT NO. C23187501

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND PAHC HOUSING SERVICES, LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 19th day of May, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PAHC Housing Services, LLC, a California Non-Profit Organization, located at 3460 West Bayshore Road, Suite 104, Palo Alto , CA 94303 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS
A. CITY intends to award a qualified firm to provide administrative services for the City’s Below Market Rate Program (the “Project”) and desires to engage a consultant to manage program outreach, ownership, rental, and the Stanford West BMR unit programs within the policy framework set forth by the City in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, 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.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
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, shall be authorized by DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 5 Packet Pg. 57 of 285
Professional Services
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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 services, 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 executed 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 June 30, 2025 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 prompt 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 Three Hundred FiftySix Thousand, Five Hundred Fifty-Six Dollars and Ten Cents ($356,556.10). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services 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 DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 6 Packet Pg. 58 of 285
Professional Services
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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 that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement 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 order 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 Project 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 Services 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 will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 7 Packet Pg. 59 of 285
Professional Services
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withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, 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 City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without 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.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:

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 Sheryl Klein 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 Project 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 Tim Wong, Planning and Development Department, Long Range DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 8 Packet Pg. 60 of 285
Professional Services
Rev. Dec.15, 2020

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Planning Division, 350 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: 650-329-2493 .

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 Project Manager from time to time.

SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, Non-proprietary computations and 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 City 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 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.

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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 9 Packet Pg. 61 of 285
Professional Services
Rev. Dec.15, 2020

Page 6 of 22 ends

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 29.4 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.

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 CONSULTANT’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 CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 10 Packet Pg. 62 of 285
Professional Services
Rev. Dec.15, 2020

Page 7 of 22 ends

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 will 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 Services 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 Project 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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 11 Packet Pg. 63 of 285
Professional Services
Rev. Dec.15, 2020

Page 8 of 22 ends

21.2. CONSULTANT further 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 officer 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.

22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended 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, pregnancy, 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 the 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, CONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY 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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 12 Packet Pg. 64 of 285
Professional Services
Rev. Dec.15, 2020

Page 9 of 22 ends

(b) Goods purchased by CONSULTANT 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 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 Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 26. 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”.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 13 Packet Pg. 65 of 285
Professional Services
Rev. Dec.15, 2020

Page 10 of 22 ends

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.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 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 confidentiality 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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 14 Packet Pg. 66 of 285
Professional Services
Rev. Dec.15, 2020

Page 11 of 22 ends

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 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 will 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:

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 15 Packet Pg. 67 of 285
Professional Services
Rev. Dec.15, 2020

Page 12 of 22 ends

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
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204

PUBLIC WORKS PROJECTS
EXHIBIT G: INFORMATION PRIVACY POLICY
EXHIBIT H: CYBERSECURITY TERMS AND CONDITIONS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 16 Packet Pg. 68 of 285
Professional Services
Rev. Dec.15, 2020

Page 13 of 22 ends

CONTRACT No. C23187501 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

PAHC HOUSING SERVICES, LLC
Officer 1
By:

Name:

Title:

Officer 2
By:

Name:

Title:

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E M. Garcia
CFO
President & CEO
Randy Tsuda
Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 17 Packet Pg. 69 of 285
Professional Services
Rev. Dec.15, 2020

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EXHIBIT A

SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

CONSULTANT shall provide professional services for the City’s Below Market Rate (BMR) housing program in compliance with policy, guidelines, applicable deed restrictions, BMR Program Procedures Manual and in a manner which increases affordable housing opportunities for low- and moderate-income households. The CONSULTANT shall manage program outreach, ownership, rental, and the Stanford West BMR unit programs within the policy framework set forth by the City and act with independent judgement to ensure deliverables are met in accordance with the terms of this exhibit.

TASK 1 - PROGRAM OUTREACH:

CONSULTANT shall handle all questions and comments through CONSULTANT’S office. CONSULTANT’S BMR assistant and Program Administrator are to be available to take phone calls, e-mails, and walk-ins Monday through Friday from 8:00 a.m. to 5:00 p.m.

CONSULTANT shall do program marketing and outreach via CONSULTANT’S search-engine optimized program information on CONSULTANT’S website, posting flyers at local community centers, libraries, and affordable housing communities as well as to other local affordable housing providers to spread the word about the programs offered by the CONSULTANT.

TASK 2 - OWNERSHIP PROGRAM:

1. Maintain all applicant information and perform an annual update to ensure applicants are still interested and/or qualified for the BMR program and to assist in managing the size of the waiting list.

2. Provide a list of primary lender contacts, serve as an intermediary between the buyer and lender to make sure the buyer understands all costs and details associated with the loan and if needed, point the buyer towards other subordinate loans to assist with the purchase. CONSULTANT shall also actively look to add new lenders to the BMR lender list.

3. Use the most current version of the California Association of Realtors (CAR) purchase forms for use of each BMR sale. CONSULTANT shall coordinate the review, explanation, and signing of the Purchase Agreement. CONSULTANT shall coordinate with the escrow company to send over all signed documents and escrow instructions. CONSULTANT shall assist in holding open houses and ordering necessary inspections. CONSULTANT shall stay in contact with escrow officer throughout the escrow period to ensure the sale closes on time. Copies of all closing documents to be sent to the CONSULTANT’S office after closing and filed in the respective BMR owner’s file.

4. Committing to promoting longevity of the BMR housing inventory shall make every effort to ensure BMR owners’ compliance by maintaining consistent contact with relevant HOA’s and to investigate every complaint and/or concern received regarding a BMR owner potentially being in violation of the Deed Restrictions, e.g., renting out a portion of or their entire home.

5. Troubleshoot homeownership problems that arise with BMR owners that may endanger the BMR Purchase stock. CONSULTANT shall have an open-door policy to encourage BMR owners and renters to seek assistance on any situation which may jeopardize their home. CONSULTANT shall reach out to Alta Housing Resident Services Department for referrals and/or resources to assist owners with various services.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 18 Packet Pg. 70 of 285
Professional Services
Rev. Dec.15, 2020

Page 15 of 22 ends

6. Work with a local HUD approved housing agency to provide a bi-annual workshop in Palo Alto, covering topics ranging from program eligibility requirements to loan financing. The workshop is offered at no charge to attendees. A prospective buyer must have attended a workshop to be eligible to purchase a BMR home. CONSULTANT shall be present at every seminar to meet applicants and to answer program questions.

7. Mail a letter out annually to each BMR owner requiring copies of documentation verifying primary owner-occupancy. Documentation includes utility bills, pay stubs, tax returns and property tax bills.

8. Work closely with the CITY to formalize a screening and eligibility process whereby BMR owners facing financial hardship due to unforeseen special assessments could get assistance from the CITY. CONSULTANT shall interview the BMR owner, obtain all relevant income vs. expense documents to prove hardship and either refers the BMR owner to the CITY for approval or denial of the request based on written criteria.

9. Work closely with CITY to assist with creation of and assessment of new BMR Agreements for upcoming housing developments. CONSULTANT shall be involved prior to Regulatory/Development Agreements are signed, CONSULTANT shall review and provide feedback on the language to ensure the Agreements are understandable from the perspective of implementation.

10. Assist the CITY in the growth of the BMR Purchase program by acquisition and rehabilitation of BMR units and properties.

11. Coordinate with CITY staff in the implementation of any BMR Ordinance revisions.

12. Provide advice, consultation, and assistance to CITY staff in negotiations of BMR agreements for new housing developments.

13. Coordinate the process of evaluation, negotiation and financing related to the acquisition and rehabilitation, if necessary, of off-site units or properties contributed under the BMR program.

14. Maintain records and statistics as required by CITY, specifically; a. Annual statistics about the BMR ownership and rental units and the households served; and
a. A permanent database and record of all ownership units placed in the program and statistics about current BMR owners, and all households served over the life of the program, including maintenance of files on each BMR owner unit and retention of copies of the actual recorded deed restrictions for the ownership units; and a. Contact information for current BMR owners with mailing labels and, when available, telephone numbers and e-mail addresses.

15. Conduct bi-annual workshops for BMR owners about estate planning. The workshops will include information about what is a living trust, the potential benefits, and the process of putting their residence in a living trust.

