Agenda packet — Palo Alto City Council, March 11, 2024 (part 2 of 4)

Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
Pg.
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T1.6.2 Continue to work with Caltrain, Amtrak, and public bus operators to expand bicycle storage on public transit
vehicles and at transit hubs during both peak and off-peak hours.

Office of
Transportation
IP $ OOT O No updates to report at this time.

T1.11.1 Collaborate with Stanford University, VTA, Caltrain and other agencies to pursue improvements to the Palo Alto
Transit Center area aimed at enhancing pedestrian
experience and improving circulation and access for all modes, including direct access to El Camino Real for transit vehicles
Office of
Transportation
IP $$$ OOT P No change from previous year's reporting. Project is on hold for long term. In the long term, a Downtown Coordinated Area Plan is needed to address this program.

T1.11.2 In collaboration with Caltrain and Stanford Research Park, pursue expansion of service to the California Avenue
Caltrain Station and creation of an enhanced transit center at the Station, including connections to VTA bus service, the Palo Alto Free Shuttle, the Marguerite, and other
private shuttles serving the Research Park.

Office of
Transportation
M $$$ OOT P No updates to report at this time. In the long term, a California Ave Transit Center plan is needed to address this program.

T1.12.1 Strongly recommend that VTA maintain existing service and coverage levels in Palo Alto.

Office of
Transportation
IP $ OOT O VTA's 2024 Transit Service Plan provides roughly the same frequency and coverage as 2023.

T1.12.2 Work with VTA to expand VTA express bus service routes to serve the Stanford Research Park, California Avenue, Stanford University, and Downtown.

Office of
Transportation
S $$ OOT O No change to report.

T1.12.3 Work with VTA to study the feasibility of, and if warranted provide, traffic signal prioritization for buses at Palo Alto intersections, focusing first on regional transit routes. Also, advocate for bus service improvements on El Camino Real such as queue jump lanes and curbside platforms.

Office of
Transportation
S $$ OOT O No updates to report at this time.

T1.13.1 Investigate a pilot program to subsidize a taxi, rideshare, or transit program for Palo Altans to get to/from downtown, including offering education and incentives to encourage users.

Office of
Transportation
M $ OOT O The pilot on-demand transit service vendor is currently operating electric and hybrid vehicles in Palo Alto and offers fare incentives.

While staff seek grants to extend service hours, long-term funding of this service has not been identified. The Transportation Management Association (TMA) continues to subsidize
ridesharing and transit for downtown service workers.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
Pg.
70 Packet Pg. 82 of 333

T1.14.1 Evaluate the shuttle system in collaboration with community members, people with special needs, and
PAUSD to:
-Evaluate current routes and ridership;
-Identify potential service improvements, including new or modified routes; expanded schedules that accommodate
daytime, evening, and weekend demand; facilitating
transit connections, and improvements to the safety and appearance of shuttle stops;
-Explore partnerships with other services that could
complement and supplement the Palo Alto Shuttle;
-Develop clear and engaging materials to explain and
promote shuttle use with the purpose of reducing barriers to use; and
-Establish a schedule for regular evaluation and reporting to optimize shuttle system use and effectiveness.

Office of
Transportation
IP $$$ OOT O The on-demand transit service vendor is currently operating electric and hybrid vehicles in Palo Alto. This pilot project provides transit service to most of Palo Alto on weekdays from 8am to 6pm. While staff seek grant funding to expand service hours, long-term funding of this service has not been identified.

T1.16.1 Continue regular surveys of bicycle use across the city, by collecting bicycle counts on important and potential
bicycle corridors.

Office of
Transportation
IP $$ OOT O Ongoing as part of City of Palo Alto's Bicycle + Pedestrian Transportation Plan (BPTP) implementation.

T1.16.2 Consider marketing strategies such as a recurring Palo Alto Open Streets program of events, potentially in
coordination with local business groups, which would
include street closures and programming.

City Manager’s
Office
M $ CMO/PWE O New staff leading economic development functions for the City has engaged a contractor to develop an economic strategy and part of this work will include marketing approaches that contribute to the City's economic vibrancy. In addition, the City Council will be reviewing staff recommendations related to the parklet program and open streets in Fall 2023. Through the budget adoptions, new CSD events staff was added to assist with furthering this goal.

T1.16.3 Encourage private schools to develop Walk and Roll Maps as part of Transportation Demand Management strategies
to reduce vehicle trips.

Office of
Transportation
IP $ OOT O This is an ongoing effort. Gideon Hausner Jewish Day School developed their own map in 2014.

T1.16.4 Participate in local and regional encouragement events such as Palo Alto Walks and Rolls, Bike to Work Day, and Bike Palo Alto! that encourages a culture of bicycling and walking as alternatives to single occupant vehicle trips.

Office of
Transportation
M $ OOT O Coordination with City staff and various event sponsors is ongoing.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T1.19.1 Adjust the street evaluation criteria of the City's Pavement Management Program to ensure that areas of the road
used by bicyclists are maintained at the same standards as, or at standards higher than, areas used by motor vehicles.

Include bicycle and e-bike detection in intersection
upgrades.

Department of
Public Works
M $ PWE O City-wide street surveys are completed biennially and include pavement inspections of bike lanes and bike boulevards.

Installation of video detection equipment is included with street maintenance projects when
appropriate.

T1.19.2 Prioritize investments for enhanced pedestrian access and bicycle use within Palo Alto and to/from surrounding
communities, including by incorporating improvements
from related City plans, for example the 2012 Bicycle + Pedestrian Transportation Plan and the Parks, Trails &
Open Space Master Plan, as amended, into the Capital
Improvements Program.

Department of
Public Works
IP $$$ PWE O This program is ongoing. There are no substantial actions to report at this time.

T1.19.3 Increase the number of east-west pedestrian and bicycle crossings across Alma Street and the Caltrain corridor, particularly south of Oregon Expressway.

Department of
Public Works
L $$$ PWE O This program is ongoing. There are no substantial actions to report at this time.

T1.19.4 Encourage the use of bike sharing, and the provision of required infrastructure throughout Palo Alto, especially at transit stations and stops, job centers, community centers, and other destinations.

Office of
Transportation
IP $ OOT P Work has not commenced. Council approved budget to hire Transportation staff to work on Bicycle and Pedestrian
Transportation Plan projects. Recruitment for this position is occuring in Fall of 2023.

T1.19.5 Improve amenities such as seating, lighting, bicycle parking, street trees, public art, and interpretive stations along bicycle and pedestrian paths and in City parks to encourage walking and cycling and enhance the feeling of safety.

Office of
Transportation
and Department
of Public Works
IP $$$ PS / PWE / OOT O There are no substantial actions to report at this time. Ongoing as opportunities arise.

T1.22.1 Collect, analyze and report transportation data through surveys and other methods on a regular basis. Track
progress on build-out of the 2012 Bicycle + Pedestrian
Transportation Plan network.

Office of
Transportation
R $$ OOT O This program is ongoing. There are no updates to report at this time.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T1.25.1 As part of the effort to reduce traffic congestion, regularly evaluate the City’s current Transportation Impact Fee and modify as needed to implement transportation
infrastructure improvements. Modifications to the impact fee program should be structured in keeping with the
City’s desire to require new development to reduce peak hour motor vehicle contributions to the provision of transit services, shuttles, carpool/ rideshare incentives, and
similar programs.

Office of
Transportation
IP $ OOT O No updates to report at this time.

T1.26.1 In collaboration with regional agencies and neighboring jurisdictions, identify and pursue funding for rail corridor improvements and grade separation.

Office of
Transportation
S $ OOT O Staff had been pursuing several grant applications at Regional, State and Federal Level. Staff was succuessful in obtaiing the FRA grant in the amount of $6.0 from Rail Crossing Elimination Program to perfrom Prelminary Engineering & Environmental Work at the threee crossings of Churchill, Meadow and
Charleston Crossings. In addition, Churchill Avenue Project was selected for funding of final design phase throgh Transit and Intercity Rail Captial Program in the amount of $23.79M T2.1.1 Implement computerized traffic management systems to improve traffic flow when feasible.

Office of
Transportation
IP $$ OOT O System server upgrade effort began in 2023 and is ongoing.

T2.1.2 Implement a program to monitor, coordinate, and
optimize traffic signal timing a minimum of every two
years along arterial and residential arterial streets.

Office of
Transportation
IP $$ OOT O This is an ongoing program, no updates to report at this time.

T2.2.1 Work in partnership with the Palo Alto TMA and Stanford University to aggregate data and realize measurable
reductions in single-occupant vehicle commuting to and
from Downtown and in the Stanford Research Park.

Office of
Transportation
IP $ OOT O This program is ongoing. There are no updates to report at this time.

Goal T-2: Decrease delay, congestion, and vehicle miles travelled with a priority on our worst intersections and our peak commute times, including school traffic.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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73 Packet Pg. 85 of 333

T2.3.1 When adopting new CEQA significance thresholds for VMT for compliance with SB 743 (2013), adopt standards for
vehicular LOS analysis for use in evaluating the consistency of a proposed project with the Comprehensive Plan, and
also explore desired standards for MMLOS, which includes motor vehicle LOS, at signalized intersections.

Office of
Transportation
S $$ OOT P No updates to report at this time.

T2.4.1 Revise protocols for reviewing office, commercial, and multi-family residential development proposals to evaluate multimodal level of service and identify gaps in the low stress bicycle and pedestrian network.

Office of
Transportation
S $ OOT P Methodologies for Multimodal Level of Service (MMLOS) are neither standardized nor widely used. Level of stress analysis of the bicycle and pedestrian network is anticipated in the current update of the Bicycle and Pedestrian Transportation Plan. This analysis will inform development review by staff.

T3.5.1 Continue to use best practices in roadway design that are consistent with complete streets principles and the Urban Forest Master Plan, focusing on bicycle and pedestrian
safety and multi-modal uses. Consider opportunities to
incorporate best practices from the National Association of City Transportation Officials guidelines for urban streets and bikeways, tailored to the Palo Alto context.

Office of
Transportation &
Department of
Public Works
S $$ PWE / OOT O No updates to report at this time.

T3.5.2 Establish procedures for considering the effects of street design on emergency vehicle response time.

Department of
Public Works &
Palo Alto Police
Department &
Palo Alto Fire
Department
R $ Fire / PD O Input given when requested from the City. There are no substantial actions to report currently.

T3.10.1 Support increased public transit, traffic management and parking solutions to ensure safe, convenient access to and from the Stanford Shopping Center/ Medical Center area.

Office of
Transportation
R $ OOT O No change to report at this time.

T3.10.2 Implement and monitor Development Agreement traffic mitigations at Stanford Medical Center.

Office of
Transportation
IP $ PDS O This program is ongoing led by the Planning & Development Services Department with Office of Transportation support as needed.

Goal T-3: Maintain an efficient roadway network for all users.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T3.10.3 Provide safe, convenient pedestrian, bicycle, and transit connections between the Stanford Shopping
Center/Medical Center areas and housing along the Sand
Hill Road/Quarry Road corridors to Palo Alto Transit
Center, Downtown Palo Alto, and other primary
destinations
Office of
Transportation
R $$$ OOT P Work has not commenced. The Quarry Road Extension is a future project that will reduce transit travel time.

T3.10.4 Pursue extension of Quarry Road for transit, pedestrians and bicyclists to access the Palo Alto Transit Center from El Camino Real. Also study the feasibility of another
pedestrian and bicycle underpass of Caltrain at Everett Street.

Office of
Transportation
M $$ OOT P This project is on hold.

T3.15.1 Undertake studies and outreach necessary to advance grade separation of Caltrain to become a “shovel ready” project and strongly advocate for adequate State, regional, and federal funding for design and construction of railroad grade separations.

Office of
Transportation
S $$$ OOT O Staff has been pursing additional studies tasked by the City Council and working with Rail Committee in finalizing these studies. In early 2023, after seeking input from various stakeholders like PAUSD, Stanford, PABAC the refinements to the underpass alternatives were completed. Staff is currently working on finalizing the preliminary geotechnical study. Staff worked with Rail Committee for the review of the Council Adopted evaluation criteria which was approved by City Council on June 5, 2023. Staff is now working with Rail Committee to identify additional studies needed to support the review of the
alternatives for selection of preferred alternative. Additionally, a Service Agreement with Caltrain has also been executed for early coordination and to perform the technical review.

T3.15.2 Conduct a study to evaluate the implications of grade separation on bicycle and pedestrian circulation.

Office of
Transportation
S $$ OOT O Staff has been pursing additional studies tasked by the City Council and working with Rail Committee in finalizing these studies. In early 2023, after seeking input from various stakeholders like PAUSD, Stanford, PABAC the refinements to the underpass alternatives were completed.. Staff is now working with Rail Committee to identify additional analysis needed to support the review of the alternatives for selection of preferred alternative

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T3.17.1 Complete a Palo Alto Avenue crossing study to identify potential near-term safety and accessibility improvements.

Office of
Transportation
S $$ OOT O A Noise Study was conducted that identified improvements at Palo Alto Avenue Crossing. The conceptual plan for the proposed improvements were approved by the City Council on June 19, 2023. Staff is now pursing procurement of the consultant services to finalize the design and assist in other permitting requirements.