TASK 3 - RENTAL PROGRAM:

1. Work closely with applicants who are next in line for BMR rental units, not including Stanford West Apartments, to answer questions about the property and help gather all necessary documentation for income verification. Applications are approved once all verifications and background checks have been received, income and asset calculations are complete, and a determination is made regarding a household’s eligibility. Applicants who do not meet the eligibility criteria are sent denial letters with an option to appeal within 14 days.

2. Send out notices to all BMR tenants approximately 90 days in advance of the effective date, schedules re-certification interviews, obtains relevant income and asset documents, completes income calculations, and determines continued eligibility by the process described above. Tenants DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 19 Packet Pg. 71 of 285
Professional Services
Rev. Dec.15, 2020

Page 16 of 22 ends

who are deemed over income are notified that they have 90 days to either move out of the unit or start paying market rate rent. CONSULTANT shall notify site managers of the results of the tenant recertification immediately following the completion of the calculations.

3. Review and approve all new BMR rental move-in files prior to occupation of a BMR unit. Annually monitor all BMR rental units to ensure that all BMR rental obligations are being met at each property and that the rents do not exceed the maximum allowable for each respective unit.

4. Maintain contact with site staff and provide on-going training with property managers at BMR properties to ensure compliance with the CITYs BMR program.

5. AH staff calculates annual rent increases based on CPI and provides Developers & BMR site staff with updated move in income limits and rents based on published HCD Income limits.

TASK 4 – STANFORD WEST BMR UNITS

1. Continue to provide on-going training to site managers and staff to ensure compliance with the CITYs BMR program.

2. Receive quarterly reports from site managers and reviews best practices at the site level as it relates to waitlist management and tenant selection to ensure compliance with the BMR program.

3. Perform initial certification reviews, re-certification interviews, obtain relevant income and asset documents, complete income calculations and determine continued eligibility of all BMR units to assure compliance with the BMR program.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 20 Packet Pg. 72 of 285
Professional Services
Rev. Dec.15, 2020

Page 17 of 22 ends

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 21 Packet Pg. 73 of 285
Professional Services
Rev. Dec.15, 2020

Page 18 of 22 ends

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.

TASKS SCHEDULE
TASK 1 - PROGRAM OUTREACH Daily/Ongoing
TASK 2 - OWNERSHIP PROGRAM Daily/Ongoing
TASK 3 - RENTAL PROGRAM Daily/Ongoing
TASK 4 – STANFORD WEST BMR UNITS Daily/Ongoing
DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 22 Packet Pg. 74 of 285
Professional Services
Rev. Dec.15, 2020

Page 19 of 22 ends

(Version 1 - use for task-based compensation)

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 Exhibit 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.

TASKS Fiscal Year 2024
AMOUNT
Fiscal Year 2025
AMOUNT
TASK 1 - PROGRAM OUTREACH $23,532.70 $23,532.70
TASK 2 - OWNERSHIP PROGRAM $37,081.83 $37,081.83
TASK 3 - RENTAL PROGRAM $85,573.46 $85,573.46
TASK 4 – STANFORD WEST BMR UNITS $32,090.05 $32,090.05
Sub-total for Services
Reimbursable Expenses
Total Compensation $178,278.05 $178,278.05
Total Not to Exceed (Fiscal Years 2024 + 2025) $356,556.10

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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 23 Packet Pg. 75 of 285
Professional Services
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EXHIBIT C-1

SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:

POSITION RATE
President & CEO $300/hour
Chief Financial Officer $165/hour
Program Director $175/hour
BMR Administrator/Manager $135/hour
Accounts Payable/Staff Accountant $100/hour
Program Assistant $95/hour
DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 24 Packet Pg. 76 of 285
Professional Services
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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.

DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 25 Packet Pg. 77 of 285
Professional Services
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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 DocuSign Envelope ID: A9FE9E25-2D34-4D62-9870-414B43BDB04E Item 8
Attachment A - Palo Alto
Housing Corp (PAHC)
Housing Services BMR
Contract, C23187501
Item 8: Staff Report Pg. 26 Packet Pg. 78 of 285
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: August 7, 2023
Report #:2305-1406
TITLE
Approve Amendment No. 1 to Contract C21181034 with Rincon Consultants, Inc. for the Continued Work on the Housing Element Update, and Approval of a FY 2024 Budget Amendment in the General Fund for the Reappropriation of funds from FY 2023 to FY 2024. Environmental Review: Agreements are not subject to CEQA.

RECOMMENDATION
Staff recommends that Council:

1. Approve and authorize the City Manager or his designee to execute Amendment No. 1 to Contract C21181034 with Rincon Consultants, Inc. (Attachment A), amending the scope of services, increasing maximum compensation in the amount of $168,776 for a total not to exceed amount of $796,769.

2. Amend the FY 2024 Budget Appropriation for the General Fund by (2/3 approval needed):
a. Increasing the contract expense appropriation in the Planning and Development Services Department by $168,776; and
b. Decreasing the Budget Stabilization Reserve by $168,776.

EXECUTIVE SUMMARY
Staff is requesting an amendment to Contract C21181034 with Rincon Consultants, Inc. On April 12, 2021, the City Council approved a $627,993 contract with Rincon Consultants, Inc. to prepare the City’s 2023-31 Housing Element1. The proposed amendment increases the scope of work and contract capacity for additional unanticipated work.

The amendment would be for additional expenses for:
• Extra public and City meetings;
• Responding to additional State requirements;
1 April 12, 2021 Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutesreports/reports/city-manager-reports-cmrs/year-archive/2021/id-11928.pdf Item 9
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• Accelerated adoption schedule;
• Additional Housing Element review; and
• A potential 3rd round of Housing and Community Development HCD review.

The attached contract amendment identifies specific tasks, deliverables and timelines to complete the project. Funding approved in FY 2023 for this work is recommended to be reappropriated early to FY 2024 to award the contract without impacting other work planned for FY 2024.

BACKGROUND
Since 1969, the State has required all local jurisdictions to adequately plan to meet the housing needs of everyone in the community. Each jurisdiction must update their Housing Element every eight years. The 5th cycle planning period of 2015-23 recently expired. The City is in the process of updating its Housing Element for the 6th cycle planning period of 2023-31. The deadline to have a compliant Housing Element was January 31, 2023.

The procurement process for the initial contract began on November 30, 2020 when a request for formal proposals (RFP) was posted on PlanetBids Vendor Portal. The solicitation period was held for 24 days, with proposals due on December 23, 2020. The City received two proposals, which were evaluated by Planning and Development Services and the City Attorney’s Office.

Specific focus was placed on each firm’s expertise of the housing element process, environmental review and understanding of Palo Alto specific concerns. One round of interviews was conducted and Rincon Consultants, Inc. (Rincon) was subsequently selected.

On April 12, 2021, the City Council approved the original contract with Rincon Consultants, Inc. to prepare the City’s 2023-31 Housing Element2. The amount of the contract, including all subconsultants, was set at a “not to exceed” of $627,994. Funding was provided from the City general fund and other State grants. This contract amendment was unable to be processed in FY 2023 due to negotiations with Rincon, department workload priorities, timing of contract administration and year-end citywide financial closing processes; therefore, the funding for this contract amendment needs to be reappropriated to FY 2024 in order to allow the work to continue without impacting other work planned in FY 2024.

ANALYSIS
With a significant number of new requirements implemented for 6th cycle Housing Elements, the preparation of the 2023-31 Housing Element has been more complex and elaborate than any 2 April 12, 2021 Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutesreports/reports/city-manager-reports-cmrs/year-archive/2021/id-11928.pdf Item 9
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previous Housing Element. The amendment will allow for the continuity of work and expansion of scope to include the following:

Extra Public and Staff Meetings
Rincon began working with staff and the Housing Element Working Group in May 2022. In preparing for the Working Group meetings, staff needed longer meetings with Rincon than was budgeted. Also, it was planned to have one Working Group meeting a month. However, some months had two Working Group meetings.

Additional HCD Requirements
During the update process, the State implemented additional Housing Element requirements, primarily requiring a 30-day public review and considering all public comments prior to HCD submittal. This required additional Rincon resources. At time of contract execution, this requirement was not in place therefore not in the scope of work or budget.

Aggressive Adoption Schedule
Once the HCD comments were received by the City, the City elected to have a compacted schedule for response to HCD comments. This required Rincon to allocate additional staff and other resources to meet the City’s aggressive adoption schedule.

Additional HCD Review
Understanding that HCD was intensely scrutinizing Housing Elements, staff elected for an additional round of consultant review in order to minimize HCD comments. This additional round of review was not accounted for in the original scope. Additionally, based on HCD trends, Rincon and staff anticipate the potential need for a 3rd round of HCD review of the City Housing Element.

Therefore, the amendment also includes the estimated costs of a 3rd review.

FISCAL/RESOURCE IMPACT
Funding of $168,776 for this contract amendment was included in the FY 2023 operating budget in the General Fund. Ordinarily, the funds would be reappropriated as part of the standard process for reappropriations since the contract amendment was not able to be finalized before the close of FY 2023. The annual reappropriation memorandum is anticipated to be presented to Council in October 2023. Given the timeliness and urgency of this contract, the budgetary actions described in the recommendation section of this report constitute an “early reappropriation”.

Funding of $168,776 is recommended to be reappropriated from FY 2023 to FY 2024, a technical realignment between fiscal years, as part of this memorandum to support work related to this contract and minimize impacts to other work planned in FY 2024.

Item 9
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STAKEHOLDER ENGAGEMENT
City staff have updated City Council, commissioners and the community at public meetings where the Housing Element was discussed, including the compressed timeline for completion.

ENVIRONMENTAL REVIEW
Approval of this contract amendment is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. The City approved an Addendum to the Comprehensive Plan Final Environmental Impact Report (2017) for the Housing Element update and associated tasks.

ATTACHMENTS
Attachment A: Rincon Contract, C21181034 Amendment No.1 APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 9
Item 9 Staff Report
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AMENDMENT NO. 1 TO CONTRACT NO. C21181034

BETWEEN THE CITY OF PALO ALTO AND
RINCON CONSULTANTS, INC.

This Amendment No. 1 (this “Amendment”) to Contract No. C21181034 (the “Contract” as defined below) is entered into as of June 6, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RINCON CONSULTANTS, INC., a California corporation, located at 180 N. Ashwood Avenue, Ventura, CA 93003 (“CONSULTANT”).

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

R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of Housing Element Update, associated rezoning actions and required California Environmental Quality Act (CEQA) review, as detailed therein.

B. The Parties now wish to amend the Contract in order to increase compensation by One Hundred Sixty Eight Thousand and Seven Hundred Seventy Six Dollars ($168,776) for adding Scope of Services including Additional Services; changing total compensation value from Six Hundred Twenty Seven Thousand Nine Hundred Ninety Three Dollars ($627,993) to maximum total value of Seven Hundred Ninety Six Thousand and Seven Hundred Sixty Nine Dollars ($796,769).

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

SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21181034 between CONSULTANT and CITY, dated April 5, 2021.
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 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:
“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 Six Hundred Seventy Six Thousand and Seven Hundred Sixty Dollars ($676,760) . The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
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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 One Hundred Four Thousand Six Hundred Sixty-Five Dollars ($104,665.00) as a Twenty Percent (20%) of total cost contingency for the performance of Additional Services (as defined below) in the original contract. As part of Amendment No. 1, CITY is adding Fifteen Thousand Three Hundred Forty-Three ($15,343). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Twenty Thousand and Eight Dollars ($120,008) 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 Services in this Section 4.

CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.”
DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 6 Packet Pg. 84 of 285
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SECTION3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCES”, AMENDED, REPLACES PREVIOUS.
c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS.

SECTION4. 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.

SECTION5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 7 Packet Pg. 85 of 285
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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
(Contract over $25k)
RINCON CONSULTANTS, INC.

Officer 1
By:

Name:

Title:

Officer 2 (Required for Corp. or LLC)
By:

Name:

Title:

Attachments:
 EXHIBIT A: SCOPE OF SERVICES, AMENDMENT. NO. 1 (AMENDED, REPLACES PREVIOUS)  EXHIBIT B: SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES

PREVIOUS)
 EXHIBIT C: COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS)  EXHIBIT C-1: SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES

PREVIOUS)
DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Richard Daulton
Principal/Secretary
Abe Leider
Principal
Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
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EXHIBIT A
SCOPE OF SERVICES, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

A. Community Engagement Plan
Task A.1 Kickoff Meeting and Community Engagement Plan Kick Off Meeting Upon authorization to proceed, Rincon will facilitate a kickoff meeting and city tour, if desired, with City of Palo Alto staff. The purpose of the kickoff meeting is to discuss data needs and initial community issues and opportunities, set project expectations, and explain our proposed approach to the various components of the work program. The kickoff meeting is envisioned as a two-hour event followed by a citywide tour, if desired.

Following the kickoff meeting, and conducted in a way deemed safe per COVID-19 conditions at the time of project initiation, the Rincon/VTA team and City Staff will tour the city in individual vehicles to explore key underutilized, vacant, and opportunity areas of focus as part of the Housing Element Update. The citywide tour is envisioned as a half-day (four hours) event, with COVID-compliant procedures if the team leaves the vehicles at any time during the tour.

Community Engagement Plan
Through our work in Palo Alto and updating Housing Elements for other cities, Rincon understands that public engagement will be at the forefront during the Housing Element Update.

We strive to reach all community members using a variety of virtual and non-virtual methods through the languages they are most comfortable using, and work closely with local community groups, organizations, staff, and officials who know Palo Alto best. The Rincon/VTA team will kick COVID-19 and Community Engagement
Due to the ongoing COVID-19 pandemic, we realize that the form of community engagement and participation such as public meetings, workshops, and community events is currently limited. Our team has become experienced at creating innovative, COVIDcompliant outreach strategies that meet the needs of each specific community. We are currently working on several projects that have transitioned to Zoom or Microsoft Teams virtual platforms for public meetings and interviews with great success. We have also reimagined how to solicit community feedback, transitioning several large outreach events to completely virtual platforms. These have included interactive online exercises, educational and informational videos, GIS participatory mapping techniques, live webinars with Q&A sessions, and visual preference surveys.

Once in-person meetings are allowed, we can abide by County Public Health Guidelines and facilitate small group meetings. These could take place over two days and adhere to social distancing requirements. We will work with City staff to finalize our approach to facilitating community outreach and are dedicated to ensuring an inclusive process for all.

DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
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off the community engagement effort by developing a Community Engagement Plan to educate, inform, and gain meaningful input from a broad and diverse range of groups and populations in Palo Alto. Community engagement will focus on the community at-large, directly affected stakeholders including property owners, businesses, residents and interest groups, and civic decision-makers. This effort will be designed to effectively build collaborative interest and identify common values and goals in the project direction, given the diverse group of local stakeholders, and to bring new participants into the conversation.

Deliverable
Community Engagement Plan
Task A.2 Community Workshops and Working Group Meetings Community Workshops The Rincon/VTA team will assist City staff in preparing for and conducting up to five community workshops to discuss the Housing Element Update at key points in the process. Two public workshops will be hosted near the beginning of the project initiation to introduce the community to the Housing Element update process and its goals and to inform the public how to be involved throughout the project. The remaining three public engagement workshops will be organized around themes. This approach targets notification efforts to specific stakeholder groups interested in the specific themes and helps alleviate any fatigue or schedule conflicts that stakeholders and community members may feel with in-person participation. In light of the ongoing COVID-19 health crisis, HCD has stated that it is acceptable for much of the public engagement to occur online, although multiple engagement opportunities are anticipated. The Rincon/VTA team has therefore budgeted for participation in virtual workshops. The Rincon/VTA team will prepare all materials for the workshops and will serve as workshop facilitators.

Deliverables
Materials and presentations for up to five Community Workshops, including PowerPoint presentations.