T3.17.2 Work with Caltrain to ensure that the rail tracks are safe and secure with adequate fencing and barriers.

Office of
Transportation
S $$ OOT O The fencing project was previously completed. Quad Gates are required as part of High Speed rail called in its Environmental Impact Report. Staff is pursuing additional funding for safety improvements along railroad corridor in Palo Alto
T4.2.1 Periodically evaluate residential areas for traffic impacts and use the results of that evaluation to prioritize traffic calming measures.

Office of
Transportation
IP $$ OOT O Ongoing Program and staff evaluates request on first come first basis. For Crescent Park neighborhood, the PTC has approved to proceed with design of Final Improvements. Staff will be seeking approval from City Council in Oct 2023 and then proceed to design the permanent traffic calming improvements.

T4.4.1 Use landscaping and other improvements to establish clear “gateways” at the points where the Oregon Expressway,
University Avenue and Embarcadero Road transition from
freeways to neighborhoods.

Department of
Public Works
L $$$ PWE O This is an ongoing effort. There are no substantial actions to report at this time.

T5.1.1 Evaluate the need to update parking standards in the municipal code, based on local conditions, different users’ needs and baseline parking need. Allow the use of parking lifts for Office/R&D and multifamily housing as
appropriate.

Planning and
Development
Services and
Office of
Transportation
S $ PDS / LRP / CP / O O Additional recommendations will be presented along with the development of a commercial pilot process. Parking lifts are allowed for office, R&D and multifamily projects.

T5.1.2 Consider reducing parking requirements for retail and restaurant uses as a way to encourage new businesses and the use of alternative modes.

Planning and
Development
Services
M $ PDS / LRP / CP PC As noted last year, AB2097 eliminates parking requirements for most developments within 1/2 mile radius of train stations directly impacting both the University Avenue and California Avenue core commerial uses. Retail Study includes evaluation of parking supply and demand.

Goal T-4: Protect local streets that contribute to neighborhood character and provide a range of local transportation options.

Goal T-5: Encourage attractive, convenient, efficient and innovative parking solutions for all users.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T5.1.3 Work with stakeholders in each commercial center and employment district to monitor conditions and determine the appropriate timing for revisions to parking
requirements.

Planning and
Development
Services and
Office of
Transportation
M $ PDS / LRP / CP /OOP Work has not commenced. Retail study includes analysis and outreach about parking.

T5.1.4 Study the feasibility of unbundled parking for office, commercial, and multi-family residential developments
(including senior housing developments) that are well-
served by transit and demonstrated walking and biking
connections.

Planning and
Development
Services and
Office of
Transportation
S $ PDS / LRP / CP /OOP Work has not commenced. Retail study includes analysis about parking.

T5.1.5 Consider reducing parking requirements for multi- family uses as a way to encourage new multi-family housing and the use of alternative modes, where reduction in parking would not impact the neighborhood.

Planning and
Development
Services
S $ PDS / LRP / CP PC Reduction in parking requirements has been included under Housing Incentives Chapter (Title 18.14) of Municipal Code for GM / ROLM and El Camino Real Focus Area to address Housing Element programs 1.1A and 1.1B. Adjustments were made to parking requirements for El Camino Focus Area as per AB2097 (1 space/unit within ½ mile of Caltrain station) and for GM and ROLM Focus Areas (1 space per studio/ 1-bed, 1.5 spaces per 2- bed+).

Staff will continue exploration of parking reductions for multi family residential use in other zoning districts.

T5.2.1 Use technology to help identify parking availability and make it easy to pay any parking fees.

Office of
Transportation
S $$$ OOT O Staff and a consultant will present in 2023 options improved permit and fee payment options.

T5.2.2 Study and implement pricing strategies for public parking in commercial districts, taking into consideration both employee parking demand and the needs of retailers and
customers. Use pricing to encourage short term parking on street, long term parking in parking garages, and the use of alternative modes of transportation
Office of
Transportation
IP $$ OOT O Staff will present in Fall 2023 options for a pilot curb management pricing strategy in select Downtown parking facilities, on-street and in select city-owned parking lots.

T5.2.3 Implement Council-adopted recommendations from the parking management study for the Downtown area, which
address the feasibility of removing color- coded parking zones, and dynamic pricing and management policies to
prioritize short-term parking spaces closest to the
commercial core for customers, garage parking for
employees, and neighborhood parking for residents.

Office of
Transportation
S $$$ OOT O Staff will present in Fall 2023 options for a pilot curb management pricing strategy in select Downtown parking facilities, on-street and in select city-owned parking lots.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T5.4.1 Explore incentives to encourage privately initiated shared parking among individual property owners when
developments have excess parking that can be available
for other businesses to use.

Office of
Transportation
S $ OOT P Work has not commenced.

T5.8.1 Study the feasibility of retrofitting City-owned surface parking lots to implement best management practices for stormwater management and urban heat island
mitigation, including green infrastructure, permeable
pavement and reflective surfaces.

Department of
Public Works
S $$ ENV / PWE O Staff received a grant for stormwater management and are shifting focus on a park improvement to treat stormwater through a green stormwater infrastructure feature.

T5.8.2 Identify incentives to encourage the retrofit of privately owned surface parking areas to incorporate best
management practices for stormwater management and
urban heat island mitigation as well as incentives for the provision of publicly accessible pavement and reflective surfaces.

Department of
Public Works
S $ ENV / PWE O This is an ongoing program, no updates to report at this time.

T5.8.3 Update City requirements regarding trees and other landscaping that capture and filter stormwater within
surface parking lots to take advantage of new technology.

Department of
Public Works
R $ ENV / PS O This is an ongoing program. There are no substantial actions to report at this time.

T5.11.1 Coordinate with neighborhood groups and local businesses and other stakeholders to evaluate the need for a
residential parking permit program in areas without
existing programs.

Office of
Transportation
S $$ OOT O This is an ongoing program. There are no substantial actions to report at this time.

T5.12.1 Work with employers, merchants, schools, and community service providers, to identify ways to provide more bicycle parking, including e-bike parking with charging stations, near existing shops, services and places of employment.

Office of
Transportation
R $ OOT O This is an ongoing program via 311 requests for parking in the public Right-of-Ways and through coordination with the Safe Routes to School program.

T5.12.2 Install secure electronic bike lockers such as the BikeLink system, at high theft locations, including transit stations and parking garages.

Office of
Transportation
M $$ OOT P Work has not commenced.

T5.12.3 Assess the need to provide additional bicycle parking in City-owned parking lots and rights-of-way.

Office of
Transportation
M $$ OOT O This is an ongoing program via 311 requests for parking in the public Right-of-Ways.

Goal T-6: Provide a safe environment for motorists, pedestrians, and bicyclists on Palo Alto streets.

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Item 5
Attachment A - Comp Plan
Implementation Program Status,
2023

Item 5: Staff Report
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T6.1.1 Follow the principles of the safe routes to schools program to implement traffic safety measures that focus on Safe Routes to work, shopping, downtown, community
services, parks, and schools, including all designated school commute corridors.

Office of
Transportation
R $$ OOT O Bicycle network planning has commenced with the current update of the Bicycle and Pedestrian Transportation Plan. In addition, a roadway safety plan, Safer Palo Alto, funded by a federal grant and currently under development, will identify systemic transportation network changes to improve safety for all road users.

T6.1.2 Develop, distribute and aggressively promote maps and apps showing safe routes to work, shopping, community
services, parks and schools within Palo Alto in
collaboration with stakeholders, including PAUSD, major employers, TMAs, local businesses and community
organizations.

Office of
Transportation
IP $$ OOT O This is an ongoing program. A Palo Alto bike route map is posted on the City website. School Walk and Roll Maps and the Walk and Roll to Libraries Map are updated as needed.

T6.1.3 Address pedestrian safety along Alma Street between Embarcadero Road and Lytton Street.

Office of
Transportation
S $$ OOT P Work has not commenced.

T6.1.4 Address pedestrian safety on shared-use paths through the use of signs, pavement markings, and outreach to
users, encouraging them to be safe and courteous.

Office of
Transportation
R $ OOT O This is an ongoing program, no updates to report at this time.

T6.2.1 Regularly collect severity and location data on roadway collisions for all modes of travel, including fatalities and severe injuries, and use this data to make roadway design decisions. In collaboration with Santa Clara County,
develop an up-to-date, public database for this
information
Office of
Transportation
R $$ OOT O This is an ongoing program via the County's collision database.

T6.4.1 Consider the Adopted School Commute Corridors Network and adopted “Walk and Roll” maps when reviewing
development applications and making land use and
transportation planning decisions. Incorporate these
requirements into City code when feasible.

Office of
Transportation
R $ OOT O This is an ongoing program, no updates to report at this time.

T6.4.2 Establish standards and procedures for maintaining safe bicycling routes, including signage for warnings and
detours during construction projects.

Office of
Transportation
IP $ OOT O The Traffic Control Plan Guidelines were updated in 2016 and are regularly reviewed.

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T6.4.3 In collaboration with PAUSD, provide adult crossing guards at school crossings that meet established warrants.

Police Department R $$ PD O This is an ongoing program, no updates to report at this time.

T6.6.1 Periodically evaluate safety on roadways and at
intersections and enhance conditions through the use of signal technology and physical changes. Consider the
construction of traffic circles for improved intersection safety
Office of
Transportation
R $$$ OOT O This is an ongoing program, no updates to report at this time.

T6.6.2 Continue to provide educational programs for children and adults, in partnership with community-based educational organizations, to promote the safe walking and safe use of bicycles, including the City-sponsored bicycle education programs in the public schools and the bicycle traffic
school program for juveniles.

Office of
Transportation
R $$ OOT O This is an ongoing program, no updates to report at this time.

T6.6.3 Work with PAUSD and employers to promote roadway safety for all users, including motorized alternatives to cars and bikes such as mopeds and e-bikes, through
educational programs for children and adults.

Office of
Transportation
R $$ OOT O This is an ongoing program, no updates to report at this time.

T6.6.4 Complete a mobility and safety study for downtown Palo Alto, looking at ways to improve circulation and safety for all modes.

Office of
Transportation
M $$ OOT PC The City has begun the development of a new Safe Streets for All (SS4A) Safety Action Plan in August of 2023.

This is funded by a federal grant, the plan will identify systemic transportation network changes to improve safety for all road users.

Similarly, the University Avenue streetscape improvement project led by Public Works Department plans to reduce congestion and improve street safety.

T6.6.5 Identify and construct safety improvements for pedestrian underpasses, including on Embarcadero Road.

Office of
Transportation
L $$$ OOT P Work has not commenced.

T6.6.6 Improve pedestrian crossings by creating protected areas and better pedestrian and traffic visibility. Use a toolbox including bulb outs, small curb radii, high visibility
crosswalks, and landscaping.

Office of
Transportation
R $$$ OOT O This is an ongoing program. New high visibility crossing imrpvoments (RRFB) was installed at Alma Street and Everett Avenue. In addition, several RRFB's were updgraded and replaced with new equipment. Staff is also planning to add RRFB at University Avenue and Crescent Avenue.

T6.6.7 Establish a program to educate residents to keep sidewalks clear of parked cars, especially on narrow local streets in neighborhoods with rolled curbs. Survey for compliance
annually.

Office of
Transportation
M $$ OOT P Work has not commenced. A rolled curb parking flyer is available on the City website.

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T6.7.1 Evaluate the performance of safety improvements and identify methods to encourage alternative transportation modes.

Office of
Transportation
R $ OOT O This is an ongoing program, no updates to report at this time.

T7.1.1 Expand transportation opportunities for transit- dependent riders by supporting discounts for taxi fares, rideshare services, and transit, by coordinating transit systems to be shared by multiple senior housing
developments, and by maintaining a database of volunteer drivers, and other transit options.

Office of
Transportation
M $$ OOT PC The on-demand transit service vendor is currently operating electric and hybrid vehicles in Palo Alto and offers fare discounts for the disabled, seniors, youth, low-income, and wheelchair users. This pilot project provides transit service to most of Palo Alto on weekdays from 8am to 6pm. While staff seek additional grant funding to expand service hours, long-term funding of this service has not been identified.

T7.1.2 Coordinate with social service agencies and transit agencies to fill gaps in existing transportation routes and services accessible to transit-dependent riders no matter their means and design new bus routes that enable them
to access those services.

Office of
Transportation
R $$$ OOT O The on-demand transit service vendor is currently operating electric and hybrid vehicles in Palo Alto and offers fare discounts for the disabled, seniors, youth, low-income, and wheelchair users. This pilot project provides transit service to most of Palo Alto on weekdays from 8am to 6pm. While staff seek additional grant funding to expand service hours, long-term funding of this service has not been identified.

T7.1.3 Pursue expanded evening and night time bus service to enhance mobility for all users during off-peak times.

Office of
Transportation
R $ OOT P This program is unlikely to be pursued with VTA's 2024 New Service Plan as post-pandemic transit funding is limited.

T8.1.1 Continue to participate in regional efforts to develop technological solutions that make alternatives to the
automobile more convenient.

Office of
Transportation
R $ OOT O The Dumbarton Forward Project is in construction by AC Transit.