Working Group Meetings
The Rincon/VTA team will facilitate a citizen/stakeholder working group to help gather community input during the Housing Element update process. At least one Rincon team member will attend and contribute to up to 15 working group meetings beginning in mid-2021 and continuing through fall of 2022. We will work with the City and working group to create each meeting’s agenda and we will maintain meeting minutes with roll call, discussion topics, and action items documented for each meeting. Meeting minutes will be provided to the City Project Team within two business days following each meeting. Additional responsibilities will include:
 Facilitating all HEAC meetings; Ms. Acosta will serve as the lead facilitator and primary point of contact for all working group communication and questions, with Brenna Weatherby and Veronica Tam attending as needed;
 Developing agendas with City Project Team and distributing agendas to members before each meeting;
 Preparing required memos and staff reports for each meeting;  Preparing materials, e.g. PowerPoint presentations, handouts, etc., needed for each working group meeting;
 Delivering presentations to the working group;
DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 10 Packet Pg. 88 of 285
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 Maintaining the working group roster and contact information; and  Coordinating with the City Project Team to invite community groups (e.g., HOAs, service organizations, developers, business organizations) to participate in relevant working group meetings, as applicable.

Deliverables
Materials (varied) for Working Group meetings
Task A.3 Public Meetings
The Rincon/VTA team has budgeted for participation in six public meetings on the project. The Rincon/VTA team anticipates two Planning and Transportation Commission and four City Council meetings. We anticipate these meetings will be a combination of study sessions and public hearings to inform decisionmakers about the housing element process, discuss site selection strategies and challenges, and to present the Draft and Final Housing Element and CEQA review findings and recommendations.

The RFP acknowledges the potential for additional City subcommittee meetings. Rincon/VTA team attendance at these meetings will be billed on a time and materials basis at current rates, as shown in our cost sheet and rates. The cost of our attendance at subcommittee meetings will vary depending on the level of consultant team involvement and the topic at hand. A per meeting cost is anticipated to range from $1,200 to $2,500.

Deliverables
 Materials/presentations for Public Hearings, including PowerPoint presentations and printed exhibits. We have assumed $2,000 for printing costs associated with these materials, which will not be billed in the event of virtual public hearings.

Task A.4 Other Outreach
Webpage Development and Maintenance
As part of the Community Engagement Strategy, the Rincon/VTA team will collaborate with the City Project Team to provide content for an interactive, informational webpage for the Housing Element Update and online public input survey. The webpage will enable community members and stakeholders to participate in an online survey, offer suggestions, exchange ideas, and learn about city-wide housing issues.

Stakeholder Email List
The Rincon/VTA team will assist the City in maintaining a tracking matrix to be created and updated by City staff throughout the project to document interested parties, affected audiences, and areas of community interest. Rincon will collect points of contact, mailing addresses, and emails of groups and agencies likely to be interested or affected by the Housing Element Update at public events and online engagement platforms for the City to include in the matrix and in the mailing list.

Neighborhood and Pop-Up Outreach
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who commonly have engagement or equity concerns such as LGBTQ+, underserved communities, and environmental justice communities.

Roadshow Material
Rincon can prepare one set of “roadshow” materials that can be used by City staff and partner organizations at neighborhood meetings or pop-up outreach. These will be in the form of two activity posters, one set of handouts, contact information flyers, and associated activity materials to encourage
community engagement and input. Rincon assumes the City will be responsible for all printing and distribution of materials.

Deliverables
 Webpage initial language and update language
 Digital and printed neighborhood and pop-up materials  Digital roadshow materials
Information Flyer
Materials will be designed for posting at pre-determined locations to generate interest in the Housing Element Update. These could take the form of a flyer or postcard that the City will be responsible for posting. The Rincon/VTA team will provide data and information but has assumed that the City and Santa Clara County Planning Collaborative (SCCPC) will be responsible for development of informational materials and all printing costs.

Deliverables
Language for informational flyer in Word format
Task A.5 Online Engagement
Over the past decade, communication through online and social media has transformed how information is both disseminated and received by the public. These online media tools are powerful, cost-effective and increasingly becoming the expected norm for how information is communicated. For the Palo Alto Housing Element Update, a variety of tech tools can replicate and supplement the core outreach methods used in the traditional General Plan workshops.

Components of online engagement are proposed to include:
 Participatory Mapping Exercises and Tools. Participatory mapping exercises are a type of survey that allows participants to view, comment, and prioritize specific topics.

Participatory mapping exercises can allow community members to identify and rank current housing conditions, identify and rank potential opportunity sites, and rate potential methods for implementing affordable housing, design standards, and policy changes to reduce barriers to housing.
 Story Maps: Vision, Issues, and Priorities. Story maps are an educational tool to help guide the viewer through the history, purpose, and process and easily provide information in a spatial format. Story Maps are clearly organized, visually appealing, and easy to use and allow us to tell the story of Palo Alto and its community and residents.

Each story map should focus on a specific topic and contain a variety of content necessary to help educate stakeholders about the Housing Element. The Rincon/VTA team will design an online story map that educates and informs residents and stakeholders about the housing history, conditions, and potential future in Palo Alto.

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 Online Survey. Knowing that many residents lead busy lives and may not be able to set aside time or have the ability to attend a virtual workshop, the Rincon/VTA team will design and disseminate a survey that will allow people to participate on their own time and in their own way. The Rincon/VTA team will draft the survey and revise questions based on staff feedback. Staff will be responsible for advertising the survey’s availability through the City’s other communication channels. Following its closing, an accompanying summary report will be created with numerical breakdowns of responses, charts and graphs where applicable, and narrative descriptions of the qualitative results.  Social Media. A strategy will be developed for sharing project information through social media outlets such as Facebook, NextDoor, and Twitter. Language and images will be provided at key points in the process to the City for managing content through existing City accounts (up to four social media pushes are anticipated).  Email Blasts. In concert with social media efforts, content for email blasts will be prepared to keep the community engaged and informed at key point in the process.

Rincon will prepare content for up to four email blasts, which the City will send through established email listservs or newsletters.

Deliverables
 Survey questions and online survey
 Social media language
 Email blast content
B. Housing Element Review and Assessment
Task B.1 Document Review
Rincon will review all readily available resources including various codes, standards, and policies maintained by the Planning Department, the Comprehensive Plan Elements and 2017 Final EIR, all Area Plans and studies, the 2020-2025 Draft Consolidated Plan (Community Development Block Grant program), Eichler Design Guidelines, Single Story Overlay regulations, and housing services documents. Additional information will be provided by the City upon award of contract, including the City’s updated site inventory and development status information and city GIS data layers. We also anticipate the use of regional planning documents such as the Association of Bay Area Governments (ABAG) Comprehensive Economic Development Strategy for the San Francisco Bay Area, 2011 Bay Area Hazard Mitigation Plan, the Metropolitan Transportation Commission Plan Bay Area 2050 plans, the Santa Clara County 2020-2025 Consolidated Plan and Assessment of Fair Housing, and ABAG housing information, including the Regional Housing Needs Assessment (RHNA) for the Housing Element Cycle, when finalized. Any additional data or document needs will be assessed and discussed with the city to determine how the information is best accessed and/or shared.

Task B.2 Review and Evaluation of Current Housing Element As an initial task to the Housing Element update, and following the kickoff meeting, we will review and evaluate the 2015-2023 Housing Element. Specifically, we will:
 Discuss the effectiveness and continued appropriateness of current housing programs and policies
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 Identify any barriers to achieving identified goals
 Review compliance with new State laws
 Identify potential revisions to existing programs
We will start by evaluating the City’s latest Housing Element Annual Progress Report (APR). We will interview staff and compile additional information to provide an assessment of the continued appropriateness of existing programs and whether new programs should be added to address emerging trends and issues. Upon completion of this review, we will provide a memo summarizing our findings and a draft outline for the Housing Element Update.

Deliverable
 Assessment Memorandum to include details on our review of the 2015-2023 Housing Element
C. Housing Element
Task C.1 Housing Resources and Opportunities
The Rincon/VTA team will compile a list of housing resources and opportunities for inclusion in the Draft Housing Element. The Housing Resources and Opportunities section will include a description of the City’s 2023-2031 RHNA from ABAG. This analysis will examine the resources and opportunities available for the development, rehabilitation, and preservation of housing, which we have assumed will be provided by City staff or SCCPC, and shall include the following:
 Units Approved, Built, or Under Construction
 Adequacy of Public Facilities and Services
 Inventory of Financial and Administrative Resources available to support housing resources
 Energy Conservation Opportunities
Deliverable
 None – information to be wrapped into Housing Element Task C.2 Housing Constraints
The Rincon/VTA team will identify potential governmental and non-governmental constraints to housing production, including environmental and infrastructural constraints. This analysis will contain a review of factors that may potentially constrain the development, improvement, and preservation of housing in Palo Alto. Factors to be reviewed include market, governmental, environmental, and infrastructural constraints. New Housing Element laws also require the assessment of non-governmental constraints, including NIMBYism, lending practices, shortage of labor, and other economic factors.

Where constraints exist, the Rincon/VTA team will identify and develop housing programs that can assist in the removal of constraints, where feasible. For each program, the Rincon/VTA team will identify potential funding sources, the lead agency or City division responsible for implementation, objectives, and timeframes.

Deliverable
 Analysis of governmental constraints (to be wrapped into Housing Element)  List of Housing Programs for inclusion in Housing Element Update Task C.3 Housing Inventory of Sites Analysis
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ABAG’s Illustrative RHNA Allocation for the 6th cycle is 10,058 units. Based on this allocation, the Housing Element update will require efforts to identify sites with sufficient capacity for the RHNA, taking into consideration the following adequate site requirements under new Housing Element laws:
 No net loss of capacity when sites are developed
 Continued ability to meet the RHNA by income group
 Stringent standards for assessing feasibility when reusing vacant and underutilized sites that have previously been included in the 5th cycle Housing Element  Demonstrated trends of development
Per Addendum No. 1, we understand that ABAG is developing a site selection tool to assist jurisdictions as they prepare their parcel-specific sites inventory. We assume this tool will be available to the for use in the development of the Palo Alto sites inventory. Using this tool, a parcel-specific sites inventory will be developed and opportunities for lot consolidation will be identified. We will prepare an “adequate sites analysis” showing the relationship between the City’s RHNA and the dwelling unit capacity, availability of potential housing sites based on zoning, infrastructure, and General Plan policies, requirements, and limitations.

It is important to note that AB 1397 (Adequate Sites) and SB 166 (No Net Loss) impose stringent requirements on the sites inventory for RHNA. Given the City’s development pattern, it is anticipated that most sites identified in the sites inventory will have an existing use and improvements and will be smaller than one-half acre. These sites may also have been used in a previous housing element cycle. In order to include these sites in the sites inventory, additional justification is required and may need to include:
 Lot consolidation potential
 Feasibility of development on smaller sites
 Impediments for residential development on non-vacant sites  Recent development on similar sites
 Substantial evidence the existing use is likely to be discontinued within the planning period Following the analysis of available sites, a sites inventory will be prepared using HCD’s current inventory worksheet format and template. The Rincon/VTA team will work closely with staff and HCD to provide an expanded analysis of the sites inventory.

Deliverables
 Draft Sites Inventory and Review of Sites for Suitability/Adequacy for RHNA Task C.4 Housing Needs Assessment
The Rincon/VTA team will prepare a complete housing assessment and needs analysis consistent with State Housing Element law and HCD’s Completeness Review Checklist. The Needs Analysis will be comprehensively updated with the most recent American Community Survey (ACS) and housing market data. The Needs Analysis will contain the topics listed below to satisfy Government Code Section 65583(a) requirements:
 Demographics, Income, and Employment Trends. This section includes information on the population growth trends, along with income distribution and employment trends.

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 Household Characteristics. This section will also discuss household characteristics such has size, tenure, composition, and overcrowding conditions that may impact housing needs.  Housing Stock Characteristics. This section will be an analysis of the condition of the existing housing stock as well as cost and affordability, including discussions on cost burden (overpayment).
 Affirmatively Furthering Fair Housing. This section will discuss new Housing Element law, which requires jurisdictions to examine barriers to fair housing and ensure housing programs are implemented in a manner to affirmatively further fair housing.  Residential Building Permit Activity. This section will discuss residential building permit trends for single-family and multi-family products, building code regulations, fees, and permit and processing procedures. We will also analyze constraints on housing for persons with disabilities, as well as the city’s current permitting procedures for emergency shelters, transitional and supportive housing, and single-room occupancy units.  Analysis of Special Housing Needs. The Rincon team will update the analysis of housing needs for special needs populations, including senior households, persons with disabilities, large families, single female-headed households, low-and very-low-income households, and the homeless.
 At-Risk Housing (Assisted Unit) Analysis. This task will include an analysis of existing assisted housing developments that are eligible to change from low income housing to market rate over the next ten years (i.e., at-risk housing). This analysis will cover units that are deed-restricted as low income housing as a result of public assistance, density bonus requirements, and inclusionary housing program.

Deliverable
 Housing Needs Analysis
Task C.5 Goals, Policies, and Implementing Programs
Based upon the analyses and research conducted in the previous tasks, the Rincon/VTA team will develop programs and policies to guide implementation of the Housing Element over the next eight years. Housing goals, policies, and quantified objectives will focus on the production, conservation, maintenance, preservation, and improvement of housing. For each program included in the Housing Element, we will establish the timeframe for implementation, specific objectives, funding sources, and responsible agencies. All goals, policies and programs will be incorporated into the Housing Element.

Deliverables
 None – information to be included in Housing Element
D. Refine VTA Travel Demand Model
The City of Palo Alto Travel Demand Model (PATDM), which is a refinement of VTA’s Countywide Model (VTATDM), was calibrated and validated in 2013 against 2010 travel data based on ABAG Projections 2013 (P’13). In the fall of 2019, ABAG and the VTA developed new sets of land use data based on ABAG’s Projections 2017 (P’17). Review of the year 2015 local and regional land use assumptions show significant differences, not only future year (2040) projections but also for the 2015 base year. Existing 2015 land use assumptions from P’17 are more accurate than the DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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P’13 since the P’13 was a land use forecast while the P’17 land uses are based on actual historical data.

In addition, the United States Census Bureau recently released the 2011-2015 journey to work data from the American Community Survey and MTC compiled transit ridership data from household and on-board surveys and developed a database of regional transit trips by submode and by mode of access for the Bay Area Region.

Based on these data, VTA updated the VTATDM. This update involved recalibrating the distribution and mode choice models and performing a “soft” model validation based on a very limited set of traffic counts and transit ridership data.

While the VTATDM was validated at the County level, the validation effort concentrated on the regional facilities such as freeways major arterials. Updating the PATDM involves using the VTATDM and focus on refining the model’s capability of producing accurate travel patterns in the larger Palo Alto area. This model refinement includes the following tasks:

Task D. 1 Land Use Data
With input from the jurisdiction in Santa Clara County, the VTA recently developed a year 2015 land use data set that is generally consistent with the ABAG P’17. For the purpose of this scope of work, it is assumed that VTA’s 2015 land use assumption for the region, including the City of Palo Alto, will be the basis for the model update.

Task D.2 Review Trip Distribution and Mode Choice Models In recent years, more current travel data has become available. The US Census Bureau released county to county journey to work data and workers per household by auto ownership data from the American Community Survey. These data were used to recalibrate the home-based work trip distribution model. For the non-work trip purposes, the 2013 California Household Travel Survey was used as the bases for calibration the distribution models. MTC’s 2015 Regional Transit Survey and daily transit ridership for the major transit operators were used to calibrate the mode choice models. Hexagon will review the calibration results to ensure that the model accurately reflects observes travel patterns. If necessary, Hexagon will adjust the model. In order to maintain consistency with the travel patterns from the VTA model, Hexagon may need to recalibrate the distribution and mode choice models. Hexagon will request the calibration files from the VTA and recalibrate these models if necessary.

Task D.3 Highway Model Validation
Model validation will use generally accepted validation criteria:  The volumes on all roadway links for which counts are available should be within 10 percent of the counts.

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 At least 75 percent of the roadway links for which counts are available should be within the maximum desirable deviation, which ranges from approximately 15 to 68 percent depending on total volume.  The model-wide coefficient of determination (R2) should be greater than 0.77.  The correlation coefficient between the actual ground counts and the estimated traffic volumes should be greater than 88 percent.  The Root Mean Square Error (RMSE) should not exceed 40 percent.