T8.3.1 Advocate for provision of a new southbound entrance ramp to Highway 101 from San Antonio Road, in
conjunction with the closure of the southbound Charleston Road on-ramp at the Rengstorff Avenue interchange in
Mountain View.

Office of
Transportation
S $ OOT O With grant funding, VTA is leading work effort to identify and analyze project alternatives. Public engagement is forthcoming.

Goal T-7: Provide mobility options that allow people who are transit dependent to reach their destinations.

Goal T-8: Influence the shape and implementation of regional transportation policies and technologies to reduce traffic congestion and greenhouse gas emissions.

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T8.7.1 Work with regional transportation providers to improve connections between Palo Alto and the San Francisco
International Airport and Norman Y. Mineta San Jose
International Airport.

Office of
Transportation
R $ OOT P Work has not commenced.

T8.8.1 Identify and improve bicycle connections to/from neighboring communities in Santa Clara and San Mateo
counties to support local trips that cross city boundaries.

Also advocate for reducing barriers to bicycling and
walking at freeway interchanges, expressway
intersections, and railroad grade crossings.

Office of
Transportation
IP $$$ OOT O This will be addressed in the ongoing Bicycle and Pedestrian Transportation Plan Update that is expected to conclude in 2025.

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

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Planning and
Development
Services
M $$ PDS / CP P Work has not commenced.

B4.2.2 Consider planning, regulatory, or other incentives to encourage property owners to include smaller office spaces in their buildings to serve small businesses, non- profit organizations, and independent professionals.

Planning and
Development
Services
M $ PDS / CP P Work has not commenced.

B4.6.2 Study the overall viability of ground-floor retail requirements in preserving retail space and creating an active street environment, including the types of locations where such requirements are most effective.

Planning and
Development
Services
M $$ PDS / CP PC City received an administrative draft of a retail study in late August 2022; the scope
of the work was expanded to dovetail
with City Manager's Office Street Sense
program (June 2023). A check in with the
Planning and Transportation Commission
(PTC) is on 10/25/2023. The reports will
be presented to the PTC and to City
Council in summer of 2024.

B5.1.2 Improve design guidelines to reduce ambiguity and more clearly articulate compatibility principles to the business community and to the public.

Planning and
Development
Services
M $$ PDS / CP PC Objective Design Standards for housing development projects and for single-
family homes have been approved in
2022. On- going improvements will be
made as needed. SOFA CAP zone
regulations will be updated in 2024 to
include objective design standards.

B5.1.4 Revise zoning and other regulations as needed to encourage the revitalization of aging retail structures and areas. Encourage the preservation of space to accommodate small, independent retail businesses and professional services.

Planning and
Development
Services
R $$ PDS / CP P No zoning regulation changes are
proposed at this time.

B7.2.2 Study the feasibility of a “transfer of development rights” (TDR) program and other measures that would provide greater development flexibility within Stanford Research Park without creating significant adverse traffic impacts or increasing the allowable floor area.

Planning and
Development
Services
M $$ PDS / CP P Work has not commenced.

Comp Plan Pending and Partially Complete Implementation Programs, 2023

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Community
Services
Department
M $ CSD P No change from previous year reporting.

A formal program to facilitate corporate
support has not been established.

Corporate sponsorships for special events
have been received.

C2.2.1 Establish performance review criteria for City employees that consider the quality of service provided.

Human Resources
Department
M $ HR PC This task has been partially completed.

C4.1.2 Encourage dedication of new land for parks through regulations and incentives for new development and programs to solicit bequests of land within the city.

Community
Services
Department and
Planning and
Development
M $$ CSD / PDS / CP P Work has not commenced.

C4.1.3 Pursue opportunities to create linear parks over the Caltrain tracks in the event the tracks are moved below grade.

Community
Services
Department and
Planning and
Development
Services
L $$$ CSD / PDS / CP P Work has not commenced.

C4.1.4 Explore ways to dedicate a portion of in-lieu fees towards acquisition of parkland, not just improvements.

Community
Services
Department and
Planning and
Development
Services
M $ CSD / PDS / CP/
CAO
P Work has not commenced.

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City Manager’s
Office
M $$ CMO PC No change from last year's reporting. Staff continues to send a digital welcome
message to new residents and is finalizing
a new welcome message that will be both
digital and print formats. With the launch
of the City's new website, there was a
comprehensive look at resident related
information. The website includes a
digital welcome packet and new resident
resources are now available both at
www.cityofpaloalto.org/resident s and a
new "My Neighborhood" map that
highlights services available near a
resident's home at:
https://www.cityofpaloalto.org/
Residents/My-Neighborhood
L1.6.1 Review regulatory tools available to the City and identify actions to enhance and preserve the livability of residential neighborhoods and the vitality of commercial and employment districts, including improved code enforcement practices.

Planning and
Development
Services
S $$ PDS / Data
Team
PC Council adopted a revised ordinance and
administrative penalties to improve the
gas blower enforcement program in June
2023.

L2.4.2 Allow housing at Stanford Shopping Center, provided that adequate parking and vibrant retail is maintained and no reduction of retail square footage results from the new housing.

Planning and
Development
Services
S $ PDS / LRP PC As part of the Housing Element update, a proposed program is included to engage
in discussions with Stanford Shopping
Center in preparation for the next
Housing Element Cycle in 2031. See
Program 1.5 in the adopted 2023-
2031 Housing Element.

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Explore multi- family housing elsewhere in Stanford Research Park and near the SUMC.

Planning and
Development
Services
S $ PDS / LRP PC Stanford owned parcels along El Camino Real have been included in the housing
sites inventory. Staff continues to explore
possibilities of multi family housing in
Research Park area. Residential use in the
Research Park will no longer require a
Conditional Use Permit (CUP), see
Program 1.5 in the adopted 2023-2031
Housing Element.

L2.4.5 Update the municipal code to include zoning changes that allow a mix of retail and residential uses but no office uses. The intent of these changes would be to encourage a mix of land uses that contributes to the vitality and walkability of commercial centers and transit corridors.

Planning and
Development
Services
S $ PDS / LRP / CP PC The Housing Element 2023-2031 includes a new program to lower commercial
office floor area at strategic locations.

Additionally a retail study is underway by
consultant team to ease restrictions on
retail use and encourage a mix of land
uses. Staff plans to present the findings of
this study to the Planning and
Transportation Commission (PTC) in
spring 2024.

L2.4.6 Explore changing the Transfer of Development Rights (TDR) ordinances for both buildings of historic significance and for seismic retrofits so that transferred development rights may only be used for residential capacity.

Planning and
Development
Services
M $ PDS / LRP / CP P This program has not been explored yet.

The project commencement is pending
the availability of resources.

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Planning and
Development
Services
M $$ PDS / LRP PC Council passed an ordinance that
expanded Tenant Relocation Assistance to
rental units on properties with 10 or more
units. Council also passed a security
deposit limit of 1.5x the monthly rent for
unfurnished rental units. Council created
a local just cause eviction protection
ordinance that extends eviction
protection to more rental units than state
law. Staff remains underway to complete
all other Council directed renter
protection policies alongside and in
concert with implementation of the 2023
– 2031 6th Cycle Housing Element. This
includes establishment of a Rental
Registry Program and a review and
assessment of the implementation of
existing renter protection policies.

L2.8.2 Develop and implement a system to inventory the characteristics of existing housing units and track changes in those characteristics on a regular basis.

Make the information publicly available.

Planning and
Development
Services
M $$ PDS / LRP P Work has not commenced.

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Program
Number
Program Text
Lead
Department
Priority
S= Short (< 5 years),
M= Medium (5‐10
years), L= Long (>10
years), IP= In
Progress, R=
Routine
Level of
Effort
$=Small,
$$=Medium
$$$=Substantial
Effort
Department /
Division
2023 Status
C= Complete,
PC= Partially
Complete, O=
Ongoing, P=
Pending
Staff Comments September 2023
L4.2.3 Explore and potentially support new, creative and innovative retail in Palo Alto. Planning and Development
Services
S $$ PDS / CP PC A number of new initiatives were
launched in 2023 to encourage retail in
Palo Alto. In August of 2023, City Council
adopted the Comprehensive Economic
Development Strategy plan developed by
Streetsense to support economic vitality
of Palo Alto. Staff is also working on
making recommendations to change the
existing Interim Retail Preservation
Ordinance to ease restrictions on existing
and new retail. Additionally, Council
approved the Car free Streets program in
November 2023 with some implementing
actions to support new creative retail in
Palo Alto.

L4.4.3 Collaborate with merchants to enhance the appearance of streets and sidewalks within all Centers. Encourage the formation of business improvement districts and undertake a proactive program of maintenance, repair, landscaping and enhancement.

Department of
Public Works
R $$ UF PC Public Works Department along with
Office of Transportation has started
working on the University Avenue and
California Avenue streetscape
improvement projects to enhance
economic vitality of the two streets. The
goal of these projects is to reduce
congestion, maximize pedestrian and
bicycle use, creation of inviting outdoor
dining/patio places, installing gateway
and wayfinding signages, and develop
branding programs, among other things.

L4.5.1 Revise zoning and other regulations as needed to encourage the preservation of space to accommodate small businesses, start-ups and other services.

Planning and
Development
Services
M $$ PDS / LRP / CP P Work has not commenced.

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Planning and
Development
Services
M $ PDS / LRP / CP P Work has not commenced.

L.4.6.1 Explore increasing hotel FAR from 2.0 to 3.0 in the University Avenue/Downtown area and 2.5 in areas outside of Downtown.

Planning and
Development
M $$ PDS / CP P Work has not commenced.

L4.9.2 Explore adding additional Floor Area Ratio (FAR) for retail at Stanford Shopping Center.

Planning and
Development
M $ PDS / CP P Work has not commenced.

L4.10.2 Create regulations for the California Avenue area that encourage the retention or rehabilitation of smaller buildings to provide spaces for existing retail, particularly local, small businesses.

Planning and
Development
Services
M $$ PDS / LRP / CP P Project commencement is pending the availability of resources.

L6.3.1 Develop guidelines for bird-friendly building design that minimizes hazards for birds and reduces the potential for collisions.

Planning and
Development
Services
M $$ PDS / CP PC Work on developing bird friendly design guidelines is underway and is expected to
be completed by June 2024. For all
applicable projects staff provides
guidance by following best practices for
bird-friendly design.

L7.1.2 Reassess the Historic Preservation Ordinance to ensure its effectiveness in the maintenance and preservation of historic resources, particularly in the University Avenue/Downtown area.

Planning and
Development
Services
M $ PDS / CP P The ordinance needs to be reassessed
since it does not protect properties found
eligible for National and California
Register. Work has not commenced on
this program.

L7.12.1 Review parking exceptions for historic buildings in the Zoning Code to determine if there is an effective balance between historic preservation and meeting parking needs.

Planning and
Development
Services
L $ PDS / CP P Work has not commenced.

L9.1.1 Evaluate existing zoning code setback requirements to ensure they are appropriate for scenic routes.

Planning and
Development
Services
L $ PDS / CP P Work has not commenced.

L9.6.1 Analyze existing neighborhoods and determine where publicly accessible shared, outdoor gathering spaces are below the citywide standard. Create new public spaces, including public squares, parks and informal gathering spaces in these neighborhoods.

Planning and
Development
Services
M $$$ PDS / CP P Work has not commenced.

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Planning and
Development
Services
R $ PDS / CP P Work has not commenced.

L10.3.2 Work with the airport to pursue opportunities to enhance the open space and habitat value of the airport. These include:

1. Maintaining native grasses;

2. Reconstructing levees to protect the airport from sea level rise while enhancing public access and habitat conservation; and

3. Evaluating the introduction of burrowing owl habitat.

This program is subject to federal wildlife hazard requirements and guidelines for airports
Community
Services
Department and
Department of
Public Works
R $$ CSD / PWD P Work has not commenced.

N1.1.1 Develop Comprehensive Resource Conservation Plans for the Pearson Arastradero Preserve, Esther Clark Preserve, and Foothills Park to steward the protection of local ecosystems.

Community
Services
Department
S-M $$$ CSD P No change, conservation Plans for
Pearson Arastradero, Esther Clark, and
Foothills Nature Preserves are currently
not funded in the Capital Improvement
Plan.

N1.4.2 Explore the feasibility of expanding the use of overlay tools such as the Site and Design (D) Review Combining District or similar development review and restriction tools to protect special status species and their habitats from development.

Planning and
Development
Services
M $$ PDS / CP P Work has not commenced.

N1.7.4 Review and map existing easements and maintenance roads for potential trails and trail connections.

Community
Services
Department
S $$ CSD P Work has not commenced.

N2.10.2 As part of the update of the Tree and Landscape Technical Manual, consider expanding tree protections to include additional mature trees and provide criteria for making site-specific determinations of trees that should be protected.

Planning and
Development
Services and
Department of
Public Works
S $ PDS / CP /UF PC The Tree and Landscape Technical Manual is in the process of being finalized and will
be submitted to the City Manager for
review and approval in FY24. Expanded
protections for mature trees were
included in approved changes to Title 8 of
Palo Alto Municipal Code.

N2.11.1 Develop a transparent and publicly accessible street tree removal and replacement schedule.