Task D.4 Transit Model Validation
The PATDM model will be validated against observed transit ridership. The transit validation will focus on comparing systemwide estimated ridership by mode (Caltrain, VTA Express Bus and VTA Local Bus and Marguerite, if daily boarding counts are made available) and daily boardings at the Palo Alto Caltrain Station. The target for transit systemwide validation is to be within 10% of the counts. However, larger differences are expected at the route level.

Task D.5 Model Validation Documentation
A memorandum will be prepared to document the input assumptions and results of the model update. The results will be presented in tabular form with comparisons of 2015 model volumes and existing traffic counts.

Data to be provided by the City
Although we have 2013 and 2014 traffic counts in the Palo Alto, additional traffic counts are needed to validate the model. It is our understanding that the City does have traffic counts from traffic studies conducted in the past five years. When available, the City will provide daily roadway segment counts and peak hour intersection turning movements counts. Counts should have been taken on weekdays between 2015 and 2019.

E. Updates to Other Comprehensive Plan Elements
Task E.1 Comprehensive Plan Amendments
Based on the evaluation of the current Comprehensive Plan, issues and opportunities identified as part of the legislative analysis, and in conjunction with the Housing Element Update, we will prepare revisions to existing goals, policies, and actions, as appropriate and propose new goals, policies, and actions, as appropriate. This effort will focus on refinements and updates to address key policy topics and new state mandates and guidelines.

If determined necessary, Rincon will update the Circulation Element of the Comprehensive Plan with information provided by Hexagon. The Circulation Element will describe the existing DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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transportation system and its physical and operational characteristics within the City of Palo Alto.

The plan will include a description of the various transportation systems serving the city, existing level of service conditions at intersections and numerous freeway segments, truck routes, travel patterns based on forecasts developed with the TFM, transit ridership on the rail and bus systems and bicycle travel. The circulation element will also include transportation related goals, policies and programs to address future transportation needs for residents, visitors and businesses. Any necessary amendments to the goals and policies for the Comprehensive Plan will be the responsibility of Rincon with input from Hexagon.

Rincon will utilize the City’s existing format, layout, and style to create an amended Comprehensive Plan. Rincon will edit Comprehensive Plan Elements as Word files in track changes before converting the document to another format. If Word files are not available, Rincon will work with the City to establish the best method for these amendments.

Rincon anticipates up to two rounds of review of the Comprehensive Plan amendments. Each draft will be submitted electronically only and we will address one set of compiled, tracked changes from the City. The Comprehensive Plan table of contents (including figures, tables, and charts), glossary, and index will be updated as appropriate to reflect changes made throughout the document.

Deliverables  Administrative Draft of updated Comprehensive Plan (electronic delivery)  Draft Comprehensive Plan (electronic delivery)  Final Comprehensive Plan (electronic delivery) F. Zoning Code Amendments
Task F.1 Rezoning
Following preparation of the Administrative Draft Housing Element, the Rincon/VTA team will prepare a list of municipal code sections that will need to be amended to maintain consistency with updated Housing Element programs and identified Comprehensive Plan amendments.

Changes to the municipal code will need to address the development of new residential zones or any re-zoning or upzoning that are required in order to accommodate the City’s RHNA allocation.

The list will prioritize changes to
Title 18, Zoning, with those that would result in the most widespread housing development potential prioritized over changes that would not have as much impact.

Deliverable  List of Impacted Code Sections
Task F.2 Draft Ordinance
The Rincon/VTA team will support staff in their preparation of draft ordinance language to reflect the required updates to the Palo Alto Municipal Code. Staff will be expected to provide any draft DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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ordinance language, edits, and comments to Rincon staff in Microsoft Word format with a single set of consolidated comments. Rincon will then deliver suggested edits on the revised Draft Ordinance language in tracked changes to the City.

Deliverable  Draft Ordinance Language Edits
G. Environmental Document
We understand that Palo Alto would like to prepare a supplement to the 2030 Comprehensive Plan Update EIR, certified in 2017, rather than a subsequent or new EIR. In accordance with Section 15164 of the CEQA Guidelines, a lead agency may prepare a supplement to a previously certified EIR if some changes or additions are necessary, but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred.

Our approach in preparing the Supplemental EIR is to develop a user-friendly document that identifies potentially new CEQA impacts that need to be addressed, including Wildfire and Energy, and to address transportation impacts using Vehicle Miles Traveled (VMT) as a significance criterion replacing the traditional Level of Service (LOS) standard (requirement beginning in July of 2020). To the greatest extent feasible, Rincon will utilize the analysis contained within the previously certified 2030 Comprehensive Update EIR as the basis for the supplemental analysis, allowing for the assessment of issue areas where there has been minimal change or where existing mitigation still addresses the potential impacts, thereby reducing costs for the city.

Task G.1 Environmental Assessments
In conjunction with the Initial Adequate Sites Inventory (Task C.3) and in support of the project’s CEQA compliance requirements, Rincon will conduct focused assessments of the following environmental topics of concern. The analyses described herein will be summarized in the corresponding IS and/or Supplemental EIR section and separate technical reports will not be prepared (except for the traffic impact analysis). All data used in the technical analyses will be included as appendices to the primary environmental document.

Air Quality
Rincon will conduct air quality analyses for proposed project to determine if the predicted emissions during construction or operation of development envisioned under the Housing Element, Comprehensive Plan, and Zoning Code updates would result in significant impacts beyond those assessed in the 2030 Comprehensive Plan Update EIR. Construction emissions estimates would be generated from generalized construction data developed in conjunction with the city. Mobile source emissions will be estimated based primarily on trip generation data from traffic reports prepared for the GPU. The California Emissions Estimator Model (CalEEMod) will be used to estimate emissions of criteria pollutants associated with the project. Rincon will use the California Department of Transportation’s (Caltrans) Transportation Project-Level Carbon DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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Monoxide Protocol methodology to determine if project traffic may result in local carbon monoxide hotspots. It is not anticipated a detailed hot spot analysis would be required. The analysis will address the project’s conformance with the Bay Area Air Quality Management District Air Quality Strategy and/or the State Implementation Plan. The analysis will also determine if the project will expose any sensitive receptors to substantial pollutant concentrations or create objectionable odors.

Biological Resources
A Rincon biologist will review the city's RHNA allocation and city-supplied data, the initial "firstpass" of potentially adequate sites inventory for biological resource constraints, and biological resource data including but not limited to query of relevant databases such as California Natural Diversity Database and National Wetlands Inventory, for information pertaining to biological resources occurring in the city. Based on this review, Rincon will prepare a map indicating areas with low, medium or high biological constraints.

The analysis will prioritize those biological constraints that could result in high mitigation costs or but will identify all potential biological resource constraints. Rincon will provide an overview of the type and extent of additional studies that may be needed to adequately examine future project effects; typical avoidance measures and compensatory mitigation that may be required to address impacts to biological resources; and responsible resource/regulatory agencies with jurisdictional authority for each specific resource identified.

Cultural Resources Evaluation
Rincon will prepare a programmatic cultural resources analysis to address potential impacts to archaeological and historic built environment resources. The cultural resources analysis will review historic resources and archaeological resources within the potential housing locations and the potential impacts to those resources as a result of the project. The study will include research on the prehistory and history of Palo Alto, as well as a review of historic maps, aerial photographs and data included in the California Historic Resources Inventory. Rincon assumes that no fieldwork or project level analyses will be required.

Rincon will discuss the existing geologic setting, determine the paleontological sensitivity of geologic units within the Plan area, identify potential impacts to paleontological resources from development within the Plan area, discuss significance thresholds, and propose mitigation to avoid or mitigate impacts to scientifically significant paleontological resources. No formal museum records search will be performed, and the analysis will consist of an online search of available fossil locality records, review of existing geologic maps, and a review of primary literature regarding fossiliferous geologic units within the Plan area and region.

Greenhouse Gases
Rincon will conduct GHG analyses for proposed plans to determine if the predicted emissions during construction or operation of development proposed under proposed Housing Element Update, and the Comprehensive Plan and Zoning Code updates would result in substantial increase in GHG emissions beyond those assessed in the 2015 FEIR. Projected construction DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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emissions would be generated from construction data developed with the city as part of the air quality analysis scope. Mobile source emissions will be estimated based primarily on trip generation data from traffic reports for proposed plans. CalEEMod will be used to estimate GHG emissions associated with the proposed Housing Element, Comprehensive Plan, and Zoning Code updates. The GHG analysis will also address the project’s conformance with the City of Palo Alto Climate Action Plan, including the City’s Climate Action Plan Ordinances.