Department of
Public Works
M $ PS / UF P There are no substantial actions to report at this time.

N2.12.1 Explore ways to leverage the fact that Palo Alto’s urban forest alleviates climate change by capturing and storing carbon dioxide.

Department of
Public Works
M $ ENV / PS / UF P There are no substantial actions
to report at this time.

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Review existing tree planting guidelines to ensure they achieve these objectives.

Department of
Public Works
S $$ PS / UF PC The South Palo Alto Tree Planting
Program continues, there are no
substantial actions to report at this time.

N2.13.2 Provide on-going education for City staff, residents, and developers regarding landscape, maintenance, and irrigation practices that protect the urban forest and wildlife species.

Department of
Public Works
R $ PS / UF P There are no substantial actions to report at this time. Efforts to provide education
regarding landscape, maintenance, and
irrigation practices that protect the urban
forest and wildlife species is scheduled to
begin in FY24 as part of the Tree and
Landscape Technical Manual update
outreach.

N2.13.4 Cooperate with the Palo Alto Unified School District, Stanford University, Caltrain, Caltrans, Pacific Gas & Electric, and other public and private entities to ensure that their tree planting, tree removal, and maintenance practices are consistent with City guidelines.

Department of
Public Works
R $ PS / UF P There are no substantial actions to report at this time.

N3.3.1 Update the Stream Corridor Protection Ordinance to explore 150 feet as the desired stream setback along natural creeks in open space and rural areas west of Foothill Expressway. This 150-foot setback would prohibit the siting of buildings and other structures, impervious surfaces, outdoor activity areas and ornamental landscaped areas within 150 feet of the top of a creek bank. Allow passive or intermittent outdoor activities and pedestrian, equestrian and bicycle pathways along natural creeks where there are adequate setbacks to protect the natural riparian environment. Within the setback area, provide a border of native riparian vegetation at least 30 feet along the creek bank.

The update to the Stream Protection Ordinance should establish:

1. Design recommendations for development or redevelopment of sites within the setback, consistent with basic creek habitat objectives and significant net improvements in the condition of the creek.

2. Conditions under which single-family property and existing development are exempt from the 150-foot setback

3. Appropriate setbacks and creek conservation measures for undeveloped parcels.

Planning and
Development
Services
S $$ PDS / CP P Work has not commenced. A consultant
has been identified to commence the
task.

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Program
Number
Program Text
Lead
Department
Priority
S= Short (< 5 years),
M= Medium (5‐10
years), L= Long (>10
years), IP= In
Progress, R=
Routine
Level of
Effort
$=Small,
$$=Medium
$$$=Substantial
Effort
Department /
Division
2023 Status
C= Complete,
PC= Partially
Complete, O=
Ongoing, P=
Pending
Staff Comments September 2023
N3.3.2 Examine the development regulations of the Stream Corridor Protection Ordinance, with stakeholder involvement to establish appropriate setback requirements that reflect the varying natural and channelized conditions along creeks east of Foothill Expressway. Ensure that opportunities to provide an enhanced riparian setback along urban creeks as properties are redeveloped or improved are included in this evaluation.

Planning and
Development
Services
S $$ PDS / CP P A consultant has been identified to
commence the task.

N3.6.1 Review and update the Grading Ordinance to ensure that it adequately protects creeks from the erosion and sedimentation impacts of grading.

Department of
Public Works
M $$ ENV PC Target adoption for Stormwater
ordinance is in April 2024.

N3.8.1 Work with the SCVWD to develop a maintenance, restoration and enhancement improvement program that preserves flood protection while preserving riparian habitat, and identifies specific stretches of corridor to be restored or daylighted, standards to be achieved, and sources of funding.

Include provisions for tree and vegetation planting to enhance natural habitat and shade cover.

Department of
Public Works
M $$ ENV / PS PC Limited progress has been made, except for the work on the North Ventura
Coordinated Area Plan.

N4.10.1 Monitor and implement practices for reducing water pollution. Examples include state-of-the- art best management practices (BMPs), land use planning approaches, and construction of modern stormwater management facilities.

Department of
Public Works
R $$$ ENV PC Stormwater ordinance anticipated to be
adopted in April 2024
N4.10.3 Implement swift and rigorous spill response, cleanup, and follow-up investigation procedures to reduce the impacts of toxic spills on the city’s creeks and San Francisco Bay.

Department of
Public Works
R $$ ENV PC Stormwater ordinance
anticipated to be adopted in April 2024
N4.10.4 Increase monitoring and enforcement of existing prohibitions on materials and practices known to impact local water quality, such as use of copper, in the design and construction industries.

Department of
Public Works
R $ ENV PC Stormwater ordinance anticipated to be
adopted in April 2024
N4.11.1 Evaluate neighborhoods where parking controls may hinder street sweeping and recommend any changes that are needed.

Department of
Public Works
M $ ENV /PS P There are no substantial actions to report at this time.

N4.12.2 Revise the City’s Tree and Landscape Technical Manual to include stronger requirements for least-toxic practices in the landscape permitting process.

Department of
Public Works
S $ ENV /PS / UF PC There are no substantial actions to report at this time. The updated Tree and
Landscape Technical Manual is expected
to be released in 2024.

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Department of
Public Works
R $ ENV PC Stormwater ordinance anticipated to be
adopted in April 2024
N4.17.3 Investigate ways to reuse non-traditional water sources including recycled, gray, black and storm water.

City of Palo Alto
Utilities
R $ UT PC Council accepted the Northwest County
Recycled Water Strategic Plan in 2020.

The 2020 S/CAP update is underway, and
a key action is to develop a plan for
implementing a One Water portfolio. The
One Water planning process kicked off in
July 2022, and this approach to integrated
water resource planning will take a
broader, more comprehensive look at
water supply options including recycled
water and other non- traditional water
sources.

N5.2.1 Promote understanding of the impacts of extended idling on air quality, for residents, auto- dependent businesses, and schools.

Planning and
Development
Services
M $ PDS / CP P Work has not commenced.

N5.2.2 Consider adopting and enforcing penalties for drivers that idle for longer than 3- 5 minutes.

Office of
Transportation
M $ OOT P Work has not commenced.

N6.3.2 Evaluate the feasibility of adopting noise criteria in the purchase of new City vehicles and equipment.

Department of
Public Works
M $ PS P There are no substantial actions to report
at this time.

N6.3.3 Update the Noise Ordinance, as needed, to provide for clear interpretation of the regulations, to review the effectiveness of existing standards, and to ensure that regulations address contemporary issues.

Planning and
Development
Services
S $ PDS / CP PC The Council adopted amendments to
Noise Ord to enable electrification
equipments placement near residential
property lines
N6.7.1 Update noise impact review procedures in the Noise Ordinance and the Zoning Code to address appropriate requirements for analysis and thresholds for impacts on residential land uses and publicly-owned conservation land.

Planning and
Development
Services
S $ PDS / CP PC The Council adopted amendments to
Noise Ord to enable electrification
equipments placement near residential
property lines

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Planning and
Development
Services
M $ PDS / CP PC The Council adopted amendments to
Noise Ord to enable electrification
equipments placement near residential
property lines. Noise Ord adjusted to
improve gas leaf blower enforcement
program
N8.2.1 Periodically update the S/CAP consistent with the update schedule in the approved S/CAP; this update shall include an updated greenhouse gas inventory and updated short, medium, and long-term emissions reduction goals.

Office of
Sustainability
M $$ OS PC In June 2023, the 2022 Sustainability and
Climate Action Plan was adopted, the
Comprehensive Plan Environmental
Impact Report Addendum: Update to the
Sustainability and Climate Action Plan was
certified, and Council accepted the 2023-
2025 S/CAP Workplan. Staff are working
on the 2022 Greenhouse Gas Inventory,
which will be brought to Council in April
2024.

S1.3.2 Support programs such as the Department of Housing and Urban Development’s Good Neighbor Next Door, which incentivizes home purchase for first responders with discounts.

Planning and
Development
Services
R $ PDS / LRP P Work has not commenced.

S1.5.4 Continue to support and encourage participation in Police Department programs to introduce youth to the importance and benefits of local law enforcement.

Police Department R $ PD P The School Resource Officer (SRO) program has not resumed. Patrol
resources respond to education requests
as calls for service allow.

S1.9.1 Develop an Infrastructure Master Plan that projects the future needs of streets, underground utilities, and all City assets and plans for the incorporation of new technology that improves efficiency and effectiveness.

Department of
Public Works
S $$$ PWE PC The Emergency Operations Plan (EOP) is
available on the City’s website.

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City of Palo Alto
Utilities
S $$ UT PC This is still a work in progress. Initial
discussions with California Independent
System Operator (CAISO) have been
undertaken. City will submitted a request
to CAISO for consideration of a second
electricity transmission corridor for the
2022-23 planning cycle. Finalizing a
contract for 3 years of outside consulting
support on second transmission corridor.

S2.6.3 Evaluate the TDR Ordinance so that transferred development rights may be used for residential development on the receiver sites.

Planning and
Development
Services
R $ PDS / CP P Work has not commenced.

S2.6.4 Study the possibility of revising the transfer of development rights program to encourage seismic retrofits.

Planning and
Development
Services
M $ PDS / CP P Work has not commenced.

S2.11.1 Review development standards applicable in areas susceptible to flooding from sea level rise, including east of Highway 101, West Bayshore and East Meadow Circle, the area east of San Antonio Road and north of East Charleston, and implement shoreline development regulations to ensure that new development is protected from potential impacts of flooding resulting from sea level rise and significant storm events. Regulations should be consistent with the Baylands Master Plan, as amended, and may include new shoreline setback requirements, limits on lot line adjustments to avoid the creation of vulnerable shoreline lots, and/or triggers for relocation or removal of existing structures based on changing site conditions and other factors.

Department of
Public Works
S $$ PDS / CP / PW P Work has not commenced
S2.11.2 Study appropriate restrictions on underground construction in areas outside of flood zones, as shown on Map S-5, to accommodate expected higher groundwater levels due to sea level rise and minimize consequent flooding of underground construction.

Department of
Public Works
S $ PDS / CP / PW P Work has not commenced

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Office of
Emergency
Services
R $ OES P Work has not yet commenced; loss of
staff positions impacts this effort. This
effort is not staffed. However, no train
related hazmat incidents have occurred in
this reporting period.

S3.12.2 Establish criteria for the installation of high security telecommunications technology in new local government projects.

City of Palo Alto
Utilities
M $ UT P The Utilities Department will provide an
update of the fiber expansion plan to
Council in November 2023. The update
will include project alignment with the
electric grid modernization project to
mitigate staffing resource constraint,
minimize community disruption, and
realize cost savings between fiber
expansion and grid modernization.

S3.12.3 Establish a wi-fi network that will be available to public safety responders and Emergency Service Volunteers in the event of power interruption during an emergency or disaster.

City of Palo Alto
Utilities and Office
of Emergency
Services
S $$ UT /OES P The Utilities Department will provide an update of the fiber expansion plan to
Council in November 2023. The update
will include project alignment with the
electric grid modernization project to
mitigate staffing resource constraint,
minimize community disruption, and
realize cost savings between fiber
expansion and grid modernization.

T1.2.1 Create a long-term education program to change the travel habits of residents, visitors, shoppers, and workers by informing them about transportation alternatives, incentives, and impacts. Work with the PAUSD and with other public and private interests, such as the Chamber of Commerce and Commuter Wallet partners, to develop and implement this program.

Office of
Transportation
R $ OOT P Council approved budget to hire
Transportation staff to work on S/CAP
projects. Recruitment for this position is
occuring in Fall of 2023.

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Require regular monitoring/reporting and provide for enforcement with meaningful penalties for non-compliance. The ordinance should also:
-
Establish a list of effective TDM measures that include transit promotion, prepaid transit passes, commuter checks, car sharing, carpooling, parking cash-out, bicycle lockers and showers, shuttles to Caltrain, requiring TMA membership and education and outreach to support the use of these modes.
-Allow property owners to achieve reductions by contributing to citywide or employment district shuttles or other proven transportation programs that are not directly under the property owner’s control.
-Provide a system for incorporating alternative measures as new ideas for TDM are developed.
-Establish a mechanism to monitor the success of TDM measures and track the cumulative reduction of peak hour motor vehicle trips. TDM measures should at a minimum achieve the following: reduction in peak hour motor vehicle trips, with a focus on single-occupant vehicle trips. Reductions should be based on the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category and size:
45 percent reduction in the Downtown district
35 percent reduction in the California Avenue area 30 percent reduction in the Stanford Research Park 30 percent reduction in the El Camino Real Corridor 20 percent reduction in other areas of the city
-Require new development projects to pay a Transportation Impact Fee for all those peak-hour motor vehicle trips that cannot be reduced via TDM measures. Fees collected would be used for capital improvements aimed at reducing vehicle trips and traffic congestion.
-Ensure a stable, sustained funding source to support implementation of TDM measures.

Office of
Transportation
S $ OOT PC Council approved budget to hire
Transportation staff to work on S/CAP
projects. Recruitment for this position is
occuring in Fall of 2023.