Noise and Vibration
Rincon will conduct an noise and vibration analysis to determine if the predicted noise levels during construction or operation of land uses under the proposed Housing Element, Comprehensive Plan, and Zoning Code updates would exceed applicable city noise standards or result in impacts not already assessed in the 2017 FEIR. As part of the analysis, Rincon will perform long- and short-term field measurements at various potential housing sites within a plan area and at locations with receptors that may be affected by noise resulting from future developments and to document the existing noise environment. Project construction noise impacts would be generated from construction data (e.g., assumed duration of construction, phasing, types of equipment to be used, number of construction workers, etc.) developed in conjunction with the city. Construction traffic noise levels affecting existing land uses will be modeled to determine the potential traffic noise increases.

The analysis of long-term operational noise impacts associated with the future development will include noise increases generated by vehicle traffic on area roadways and noise from typical onsite noise sources, e.g. mechanical ventilation. Rincon will calculate traffic noise levels based existing, existing plus project, and cumulative plus project scenarios of forecasted traffic volumes as identified in traffic reports. Rincon will use this information to determine if increases to roadway noise levels would adversely affect existing or future land uses along affected roadways.

On-site noise sources will be evaluated based on typical requirements for mechanical ventilation based on building size and other published noise reference data for activities.

Transportation/Traffic
Hexagon Transportation Consultants, Inc. will prepare a traffic impact analysis to assess the effects of the Housing Element Update compared to the current General Plan Housing Element conditions. The effects of increased traffic due to housing density increase or rezoning at selected locations will be assessed. The document will be a supplement to the General Plan and Climate Action Plan Final EIR, certified in 2015.

The evaluation of the Housing Element will be based upon the City’s transportation policy. The City’s CEQA transportation policies require an evaluation of potential impacts related to vehiclemiles traveled (VMT) criteria. In addition, the effects of the plan on travel mode split, the percentage of travelers using a particular type of mode of travel or number of trips, intersection DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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levels of service and other performance measures evaluated in the existing Comprehensive Plan will also be evaluated for informational purposes to better understand the transportation-related outcomes associated with the plan. However, the determination of project impacts per CEQA requirements will be based solely VMT.

The transportation analysis will consist of an evaluation of the effects of the housing development plan for Palo Alto on the citywide transportation system through the year 2031.

The existing Comprehensive Plan and its certified EIR included the planned development growth levels adopted in the Comprehensive Plan. Therefore, this traffic analysis will utilize the Comprehensive Plan land use data as the basis from which land use adjustments for the proposed Comprehensive Plan are made.

Furthermore, the Palo Alto travel forecasting model (TFM) used for the completion of the existing Comprehensive Plan will be used for this traffic analysis, and VMT calculations will include the latest (ABAG Projections 2017) land use assumptions. Forecasts and traffic analyses will be based on year 2031 conditions and include the following project scenarios:  Existing Comprehensive Plan which includes the adopted land use plan and assumed transportation system.  Evaluation of up to three alternative project land use plans that include the approximately 10,000 housing units per the Regional Housing Needs Allocation  Evaluation of the preferred land use plan Develop Forecasts for the Existing Comprehensive Plan. The City’s Travel Demand Forecast model includes the roadway network in the project area that is representative of Year 2030. The 2030 roadway network will be reviewed and adjustments made to reflect the roadway network to ensure that improvements identified as part of the adopted Comprehensive Plan roadway network are included. In addition, the review will identify adjustments that must be made to reflect any planned roadway adjustments and improvement projects that were not included in the Comprehensive Plan. Hexagon will run the travel forecasting model and develop year 2030 travel forecast for the existing Comprehensive Plan.

Develop Year 2030 Travel Forecast for the Proposed Plan. Land use input data for the proposed plan, which will include 10,000 or more housing units in Palo Alto will be provided by City staff or Rincon. The data need to be provided for each traffic analysis zone in Palo Alto. Hexagon will update the land use data base to reflect the housing allocation of the plan and run the model to develop forecast for the proposed Comprehensive Plan.

Performance Statistics. Consistent with SB 743, VMT will be used as the metric to evaluate significant transportation impacts. The assessment of VMT impacts will be based on the process and criteria documented in the SB 743 Implementation Decisions for Palo Alto, dated July 1, 2020.

A Vehicle Miles Traveled (VMT) will be prepared and Hexagon will work with City staff to DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 23 Packet Pg. 101 of 285
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determine project adjustments necessary to mitigate any identified project impacts to VMT.

Other performance statistics that were used in the current Comprehensive Plan will be summarized and analyzed.

Deliverables  Technical Memorandums  Transportation Analysis Task G.2 Notice of Preparation (NOP) and Scoping Meeting Pursuant to CEQA Guidelines Section 15163(c), a Supplemental EIR shall be given the same kind of notice and public review as is given to a draft EIR under CEQA Guidelines Section 15087. The NOP is intended to alert other public agencies about the undertaking, and to solicit their input on the scope of the Draft Supplemental EIR. Rincon will submit a final PDF copy of the NOP to city staff for posting on its website and for distribution to public agencies. It is assumed that the city will distribute the NOP using the city’s distribution list. Rincon will be responsible for filing the NOP with the Santa Clara County Clerk and State Clearinghouse/OPR. As required by CEQA, the NOP will circulate to responsible and trustee agencies for 30 days.

During the 30-day NOP review process, Rincon will facilite a public scoping meeting to inform the public on the environmental issues they should expect to see addressed in the EIR as well as gather public input. Rincon will make a brief presentation on the Housing Element, Comprehensive Plan, and Zoning Code updates, and environmental review process, then record relevant public comments received.

These comments will be summarized in the Supplemental EIR.

Rincon assumes that the city will be responsible for notifying and consulting with local tribes pursuant to SB 18 and AB 52 requirements. Rincon can assist with that process by preparing materials and instructions for tribal noticing.

Deliverables  NOP for posting on website  SB 18 and AB 52 Noticing Materials Task G.3 Preparation of a 15162 Initial Study
The Initial Study will evaluate each of the CEQA environmental issue areas using a modified CEQA Appendix G environmental checklist in accordance with CEQA Guidelines Section 15162. The IS analysis will also include a comprehensive review of the certified EIR mitigation measures. The purpose of the IS will be to determine the extent to which the environmental impacts associated with the proposed Housing Element, Comprehensive Plan, and Zoning Code updates were adequately addressed in the original EIR. This process will determine whether a Supplemental EIR is the appropriate document as assumed, and which CEQA environmental topics may need to be focused on for supplemental analysis.

DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 24 Packet Pg. 102 of 285
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Rincon will incorporate information from any relevant and available technical studies to assist in addressing checklist issues. Where appropriate, impacts will be quantified in relation to established thresholds of significance. A determination of significance will be made for each issue area and mitigation measures will be provided as necessary for identified significant effects.

Although each topic will be discussed in appropriate detail in the IS, we anticipate that key issue areas for the project will include topics found to be potential significant in the 2017 EIR. These topics include air quality and transportation. We will also assess potential impacts related to new CEQA topics including Energy and Wildfire.

Deliverable
 Initial Study (electronic delivery)
Task G.4 Administrative Draft Supplemental EIR
The supplement to a certified EIR only needs to contain the information necessary to make the previous EIR adequate for the project as revised. Therefore, the format of the Administrative Draft Supplemental EIR will follow that of a focused EIR, concentrating on only those topics found to require minor additions or changes as a result of the proposed Housing Element, Comprehensive Plan, and Zoning Code updates. Our general report structure will include all the required sections of an EIR: Introduction; Executive Summary; Project Description and Environmental Setting; Analysis, Impacts, and Mitigation Measures; Alternatives Analysis; Cumulative Impacts; and Other CEQA Sections.