T1.2.5 Site City facilities near high-capacity transit and revise existing regulations, policies, and programs to encourage telecommuting, satellite office concepts, and work-at-home options.

Planning and
Development
Services, Office of
Transportation &
Human Resources
Department
R $ HR PC The City Hybrid policy was revised to
include the City Auditior findings. The
Executive Leadership Team will be
implementing additional revision to
support flexibility for the workforce upon
request and approval of their department
head. The revised remote work policy will
be effective in 2024.

T1.3.2 Use low-emission vehicles for the Palo Alto Free Shuttle and work with transit providers, including SamTrans and VTA, to encourage the adoption of electric, fuel cell or other zero emission vehicles. Also work with private bus and shuttle providers, delivery companies, and ride services.

Office of
Transportation
M $$$ OOT PC The on-demand transit service vendor is
currently operating electric and hybrid
vehicles in Palo Alto.

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Attachment B - Comp Plan Pending
and Partially Complete
Implementation Programs, 2023

Item 5: Staff Report
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97 Packet Pg. 109 of 333

Office of
Transportation
S $ OOT PC The on-demand transit service vendor is
currently operating electric and hybrid
vehicles in Palo Alto. While staff seek
grant funding to expand service hours,
long-term funding of this service has not
been identified.

Office of
Transportation
IP $$$ OOT P No change from previous year's reporting.

Project is on hold for long term. In the
long term, a Downtown Coordinated Area
Plan is needed to address this program.

T1.11.2 In collaboration with Caltrain and Stanford Research Park, pursue expansion of service to the California Avenue Caltrain Station and creation of an enhanced transit center at the Station, including connections to VTA bus service, the Palo Alto Free Shuttle, the Marguerite, and other private shuttles serving the Research Park.

Office of
Transportation
M $$$ OOT P No updates to report at this time. In the
long term, a California Ave Transit Center
plan is needed to address this program.

Office of
Transportation
IP $ OOT P Work has not commenced. Council
approved budget to hire Transportation
staff to work on Bicycle and Pedestrian
Transportation Plan projects. Recruitment
for this position is occuring in Fall of 2023.

T2.3.1 When adopting new CEQA significance thresholds for VMT for compliance with SB 743 (2013), adopt standards for vehicular LOS analysis for use in evaluating the consistency of a proposed project with the Comprehensive Plan, and also explore desired standards for MMLOS, which includes motor vehicle LOS, at signalized intersections.

Office of
Transportation
S $$ OOT P No updates to report at this time.

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Implementation Programs, 2023

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Office of
Transportation
S $ OOT P Methodologies for Multimodal Level of
Service (MMLOS) are neither standardized
nor widely used. Level of stress analysis of
the bicycle and pedestrian network is
anticipated in the current update of the
Bicycle and Pedestrian Transportation
Plan. This analysis will inform
development review by staff.

Office of
Transportation
R $$$ OOT P Work has not commenced. The Quarry
Road Extension is a future project that will
reduce transit travel time.

T3.10.4 Pursue extension of Quarry Road for transit, pedestrians and bicyclists to access the Palo Alto Transit Center from El Camino Real. Also study the feasibility of another pedestrian and bicycle underpass of Caltrain at Everett Street.

Office of
Transportation
M $$ OOT P This project is on hold.

T5.1.2 Consider reducing parking requirements for retail and restaurant uses as a way to encourage new businesses and the use of alternative modes.

Planning and
Development
Services
M $ PDS / LRP / CP PC As noted last year, AB2097 eliminates parking requirements for most
developments within 1/2 mile radius of
train stations directly impacting both the
University Avenue and California Avenue
core commerial uses.

Retail Study includes evaluation of parking
supply and demand.

T5.1.3 Work with stakeholders in each commercial center and employment district to monitor conditions and determine the appropriate timing for revisions to parking requirements.

Planning and
Development
Services and Office
of Transportation
M $ PDS / LRP / CP
/OOT
P Work has not commenced. Retail study
includes analysis and outreach about
parking.

T5.1.4 Study the feasibility of unbundled parking for office, commercial, and multi- family residential developments (including senior housing developments) that are well- served by transit and demonstrated walking and biking connections.

Planning and
Development
Services and Office
of Transportation
S $ PDS / LRP / CP
/OOT
P Work has not commenced. Retail study
includes analysis about parking.

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Planning and
Development
Services
S $ PDS / LRP / CP PC Reduction in parking requirements has been included under Housing Incentives
Chapter (Title 18.14) of Municipal Code
for GM / ROLM and El Camino Real Focus
Area to address Housing Element
programs 1.1A and 1.1B. Adjustments
were made to parking requirements for El
Camino Focus Area as per AB2097 (1
space/unit within ½ mile of Caltrain
station) and for GM and ROLM Focus
Areas (1 space per studio/ 1-bed, 1.5
spaces per 2-bed+).

Staff will continue exploration of parking
reductions for multi family residential use
in other zoning districts.

T5.4.1 Explore incentives to encourage privately initiated shared parking among individual property owners when developments have excess parking that can be available for other businesses to use.

Office of
Transportation
S $ OOT P Work has not commenced.

T5.12.2 Install secure electronic bike lockers such as the BikeLink system, at high theft locations, including transit stations and parking garages.

Office of
Transportation
M $$ OOT P Work has not commenced.

T6.1.3 Address pedestrian safety along Alma Street between Embarcadero Road and Lytton Street.

Office of
Transportation
S $$ OOT P Work has not commenced.

T6.6.4 Complete a mobility and safety study for downtown Palo Alto, looking at ways to improve circulation and safety for all modes.

Office of
Transportation
M $$ OOT PC The City has begun the development of a
new Safe Streets for All (SS4A) Safety
Action Plan in August of 2023.

This is funded by a federal grant, the plan
will identify systemic transportation
network changes to improve safety for all
road users.

Similarly, the University Avenue
streetscape improvement project led by
Public Works Department plans to reduce
congestion and improve street safety.

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Office of
Transportation
L $$$ OOT P Work has not commenced.

T6.6.7 Establish a program to educate residents to keep sidewalks clear of parked cars, especially on narrow local streets in neighborhoods with rolled curbs.

Survey for compliance annually.

Office of
Transportation
M $$ OOT P Work has not commenced. A rolled curb
parking flyer is available on the City
website.

T7.1.1 Expand transportation opportunities for transit- dependent riders by supporting discounts for taxi fares, rideshare services, and transit, by coordinating transit systems to be shared by multiple senior housing developments, and by maintaining a database of volunteer drivers, and other transit options.

Office of
Transportation
M $$ OOT PC The on-demand transit service vendor is
currently operating electric and hybrid
vehicles in Palo Alto and offers fare
discounts for the disabled, seniors, youth,
low-income, and wheelchair users. This
pilot project provides transit service to
most of Palo Alto on weekdays from 8am
to 6pm.

While staff seek additional grant funding
to expand service hours, long-term
funding of this service has not been
identified.

T7.1.3 Pursue expanded evening and night time bus service to enhance mobility for all users during off- peak times.

Office of
Transportation
R $ OOT P This program is unlikely to be pursued
with VTA's 2024 New Service Plan as post-
pandemic transit funding is limited.

T8.7.1 Work with regional transportation providers to improve connections between Palo Alto and the San Francisco International Airport and Norman Y. Mineta

Office of
Transportation
R $ OOT P Work has not commenced.

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

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3.2, 3.3, 4.2, 4.4
A. Amend the Comprehensive Plan and zoning districts as needed for properties identified to meet the City’s RHNA obligations. The amendments include changes to allow increased residential densities shown in Appendix D in developments and relevant development standards to accommodate increased density, and modifications to allowable uses to permit multi-family residential uses where it is not currently allowed. Examples of possible changes include adjustments to building height, lot coverage, floor area ratios, ground floor landscaping requirement, and parking, as discussed in Chapter 4, Analysis of Land Use Controls.

The rezone/upzoning shall include the following provisions of Government Code Section 65583.2(h) and (i) for sites
accommodating lower incomes: (1) By-right development of multi-family developments in which 20 percent or more of units are affordable to lower income households and no subdivision is needed; (2) Accommodation of at least 16 units per site; (3) Minimum density of 20 units per acre; (4) At least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites: allow 100 percent residential use, and require that residential use occupy at least 50 percent of the total floor area of a mixed-use project.

The rezoning includes the following requirements for these Stanford-owned
properties:

The City will amend the
Comprehensive Plan or zoning
designation of 291 properties
located in commercial, industrial or
residential zoning districts that
combined will generate a realistic
yield for 5,537 housing units.

Complete by January 31,
2024
Complete
A (i) For the housing opportunity site located at the corner of Pasteur Drive and Sand Hill Road and the adjoining property at 1100 Welch Road, as an alternative to the State Density Bonus law, amend zoning regulations to allow approximately net new 425 units up to 85 feet in height; redevelopment of the Welch Road property shall comply with the replacement housing provisions of the Housing Crisis Act, which will substantially protect tenants from displacement.

Same as above Complete by January 31,
2024
Complete
A (ii) For the housing opportunity site located at 3128 El Camino Real (McDonald’s), as an alternative to the State Density Bonus law, amend zoning regulations to allow at least 144 housing units with a maximum height of 50 feet nearest El
Camino Real and transitioning taller away from the street to minimize a wall effect; allow a minimum of 315 housing units if combined with an adjacent property.

Same as above Complete by January 31,
2024
Complete

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Attachment C - 2023-2031 Housing
Element Implementation Program,
2023

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status A (iii) For the housing opportunity site located at 3300 El Camino Real, as an alternative to the State Density Bonus law, allow up to 200 housing units, up to a 1.4:1 floor area ratio (FAR) with a 20% inclusionary housing requirement consistent with the City’s Planned Home Zoning process; commercial office approved or permitted on this property is in addition to the floor area allowed for the future housing
project.

Same as above Complete by January 31,
2024
Complete
PROGRAM 1.1 Adequate Sites
Program
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 3.3, 4.2, 4.4
B Rezone ROLM and GM zoned properties to allow multi-family residential housing with a density of 90 dwelling units per acre for those properties nearest Bayshore Freeway and generally bounded by East Charleston Road and Loma Verde Avenue. This action will require additional changes to the related
development standard to accommodate higher density
development. Examples of specific changes to development standards are discussed in Chapter 4, Analysis of Land Use Controls.

The City will rezone approximately
146 sites in the designated area,
including the already identified
housing inventory sites, to allow
for development at 90 dwelling
units per acre.

Complete by January 31,
2024
Complete
PROGRAM 1.1 Adequate Sites
Program
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 3.3, 4.2, 4.4
C Maintain an updated inventory of housing sites and actively promote sites available for lower- and moderate-income housing development to potential developers, private and non-profit organizations, and other interested persons. Post information on the City’s website and update as necessary to maintain accurate information.

Support the development of 1,556
units for very-low income, 896
units for low income, 1,013 units
for moderate income, and 2,621
above-moderate households
during the planning period.

Post information on the
City’s website by January
2024 and update annually,
or more often if needed.

Partially Complete
PROGRAM 1.1 Adequate Sites
Program
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 3.3, 4.2, 4.4
D Maintain an updated list of residential housing projects that have been submitted, approved, and denied throughout the housing cycle.

Support the development of 1,556
units for very-low income, 896
units for low income, 1,013 units
for moderate income, and 2,621
above-moderate households
during the planning period.

Post information on the
City’s website by January
2024 and update annually,
or more often if needed.

Partially Complete
PROGRAM 1.1 Adequate Sites
Program
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 3.3, 4.2, 4.4
E Provide technical assistance and information on parcels available for lower-income developments to private or non-profit housing developers. Technical assistance includes land development counseling by staff planners.

Support the development of 1,556
units for very-low income, 896
units for low income households
during the planning period.

Develop technical
assistance program by
June 2024 and set/publish
regular hours for
assistance on the City’s
website.

Partially Complete
PROGRAM 1.2 Site Inventory
Monitoring
Program
PDS
General Fund
Goals: 3 Policies:

3.2 A Maintain an updated inventory of residential housing developments that have been submitted, approved and denied.

Management of site inventory
through the Annual Progress
Report to HCD.

Update inventory annually
every April.

Partially Complete

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3.2 B Monitor the development of vacant and nonvacant properties identified in the sites inventory and ensure that adequate sites are available to meet the remaining RHNA by income category; amend the sites inventory list and rezone additional properties as needed. In the event that sites in zones that allow 100% nonresidential sites that are identified for lower-income RHNA develop with non-residential uses, the City will prioritize its buffer allocation to accommodate any shortfall.

The City will maintain a sufficient
number of reserve housing
inventory sites to remain
compliant with State law. In the
event the City falls short of that
requirement, it has committed to
adding or rezoning additional
properties within 180 days of
noticed shortfall of units.

Conduct review of sites
inventory annually and
report findings in housing
element progress report;
correct any deficiency
within 180 days
Pending/Not Started
PROGRAM 1.2 Site Inventory
Monitoring
Program
PDS
General Fund
Goals: 3 Policies:

3.2 C Actively promote, through outreach and discussions, sites available for lower- and moderate-income housing development to potential developers, private and non-profit organizations, and other interested persons and organizations
Conduct a minimum of four (4)
meetings annually with potential
developers about lower- and
moderate income housing sites.