The number of impacts to be analyzed and the depth of analysis will be a function of the IS conclusions, responses to the NOP, and staff direction based on current needs, and those still adequately addressed by the current EIR. New potential impacts will be identified, and mitigation measures will be prepared or modified to reduce significant impacts to a less-than- significant level, when feasible. For each potentially significant impact identified, the team will develop, in coordination with city staff and the broader consultant team, General Plan goals and/or policies to avoid or reduce identified impacts as self- mitigating policies. New or modified mitigation measures will be developed only if self-mitigating policies are determined not feasible or reasonable. The alternatives analysis will focus on reexamining the 2017 EIR alternatives and revise the alternatives and associated analysis only as necessary based on the changes from the Housing Element, Comprehensive Plan, and Zoning Code updates.

Hexagon will be responsible for preparing the transportation analysis for use in the SEIR for the Housing Element and subsequent Comprehensive Plan Amendments. In addition to existing conditions, the transportation section will analyze traffic conditions of the existing and the proposed Comprehensive Plan. Traffic analysis will include analysis of freeway segments, interchanges, study intersections, transit ridership, and bicycle and pedestrian usage. Consistent with SB 743, VMT will be used as the metric to evaluate significant transportation impacts. The assessment of VMT impacts will be based on the process and criteria documented in SB 743 Implementation Decisions for Palo Alto, dated July 1, 2020.

DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 25 Packet Pg. 103 of 285
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Following internal city staff comments on the Administrative Draft Supplemental EIR (up to two rounds of review), the team will incorporate appropriate revisions to the Administrative Draft Supplemental EIR and prepare a Screencheck Draft Supplemental EIR for final internal review. All submissions of the Administrative Draft Supplement EIR will be provided in an editable, electronic Word format only. We assume all comments and revision requests will be submitted in a compiled and tracked changes Word format.

Deliverables  Administrative Draft Supplemental EIR (electronic delivery)  Screencheck Draft Supplemental EIR (electronic delivery) Task G.5 Draft Supplemental EIR
Upon authorization from city staff, the team will prepare the Public Review Draft Supplemental EIR for public circulation and distribute the Draft Supplemental EIR to the State Clearinghouse, responsible agencies, and interested agencies, organizations, and persons as part of the 45-day public circulation and review period per CEQA regulations. Rincon will provide digital versions (PDF and Word) of the Supplemental EIR (including appendices) for city use.

Task G.6 Final Supplemental EIR
Following public review, the team will prepare draft Responses to Comments. As part of preparing the responses, we will use the bi-weekly conference calls to discuss comment responses. Following internal comments on the draft responses, the team will prepare the final Responses to Comments. Concurrent with the preparation of Responses to Comments, Rincon will prepare a Mitigation Monitoring and Reporting Plan (MMRP) to be included in the Final Supplemental EIR.

The team will prepare the Final Supplemental EIR after receipt of all written comments received during the review period. The Final Supplemental EIR will consist of the comments, responses, and corrections to the Draft Supplemental EIR, if any are warranted and be subject to up two rounds of review. Rincon will prepare a Screencheck Final Supplemental EIR for one round of internal city staff review and confirmation. The city will be responsible for submitting the Notice of Determination (NOD) to the County Clerk per CEQA regulations. Rincon assumes that no more than 72 hours of professional time will be required to respond to public comments on the Draft EIR. Rincon will provide digital versions (PDF and Word) and 15 printed copies of the Supplemental EIR (including appendices) for city use.

Pursuant to CEQA Guidelines Section 15163(e), when the City Council ultimately decides whether to approve the project, they will need to consider the 2017 EIR as revised by the Supplemental EIR. Findings under Section 15091 will need to be made for each significant effect shown in the 2017 EIR as revised. Our Scope of Work does not include assistance with the preparation of Findings of Fact. This task can be added with written authorization of a change in scope and in accordance with our standard fee schedule.

DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
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Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 26 Packet Pg. 104 of 285
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Deliverables  Responses to Comments (electronic delivery)  MMRP (electronic delivery)  Final Supplemental EIR (electronic delivery) H. Prepare and Finalize Housing Element
Task H.1 Administrative Draft Housing Element
We will prepare the Administrative Draft Housing Element based on analysis, research, and comments/discussions from the previous tasks. Our timeline and budget assume one round of review by City staff. The document will be provided in Word and PDF versions.

Deliverable
 Administrative Draft of the Housing Element Update (electronic delivery) Task H.2 Public Review Draft Housing Element
We will incorporate staff comments to formulate the Public Review Draft to be reviewed by City decision makers prior to submitting to HCD for review. We will work with City staff to compile a list of stakeholders and agencies/organizations to receive notification of the availability of the Draft Housing Element.

Deliverable
 Public Review Draft of the Housing Element Update (electronic delivery) Amendment No. 1 - Task H.2.1 - Draft Housing Element for HCD Submittal (New) CONSULTANT will incorporate comments received from Veronica Tam and Associates, Inc. (VTA) following an internal screen check, and comments received from the public following the 30-day public review period to formulate City of Palo Alto Housing Element Update the Draft Housing Element. CONSULTANT understands that public comments are anticipated to be extensive, and that the City has requested an expedited schedule with a submittal date of December 23, 2022.

Deliverables
 Draft of the Housing Element Update (electronic delivery)  Hard copy of the Housing Element Update to be mailed (via USPS) to HCD Task H.3 Final Draft Housing Element
Following HCD review, the Rincon/VTA team will incorporate any comments to formulate the Final Housing Element prior to City Council adoption.

Deliverables
DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 27 Packet Pg. 105 of 285
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 Final Adopted Housing Element Update (electronic delivery)  All background and base data, including any GIS maps and digital data files Task H.4 HCD Certification
HCD review of the Draft Housing Element is mandatory. During the review, we will work to address all HCD comments and will communicate with HCD and facilitate review of the revisions via revised pages. All revisions made to the Draft Housing Element will be shown as tracked changes. The goal is to secure a Finding of Substantial Compliance on the Draft Element before proceeding to adoption. This way, final certification will be contingent upon adopting the Housing Element as revised and reviewed by HCD and the City would avoid adopting a Housing Element that does not completely meet HCD requirements and needing to repeat the review and adoption process again. Throughout the HCD review process, the Rincon/VTA team will maintain contact with HCD staff via email and phone calls regarding the City’s progress, key issues to be addressed, and alternative approaches to compliance. After adoption, the Housing Element must be submitted to HCD for its final review within 90 days.

Deliverables
 Cover letter summarizing changes
 Final Housing Element for certification
Amendment No. 1 - Task H.4 - HCD Review #1 (Addition)
HCD review of the Draft Housing Element is mandatory. Following the review, CONSULTANT will work to address HCD comments and will communicate with HCD and facilitate review of the revisions. This task includes edits following preliminary review by HCD (comment table titled “Received Dec 23”) and additional edits following receipt of a formal HCD comment letter (anticipated late March 2023).

All revisions made to the Draft Housing Element will be shown as tracked changes. The goal is to secure a Finding of Substantial Compliance on the Draft Element before proceeding to adoption. This way, final certification will be contingent upon adopting the Housing Element as revised and reviewed by HCD and the City would avoid adopting a Housing Element that does not completely meet HCD requirements and needing to repeat the review and adoption process again. That said, based on CONSULTANT’s recent experience with housing element updates in the 6th cycle, we anticipate that 2-3 rounds of review will be required.

Throughout the HCD review process, the CONSULTANT and VTA team will maintain contact with HCD staff via email and phone calls regarding the CITY’s progress, key issues to be addressed, and alternative approaches to compliance. This task includes two hours of virtual meetings with CITY staff to address comments that require local knowledge and CITY feedback. The CONSULTANT team will coordinate with HCD staff for clarification and guidance as needed. Please note that the Housing Element will need to be available to the public for 7 days prior to sending to HCD for additional review.

Deliverables
 Cover letter summarizing changes, to be included as part of resubmittal package DocuSign Envelope ID: 0A2E9658-80EF-4336-AFCC-7A2956D8A50B Item 9
Attachment A - Rincon
Consultants, C21181034
Amendment No. 1
Item 9: Staff Report Pg. 28 Packet Pg. 106 of 285
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Palo Alto City CouncilAugust 7, 2023

Palo Alto City Council
August 7, 2023