Update inventory annually
every April.

Pending/Not Started
PROGRAM 1.3 Sites Used in
Previous
Housing Cycle
PDS
General Fund
Goal: 4
Policy 4.2
A The City shall rezone or amend its Municipal Code to allow by- right approval on non-vacant sites included in one previous housing element inventory and vacant sites included in two previous housing elements and designated for lower income housing, provided that the proposed housing development consists of at least 20 percent lower income housing units and does not require a subdivision.

Complete rezoning and amend
development standards for 16
properties (14 nonvacant and two
vacant sites) to enable a projected
realistic housing yield of 390
housing units.

Complete by January 31,
2024
Complete
PROGRAM 1.4 City-Owned
Land Lots
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
A Any future project on the six City-owned surface parking lots identified in Appendix D for redevelopment shall include replacement public parking and provide 100% affordable housing units serving households earning up to 80% of the Area Median Income (AMI) or for workforce housing for City employees and Palo Alto Unified School District (PAUSD) employees. The City will prepare a request for proposals to solicit interest in a public/private partnership for redevelopment of one or more sites in the City’s University Avenue Downtown area. The City will comply with the provisions of the Surplus Lands Act, ideally by using the streamlined provisions for affordable housing dispositions under Government Code Section 37364.

Subject to available funding and
following the RFP effort, the City
will select a development partner
to secure project approval for one
or more sites by 2025 with the
intent to develop a minimum of
168 lower income units on the six
City-owned sites during the
planning period.

Issue RFI in 2023 for one
parcel with the intent to
select a development
partner in 2024 based on
further feasibility analysis.

Partially Complete
PROGRAM 1.4 City-Owned
Land Lots
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
B Review City-owned parcels and identify other sites based on availability, size, access to services and related metrics that would be appropriate for transitional housing. Once parcel(s) have been identified, pursue partnerships and funding
opportunities to build transitional housing.

Subject to identification of suitable
sites and formation of
public/private partnership; provide
transitional housing opportunities
for 75 or more beds during the
planning cycle.

Complete site
identification by
December 31, 2024. Issue
RFP by June 30, 2025.

Pending/Not Started

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2023

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 1.4 City-Owned
Land Lots
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
C Maintain an updated list of City owned parcels available for residential development and post on the City’s website. Update annually to reflect residential housing projects that have been submitted, approved, and denied throughout the housing cycle.

Post information on the
City’s website by
December 31, 2023 and
update annually.

Pending/Not Started
PROGRAM 1.5 Stanford
University
Lands
PDS
General Fund
Goal: 3
Policies: 3.1, 3.2,

3.3 A Remove the Conditional Use requirement for residential uses in the Research Park zone district, which is specific for the Stanford Research Park.

This will remove a governmental
housing constraint that may
encourage greater residential uses
in the Stanford Research Park.

Engage Stanford University in a
dialogue about future multi-family
housing opportunities within the
Stanford Research Park, including
consideration of a new
neighborhood along Foothill
Expressway. Identify locations
suitable for housing and mixed-use
development and zoning
modifications and housing
incentives as appropriate for
consideration in the Seventh Cycle
Housing Element Update.

Complete by January 31,
2025.

Pending/Not Started
PROGRAM 1.5 Stanford
University
Lands
PDS
General Fund
Goal: 3
Policies: 3.1, 3.2,

3.3 B Engage Stanford University and long-term leaseholder Simon Properties for possible residential redevelopment opportunities at the Stanford Shopping Center for consideration in the Seventh Cycle Housing Element Update.

If Stanford University and long-
term lease holder are receptive to
future residential development,
establish a memorandum of
understanding with appropriate
stakeholders that identify the
location and amount of future
housing at these locations by the
end of the planning period.

Initiate conversations with
Stanford University, Simon
Properties, and other
stakeholders prior to
December 31, 2025.

Pending/Not Started
PROGRAM 1.6 Lot
Consolidation
PDS
General Fund
Goals: 2, 3
Policies: 2.2, 3.1
A Facilitate lot consolidation or residential and mixed-use developments by annually meeting and providing information and technical assistance to property owners and developers.

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2023

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 1.6 Lot
Consolidation
PDS
General Fund
Goals: 2, 3
Policies: 2.2, 3.1
B Complete study of effective incentives and minimum standards for lot consolidation . Depending on results of study, incentives could include expedited processing, increased allowable density, decreased parking ratio requirements, reduced setbacks, and increased lot coverage and height allowance.

Ordinance adopted and incentives
applied to applicable projects
throughout the planning period to
facilitate the development of larger
residential projects
Complete the study by
December 31, 2025 and
implement policies by
December 31, 2026
Pending/Not Started
PROGRAM 1.6 Lot
Consolidation
PDS
General Fund
Goals: 2, 3
Policies: 2.2, 3.1
C Waive certain development impact fees for lot consolidation for 100 percent affordable housing.

Ordinance adopted and incentives
applied to applicable projects
throughout the planning period to
facilitate the development of larger
residential projects
Complete the study by
December 31, 2025 and
implement policies by
December 31, 2026
Pending/Not Started
PROGRAM 1.6 Lot
Consolidation
PDS
General Fund
Goals: 2, 3
Policies: 2.2, 3.1
D Create lot consolidation provisions for affordable housing projects within the Zoning Ordinance.

Ordinance adopted and incentives
applied to applicable projects
throughout the planning period to
facilitate the development of larger
residential projects
Complete the study by
December 31, 2025 and
implement policies by
December 31, 2026
Pending/Not Started
PROGRAM 2.1 Affordable
Housing
Development
PDS
General Fund
Goals: 2, 3, 5
Policies: 2.3, 3.3,

5.1 A Use funds available through the City’s residential and commercial affordable housing fund to provide gap funding for qualifying affordable housing projects. Housing funds are derived from development impact fees, in-lieu inclusionary fees and proceeds from a local business tax approved by the voters in November 2022.

The City intends to supplement its
Residential and Commercial
Housing Fund by dedicating
approximately one-third of the
recently passed business tax
proceeds toward homelessness
and affordable housing initiatives.

Over the planning period, the City
anticipates it would generate
approximately twenty million
dollars ($20 M) for use toward
affordable housing and
homelessness projects. Based on
this projection, the City would
expect to be able to support gap
funding for the production of 55
affordable housing units during the
planning cycle or support other
housing priorities.

Annually review fund
balances and if sufficient
funds warrant, prepare a
Notice of Funding
Availability. The fund
balance will vary over time
based on development
activity and for the
business tax, first
collection is anticipated to
start no sooner than
January 2024.

Partially Complete

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2023

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5.1 B Prepare an updated nexus and feasibility study and adjust the residential and commercial housing development impact fee as appropriate. As part of this study, the City will engage local developers and building industry stakeholders to gain feedback on impact fees and will incorporate feedback into the study.

Use the study to adjust impact fees
as necessary to support continued
contribution to the City’s
affordable housing fund without
burdening housing production with
excessive fees that cannot be
supported by the City’s
development standards.

Initiate study prior to
December 31, 2025 with
estimated completion by
June 30, 2027
Pending/Not Started
PROGRAM 2.1 Affordable
Housing
Development
PDS
General Fund
Goals: 2, 3, 5
Policies: 2.3, 3.3,

5.1 C Partner with qualified housing developers to identify affordable housing development opportunities with emphasis on promoting housing choices that serve the needs of special needs
populations, including seniors, homeless, female-headed households, large families, low-income, and/or persons with disabilities. Meet annually throughout the housing cycle.

Through annual meetings, identify
with partners at least three
affordable housing opportunity
sites and facilitate project approval
and permitting to realize
implementation.

By December 31, 2023
establish relationships and
initiate meetings with
housing developers to
discuss affordable housing
opportunities.

Pending/Not Started
PROGRAM 2.1 Affordable
Housing
Development
PDS
General Fund
Goals: 2, 3, 5
Policies: 2.3, 3.3,

5.1 D Research and identify additional State and federal funding opportunities for affordable housing projects. Disseminate information on funding opportunities on the City’s website and/or to potential developers during technical assistance meetings and meetings with housing developers.

Support the development of 1,556
units for very-low income, and 896
units for low-income households
during the planning period
Ongoing task as part of
meetings with housing
developers.

Ongoing/Standard
Operations
PROGRAM 2.2 Below Market
Rate (BMR)
Program
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
A Continue to require development of three or more net-new residential units to provide at least fifteen (15%) of those units as inclusionary units at below market rates for ownership housing or pay a fee toward the City’s affordable housing fund. 15% of the net new multi-family
ownership housing stock will be
deed-restricted to affordable
housing (two-thirds at 100% AMI
and one- third at 120% AMI),
except in instances where an in-
lieu payment may be accepted.

The City will collect in-lieu
payments for new multi-family
rental housing based on project
floor area times a dollar amount
set by the City’s fee schedule,
currently $24.52; payments will be
used to support qualifying
affordable housing projects. Some
rental home builders may elect to
provide inclusionary units to
qualify for the State Density Bonus,
in such instances no additional in-
lieu payment will be received.

Ongoing task. Ongoing/Standard
Operations

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Attachment C - 2023-2031 Housing
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2023

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 2.2 Below Market
Rate (BMR)
Program
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
B Update the City’s feasibility study from 2020 and research a tiered inclusionary housing requirement for ownership and rental housing where market conditions support a higher inclusionary rate; establish requirements for lower income units at a reduced inclusionary requirement based on feasibility findings and discussion with developers and community
members.

Update study and present findings
to the City Council with options to
modify the City’s inclusionary
requirements. If supported, enact
municipal code changes to
implement changes.

Implementation of this objective
may have the effect of modifying
the quantified objective in A
above.

Complete by June 30,
2026.

Pending/Not Started
PROGRAM 2.2 Below Market
Rate (BMR)
Program
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
C Amend the City’s BMR program to ensure continued affordability of income-restricted ownership units for the life of the project (exempting certain affordable projects taking advantage of tax credit financing). Once amended, conduct outreach with home builders and other stakeholders regarding amended program.

Conduct outreach with home
builders and other stakeholders
and draft an ordinance to extend
income restrictions in accordance
with the implementing objective.

Complete by December
31, 2028.

Pending/Not Started
PROGRAM 2.2 Below Market
Rate (BMR)
Program
PDS
General Fund
Goals: 2, 3
Policies: 2.3, 3.2
D Review the City's Below Market Rate rental procedures for households who exceed the maximum income limit during their tenancy. [Note: this can only apply to units in the City’s BMR program, 100% affordable projects
may have other lender-dictated requirements.

Update rental procedures to
ensure reasonable transition time
for households whose incomes
increase but end up disqualifying
households from deed-restricted
housing.

Complete by December
31, 2025.

Pending/Not Started
PROGRAM 3.1 Fee Waivers
and
Adjustments
PDS
General Fund
Goals: 3, 4
Policies: 3.1, 4.1
A Amend the City’s municipal fee schedule to waive City staff costs associated with the processing of an affordable housing planning application, except for directly related consultant supported costs.

Reduce application processing
costs by approximately $20,000
per affordable housing application
and processed for a planning
entitlement.

Amend fee schedule by
December 2024
Pending/Not Started
PROGRAM 3.1 Fee Waivers
and
Adjustments
PDS
General Fund
Goals: 3, 4
Policies: 3.1, 4.1
B Prepare an economic feasibility study to analyze implications that the park fee, may have on housing production; adjust fees as appropriate to enable a reasonable return on investment and ensure sufficient fee collection to support City services.

Complete study by
December 2025. If study
demonstrates that park
fees are acting as a
constraint on housing
production, amend fee
schedule by June 2026.

Pending/Not Started
PROGRAM 3.2 Monitor
Constraints to
Housing
PDS
General Fund
Goals: 2, 4
Policies: 2.1, 2.3,

4.2 A Continue to monitor new local policy initiatives for effectiveness in combatting identified constraints to housing development.

Ongoing annual task. Ongoing/Standard
Operations

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4.2 B When new land use regulations, impact fees or procedural changes are being considered by the Planning and
Transportation Commission and City Council, the City shall prepare an analysis in the accompanying staff report detailing how the regulation may impact housing production, if at all, and recommended solutions to address those impacts.

Ongoing annual task. Ongoing/Standard
Operations
PROGRAM 3.2 Monitor
Constraints to
Housing
PDS
General Fund
Goals: 2, 4
Policies: 2.1, 2.3,

4.2 C Continue to monitor application of the Municipal Code standards for constraints to housing projects and recommend changes annually, as appropriate, to enhance the feasibility of affordable housing.

Ongoing annual task. Ongoing/Standard
Operations
PROGRAM 3.3 Affordable
Housing
Development
Incentives
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.1, 2.2,

2.3, 3.2, 4.2
A Amend the municipal code to extend the affordable housing incentive program to apply to all housing opportunity sites identified in the Housing Element and zoned for commercial, industrial or multi-family residential use; research potential AHIP regulations for religious institution sites located in the R1 district with a reduced density provision.

Amend the zoning code and
comprehensive plan as necessary
to extend the provision of
affordable housing incentive
program to sites in the housing
inventory and codify additional
incentives described herein.

Completed zoning changes
by December 31, 2024
Pending/Not Started
PROGRAM 3.3 Affordable
Housing
Development
Incentives
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.1, 2.2,

2.3, 3.2, 4.2
B Amend the affordable housing overlay (incentive program) regulations to allow housing projects to achieve a residential floor area ratio of

2.4:1.0 without requiring commercial floor area (except on University and California Avenue); comply with State Density Bonus parking standards if more permissible than local
requirements; and, for housing projects income restricted to 60% of the area median income level or below, allow up to sixty (60) feet in height on all opportunity sites.

Completed zoning changes
by December 31, 2024
Pending/Not Started
PROGRAM 3.3 Affordable
Housing
Development
Incentives
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.1, 2.2,

2.3, 3.2, 4.2
C Amend Zoning Code to incorporate all recent changes to State density bonus law and develop summary materials to promote the use of density bonuses.

Completed zoning changes
by December 31, 2024
Ongoing/Standard
Operations

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2.3, 3.2, 4.2
D Assess existing development review process to determine if an expedited permit process can be implemented for affordable housing projects. Evaluate efficiency of recent process changes, including 2023 streamlining for projects to go to ARB within 45- 60 days of submittal (not completeness) and July 2023
implementation of Streamlined Review Process which only requires one study session with the ARB prior to Director consideration.

The timeframes associated with
permit processing can be viewed as
a constraint to affordable
development. The City aims to
complete the processing of
planning entitlements for
affordable housing projects
exempt from environmental
review within 90 days from
application submittal.

Initiate assessment by
December 2023 with
implementation of
assessment option
initiated by December
2024.

Pending/Not Started
PROGRAM 3.3 Affordable
Housing
Development
Incentives
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.1, 2.2,

2.3, 3.2, 4.2
E Research and identify additional State and federal funding opportunities for affordable housing projects. Disseminate information on funding opportunities on the City’s website and/or to potential developers during technical assistance meetings.

Support the development of 1,556
units for very-low income, and 896
units for low-income households
during the planning period.

Ongoing annual task. Ongoing/Standard
Operations
PROGRAM 3.4 Housing
Incentive
Program (HIP)
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 4.2, 4.4
A Continue to allow HIP projects to benefit from relaxed development standards including, increased floor area ratios and waiver from lot coverage requirements.

Monitor development activity and
document how many projects take
advantage of the HIP as opposed to
base district zoning standard or
other State incentives, such as
State Density Bonus law.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 3.4 Housing
Incentive
Program (HIP)
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 4.2, 4.4
B HIP qualifying projects that also comply with City approved objective standards shall be administratively reviewed with one courtesy meeting before the Architectural Review Board but subject to appeal to the City Council.

Monitor projects for compliance
with desired review schedule, track
application processing timelines
and number of applications
appealed to Council; use data to
inform future modifications to the
HIP program.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 3.4 Housing
Incentive
Program (HIP)
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 4.2, 4.4
C Reduce the City’s parking requirements to be consistent with State Density Bonus law. Based on the findings of a feasibility study, modify the local Housing Incentive Program to amend development standards that promote greater housing
production; ; allow for sites subject to City’s retail preservation ordinance – except in the ground floor (GF) and retail (R) combining districts and strategic locations generally depicted in the draft South El Camino Real Design Guidelines – a reduction in the amount of retail replacement floor area needed for
redevelopment and waive the retail preservation requirement for identified housing opportunity sites.

Amend the municipal code and
comprehensive plan to codify
implementing objective; as with A
and B above, monitor program and
housing production generated
from program – make adjustments
as warranted.

Complete by December
31, 2024.

Partially Complete

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3.2, 4.2, 4.4
D Reduce the City’s parking requirements to be consistent with the State Density Bonus law. Based on the findings of a feasibility study, extend and amend the local Housing Incentive Program to multi-family residential districts to amend development standards that promote greater housing production.

Complete by December
31, 2024.

Partially Complete
PROGRAM 3.4 Housing
Incentive
Program (HIP)
PDS
General Fund
Goal: 2, 3, 4
Policies: 2.2, 3.1,

3.2, 4.2, 4.4
E Based on the findings of a feasibility study, extend the local Housing Incentive Program to the ROLM and GM districts in northeast portion of the City nearest the Bayshore Freeway and generally bounded by East Charleston Road to the east and Loma Verde Avenue. The Housing Incentive Program development standards shall be amended to increase height and floor area allowances for housing projects; reduce parking requirements, and adjustment to other development standards toenable
greater housing production.

Complete by December
31, 2024.

Partially Complete
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 A Develop, maintain and update a City Summary Guide to ADUs and JADUs to promote, educate, and assist homeowners with developing ADUs/JADUs.

Facilitate the development of 512
ADUs over the planning period.

Complete by December
31, 2023 and maintain
annually thereafter.

Pending/Not Started
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 B Provide informational workshop(s) and publish resources on City’s website on building ADUs and JADUs. Target outreach to property owners in low- and moderate-resource areas and provide workshops and materials in English, Spanish, and Chinese.

Facilitate construction of 512 ADUs
over the planning period.

Publish material on the
City’s website by
December 2023 and
facilitate one workshop
annually in multiple
languages.

Partially Complete
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 C Based on the findings of a feasibility study, develop pre-approved standards for ADU foundation plans or prefabricated plans.

Facilitate construction of 512 ADUs
over the planning period.

Initiate feasibility study by
January 2024. If pre-
approved standards are
likely to facilitate ADU
construction, provide
standards by January
2025.

Pending/Not Started
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 D Continue to monitor and publish information related to ADU production and application review timelines; meet with ADU stakeholders and review application processing performance to identify potential impediments and make adjustments as
needed.

Prepare bi-annual reports
documenting findings to facilitate
construction of 512 ADUs over the
planning period.

Meet with ADU
stakeholders at least once
every two years starting in
2024; prepare information
reports bi-annually.

Pending/Not Started

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4.3 E Investigate waiver of development impact fees for ADUs larger than 750 sq. ft. under certain conditions.

Facilitate the development of 512
ADUs over the planning period.

Complete study by
December 2024 to
determine impact on City
ability to finance adequate
infrastructure. If study
demonstrates de minimis
impact, adopt changes to
fee schedule by July 2025.

Pending/Not Started
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 F Amend ADU ordinance as required to comply with State law and submit to HCD.

Facilitate the development of 512
ADUs over the planning period by
ensuring that the City’s ADU
ordinance complies with State law.

Amend ordinance by May,
2023. If further
amendments are made to
state ADU law, amend
ordinance within 6
months to ensure
continued compliance
with ADU law.

Ongoing/Standard
Operations
PROGRAM 3.5 Accessory
Dwelling Unit
(ADU)
Facilitation
PDS
General Fund
Goals: 2, 3, 4
Policies: 2.3, 3.1,

4.3 G G. Review ADU production and affordability levels every two years to determine if assumptions made in Housing Element are accurate. Prepare and circulate survey of ADUs to determine affordability levels and determine where any improvements can be made to the process and whether non-governmental
constraints to construction of ADUs, such as financing and construction costs, are restricting development. If assumptions are not met, and depending on the results of the survey, take additional actions, which could include additional public outreach efforts, modifications to process, pre-approved plans, ADU incentives, and financial assistance.

Undertake affordability survey and
facilitate the development of 512
ADUs over the planning period.

Review ADU trends every
two years starting in
January 2025. If
assumptions are not met,
take actions within six
months of receiving
results to increase ADU
production and ensure
that the City continues to
have adequate housing
sites.

Pending/Not Started
PROGRAM 3.6 Expedited
Project Review

PDS
General Fund
Goal: 4
Policy: 4.2
A Implement recommendations of the recent building permit audit to improve application processing and streamlining. Conduct study of document management and project tracking programs that may provide software-based solutions to ensure projects are processed in a timely manner.

Implement
recommendations of
building permit audit
within timeline
recommended by study
Pending/Not Started
PROGRAM 3.6 Expedited
Project Review

PDS
General Fund
Goal: 4
Policy: 4.2
B Evaluate ways to reduce and streamline the planning submittal requirements checklist to simplify application process, focus on essential plan components, and reduce time to achieve project completeness.

Initiate assessment by
December 2024 with
implementation of
assessment option
initiated by December
2025.

Pending/Not Started

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PDS
General Fund
Goal: 4
Policy: 4.2
C Review standard conditions of approval on planning approvals to identify ways to reduce redundancies with existing local and, State code requirements. This program aims to reduce confusion for applicants, clarify requirements, and streamline conditions for building permit approval and construction practices.

Initiate assessment by
December 2024 with
implementation of
assessment option
initiated by December
2025.

Pending/Not Started
PROGRAM 3.6 Expedited
Project Review

PDS
General Fund
Goal: 4
Policy: 4.2
D Assess existing development review process for housing projects.

Evaluate efficiency of recent process changes, including 2023 streamlining for projects to go to ARB within 45-60 days of submittal (not completeness) and July 2023 implementation of Streamlined Review Process which only requires one study session with the ARB prior to Director consideration.

The City aims to complete the
processing of planning
entitlements for housing projects
exempt from environmental
review within 90 City-processing
days from application submittal.

Initiate assessment by
December 2023 with
implementation of
assessment option
initiated by December
2024.

Pending/Not Started
PROGRAM 3.6 Expedited
Project Review

PDS
General Fund
Goal: 4
Policy: 4.2
E Formalize a procedure to offer no-cost pre-application consultation services for new housing developments.

Provide a no-cost pre-consultation
meeting for up to 90 minutes for
any multi-family housing project.

Complete by December
31, 2023
Pending/Not Started
PROGRAM 3.6 Expedited
Project Review

PDS
General Fund
Goal: 4
Policy: 4.2
F For housing projects subject to the City’s Architectural Review Board, limit the number of hearings before the ARB to a maximum of two meetings.

Amend the zoning code to limit
multi-family housing projects to
two hearings before the City’s ARB
unless additional review is agreed
upon by the home builder and City;
document the City’s performance.

Complete by December
31, 2024
Pending/Not Started
PROGRAM 3.7 Objective
Design
Standards for
SOFA
PDS
General Fund
Goal: 3,4
Policy: 3.1, 4.2,

4.3 A Develop Objective Design Standards for the SOFA Area to accommodate future residential development at higher
densities.

Support additional residential
development proposed for the
SOFA area.

Complete and adopt
objective design standards
by December 31, 2026
Pending/Not Started
PROGRAM 3.8 Zoning
Ordinance
Monitoring
PDS
General Fund
Goal: 2, 5
Policy: 2.3, 5.1
A Amend the zoning code to ensure compliance with all provisions of current state law as specified in Program 6.5.

Ensure that the zoning code is
consistent with state law.

Complete by December
31, 2023
Ongoing/Standard
Operations

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 3.8 Zoning
Ordinance
Monitoring
PDS
General Fund
Goal: 2, 5
Policy: 2.3, 5.1
B Review future adopted changes in state law and adopt additional zoning ordinance changes as required to comply with state law.

Ensure that the zoning code is
consistent with state law.

Adopt zoning ordinance
amendments as specified
in Program

6.5. In December of each
year, review adopted
changes in state law
effective January 1 of the
next year and adopt
additional ordinance
changes as required to
comply with state law.

This program would
continue to be
implemented on an
ongoing basis through the
remainder of the planning
period as state law is
amended.

Ongoing/Standard
Operations
PROGRAM 3.9 Conversion of
Commercial
Uses to Mixed
Use
Development
PDS
General Fund
Goal: 3,6
Policies: 3.1, 3.2,

6.3 A Continue the City’s existing policy of commercial office growth restrictions to promote an improved jobs to housing balance.

Incentivize the development of
2,629 units on sites where office
space is the existing use.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 3.9 Conversion of
Commercial
Uses to Mixed
Use
Development
PDS
General Fund
Goal: 3,6
Policies: 3.1, 3.2,

6.3 B Amend the City’s Municipal Code to reduce commercial floor area allowances or other commercial incentives at strategic locations to shift the economic benefit of redevelopment toward home building.

Support the development of 716
units on sites with existing
commercial uses.

Complete amendments to
Municipal Code by
December 31, 2025
Pending/Not Started
PROGRAM 3.9 Conversion of
Commercial
Uses to Mixed
Use
Development
PDS
General Fund
Goal: 3,6
Policies: 3.1, 3.2,

6.3 C Conduct outreach with home builders and other stakeholders regarding the feasibility of marketing different housing typologies without on-site parking (paid through in-lieu fee) and implications to City parking resources; present findings to the City Council with options on how to proceed, including extension of the University Ave In-Lieu Parking program to residential projects and creation of an in-lieu parking program for the California Avenue area.

Present findings to City
Council by December 31,
2025 with amendments to
municipal code by
December 31, 2026.

Pending/Not Started
PROGRAM 4.1 Replacement
Housing
PDS
General Fund
Goals: 1, 3
Policies: 1.2, 1.4,

3.3 A Enforce replacement housing requirements as required by state law. Amend the City’s municipal code to require all sites listed in the housing element, all projects utilizing density bonuses, and all projects demolishing residential dwelling units to meet the replacement housing requirements of state law contained in housing element law, density bonus law, and the Housing Crisis Act of 2019.

Amend the municipal code to
implement replacement housing
obligations.

Continue to implement
state law for all
development projects
subject to replacement
housing requirements.

Adopt ordinance as part of
planned rezonings by
January 31, 2024.

Ongoing/Standard
Operations

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3.3 B Expand the Housing Crisis Act requirements to require any commercial development to replace any demolished residential units as a part of any redevelopment.

Amend the municipal code to
expand replacement housing
obligations to all redeveloped sites.

Adopt ordinance by June
30, 2025.

Pending/Not Started
PROGRAM 4.2 Housing and
Neighborhood
Preservation
PDS
General Fund
Goal: 6
Policies: 6.2
A Annually communicate with renters through direct mailing to multi-family apartment buildings and through the City’s website, resources available to renters, including expectations for housing quality and steps to take for suspected substandard housing conditions.

Prepare relevant information,
provide to all renters by mail, and
post online, implement best
outreach approaches to
communicate with renters.

Initiate in 2025 and
annually thereafter.

Pending/Not Started
PROGRAM 4.2 Housing and
Neighborhood
Preservation
PDS
General Fund
Goal: 6
Policies: 6.2
B In response to any complaint about substandard housing received by the City’s Code Enforcement Program, staff will provide information to the resident or homeowner about the City’s Rehabilitation Program and conduct residential code inspections to determine if the property is substandard in accordance with PAMC 16.40.020 and the state Housing Code. If property is substandard, City will begin code enforcement action Staff will respond to any
complaints received, conduct code
inspections of all reported units,
provide access to relevant
information and when necessary,
connect the complainant with
mediation services offered by the
City through contract provider, or
undertake enforcement action, as
appropriate.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 4.2 Housing and
Neighborhood
Preservation
PDS
General Fund
Goal: 6
Policies: 6.2
C The City will conduct increased outreach to increase awareness of housing resources, fair housing workshops, and tenant protection. Specifically, the City will conduct at least one fair housing workshop annually for community-based organizations that serve residents and housing providers in areas of the City with the highest number of substandard housing complaints to Code Enforcement. Project Sentinel provides fair housing information and advice to individual tenants
Disseminate information to the
public to increase the awareness of
support for tenant protections
with the goal of reaching at least
five new households annually. The
City will engage with community-
based organizations to gauge the
effectiveness of the workshops. If
new households are not reached,
City will increase outreach efforts.

Ongoing and annual task,
with first workshop to
occur by December 2024
Pending/Not Started
PROGRAM 4.2 Housing and
Neighborhood
Preservation
PDS
General Fund
Goal: 6
Policies: 6.2
D The City will develop options for limiting short-term rentals in all areas of the City to ensure housing stock is used for long-term rentals. Strategies to evaluate include prohibiting short-term rentals (no less than 30 days allowed), limiting the number of days the unit can be used for short-term rentals, prohibiting short-term rentals in all multi-unit dwellings, allowing for short- term rentals only if the property is the owner’s primary residence, and benchmarking the number of short-term rentals allowed to no more than a specific percentage of the
community’s rental housing stock.

Amend the municipal code to
codify regulations limiting short-
term rentals.

Initiate study of short-
term rentals in 2025 and
determine impact on City
housing supply. Adopt
ordinance by July 1, 2027
to limit short-term rentals
as required to minimize
impacts on properties
available for long-term
use.

Pending/Not Started

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2023

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 4.2 Housing and
Neighborhood
Preservation
PDS
General Fund
Goal: 6
Policies: 6.2
E The City will evaluate the feasibility of adding regulations to incentivize the use of housing units for residential purposes to support retention of housing stock.

Amend the municipal code to
codify regulations limiting short-
term rentals.

Pending/Not Started
PROGRAM 4.3 Home
Rehabilitation
PDS
General Fund
Goal: 1,6
Policies: 1.1, 1.3,

6.2 A Continue to work with Rebuilding Together to assist qualifying low-income homeowners with home rehabilitation projects.

Disseminate information to the
public to increase the awareness of
support for home rehabilitation
with the goal of reaching at least
five new households annually.

Develop program by
December 2026.

Rebuilding Together work
is ongoing.

Ongoing/Standard
Operations
PROGRAM 4.3 Home
Rehabilitation
PDS
General Fund
Goal: 1,6
Policies: 1.1, 1.3,

6.2 B Develop CDBG outreach program to educate residents about opportunities for services, such as RV parking and rental assistance regarding mediation.

Disseminate information to the
public to increase the awareness of
support for home rehabilitation
with the goal of reaching at least
five new households annually.

Develop program by
December 2026.

Rebuilding Together work
is ongoing.

Pending/Not Started
PROGRAM 4.3 Home
Rehabilitation
PDS
General Fund
Goal: 1,6
Policies: 1.1, 1.3,

6.2 C Annually dedicate CDBG funds as available to support the City’s Rehabilitation Program; seek additional funding to supplement CDBG funding to expand the program and recipients to
households above low-income levels.

Participate and remain in good
standing with the CBDG program,
with the goal of providing funding
to support the rehabilitation of at
least five homes annually.

Annually budget CDBG
funds for City’s
Rehabilitation Program.

Pending/Not Started

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6.2 D The City will conduct increased outreach to increase awareness of CDBG funds and availability of said funds. The City will conduct one CDBG workshop annually to disseminate information
regarding program requirements and availability of funds. The City will also update their website annually with information on the program.

Disseminate information to the
public to increase the use of
available CDBG funds with the goal
of supporting the rehabilitation of
at least 5 homes annually. Market
home rehabilitation program
opportunities as part of Housing
Resources Fair. Continue to update
the new Housing Portal on the
City’s website.

Ongoing and annual task,
with first workshop to
occur by December 2024
and website updated after
adoption of each CDBG
budget.

Pending/Not Started
PROGRAM 4.4 Seismic Retrofit PDS
General Fund
Goal: 1
Policy: 1.1
A Amend the City’s seismic hazards identification program to strengthen regulations and require seismic upgrades of
vulnerable housing stock through a combination of mandatory provisions and voluntary incentives.

Amend the City’s seismic
regulations to advance
implementation objective,
including a compliance schedule
for approximately 130 soft-story
multi-family buildings in Palo Alto.

Initiate effort in 2023,
complete by 2026.

Partially Complete
PROGRAM 5.1 Preservation of
At-Risk Housing
PDS
General Fund
Goal: 1
Policies: 1.2, 1.3,

1.4 A Monitor the status of the 72 units at high risk of conversion to market- rate units during the planning period and seek to preserve these affordable units at their existing affordability levels.

Track the status of units with high
risk of conversion to market-rate to
preserve affordability for
extremely low and very low
income households.

Ongoing annual task. Ongoing/Standard
Operations
PROGRAM 5.1 Preservation of
At-Risk Housing
PDS
General Fund
Goal: 1
Policies: 1.2, 1.3,

1.4 B Provide direct notification to property owners and tenants of low- income deed restricted housing units of the state requirement to notify affected households about the termination of the affordability restrictions at six and twelve months, and three years.

Mail requirements to qualifying
property owners as specified.

Twice during the reporting
period, once in 2024 and
again in 2028.

Pending/Not Started
PROGRAM 5.1 Preservation of
At-Risk Housing
PDS
General Fund
Goal: 1
Policies: 1.2, 1.3,

1.4 C Inform property owners of their obligation to comply with noticing requirements stipulated under state law to ensure that qualified non- profit entities from the State’s qualified entities list are informed of the opportunity to acquire the affordable property and that tenants are informed about their rights and potential resources.

Ensure qualified non-profit entities
are notified of acquisition
opportunities and to ensure
tenants are aware of the
impending changes.

Send notice to property
owner three years prior to
potential project
conversion. Provide follow-
up with contacts one year
and six months prior to
conversion if property
owner fails to comply.

Pending/Not Started

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1.4 D Contingent on funding availability, in the event that a property is scheduled for conversion, contact property owner regarding funding availability. If the property owner intends to sell the property encourage sale to a qualified non-profit entity.

Incentivize the sale to a qualified
non-profit entity.

Inform property owner
three years prior to
potential project
conversion whether
funding is available to
preserve the affordability
restrictions.

Pending/Not Started
PROGRAM 5.1 Preservation of
At-Risk Housing
PDS
General Fund
Goal: 1
Policies: 1.2, 1.3,

1.4 E Continue to engage with HUD and the property owner of 4230 Terman Drive (Terman Apartments) with 72 affordable housing units at risk of conversion to market rate units during the housing cycle to explore opportunities for continued
affordability. At present, the owners have no intention to sell the project or transfer the affordable units out of the Section 8 contract, based on correspondence with a HUD representative on September 14, 2022.

Preserve 72 affordable housing
units that are at risk of conversion.

Initiate conversation in
2024.

Pending/Not Started
PROGRAM 5.2 Funding
Opportunities
PDS
General Fund
Goal: 1
Policy: 1.3
A Review CalCHA partnership requirements and present an option to decision-makers for inclusion to the program; identify existing housing sites meeting criteria for preservation, prepare and adopt necessary resolutions or agreements to operationalize program.

Make decision to join with
CalCHA (or other similar
programs) by June 2025
Pending/Not Started

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Program # Program Text
Responsible
Agency &
Funding
Sources
Primary
Associated
Goals &
Policies
Implementing
Objectives # Implementing Objectives Quantified Objectives Time Frame Status PROGRAM 5.2 Funding
Opportunities
PDS
General Fund
Goal: 1
Policy: 1.3
B Continue seeking funding sources, especially for extremely low income housing, including supporting the ongoing development of the Bay Area Housing Financing Authority (BAHFA).

Support the BAHFA to provide
services to 50 extremely low-
income households during the
planning period. Pursue funding
sources including CDBG and State
and regional grants for
preservation. The City intends to
supplement its Residential and
Commercial Housing Fund by
dedicating approximately one-third
of the recently passed business tax
proceeds toward homelessness
and affordable housing initiatives.

Ongoing annual task. Ongoing/Standard
Operations
PROGRAM 5.3 Water and
Sewer Supplies
PDS
General Fund
Goal: 4
Policies: 4.2
A Provide a copy of the adopted 2023-31 Housing Element to the City’s Utility Department, which provides water and sewer service to the City.

Update Utilities Department Rules
and Regulations.

Within 30 days of
adoption
Complete
PROGRAM 6.1 Housing for
Persons with
Special Needs
PDS
General Fund
Goal: 5,6
Policies: 5.1, 5.2,

5.3, 6.3
A For extremely low income housing units, update the City’s affordable housing guidelines to establish preferences for populations with special needs in those units.

Adopt revised guidelines
by December 31, 2024.

Pending/Not Started
PROGRAM 6.1 Housing for
Persons with
Special Needs
PDS
General Fund
Goal: 5,6
Policies: 5.1, 5.2,

5.3, 6.3
B Contract with and financially support non-profit services providers through the Community Development Block Grant program, such as the Opportunity Center, that help meet the supportive services needs of the City’s diverse community, especially those with extremely low incomes.

Support the Opportunity Center
with the goal of providing services
to 50 low-income households
during the planning period.

Starting in 2023 and
annually thereafter, as
funds are available.

Ongoing/Standard
Operations

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5.3, 6.3
C In order to assist in the housing needs for special needs populations, the City will facilitate the development of housing for persons with disabilities through incentives including streamlined processing, scoring priorities in future Notices of Funding Availability, and/or direct subsidies drawing from City affordable housing funding such as CDBG, HOME, Affordable Trust fund, and other State/federal funding sources for affordable housing development with services, resources, and assistance:
-Establish procedures by June 2024 in Notice of Funds Available (NOFA) that create incentives for the development of various types of housing units, including units for persons with disabilities and seniors, such as bonus points or preference for special needs housing.
-Annually engage with housing stakeholders and housing
providers, on the identification of needs and new solutions, including lessons learned from the operators of the City’s recently approved AB2162 housing project for persons with disabilities.
-Partner with the County and other agencies to pursue funding sources, such as County Measure A funds, designated for housing for special needs groups, including persons with disabilities.

Meet annually with housing service
providers and the Santa Clara
County representatives to identify
opportunities to further support
special needs populations. Develop
at least 5 units annually for a total
of 40 housing units for special
needs households.

Conduct outreach to
housing providers and
County starting in 2024
and annually thereafter.

Prepare a NOFA in 2024
and review annually
thereafter based on
adequate availability of
funds.

Partially Complete
PROGRAM 6.1 Housing for
Persons with
Special Needs
PDS
General Fund
Goal: 5,6
Policies: 5.1, 5.2,

5.3, 6.3
D Continue to implement the Municipal Code and facilitate requests for reasonable accommodation to land use decisions and procedures regulating the siting, funding, development, and use of housing for people with disabilities.

Annually report on
reasonable
accommodation requests
received, and their
outcomes, in the Annual
Progress Report.

Ongoing/Standard
Operations
PROGRAM 6.2 Family Housing
and Large Units
PDS
General Fund
Goals: 2, 5, 6
Policy: 2.3, 5.1,

6.3 A Research and implement incentives to encourage larger units, such as FAR exemptions for three or more bedroom units, and creation of family- friendly design standards. Meet with housing stakeholders and conduct public hearings before the Planning and Transportation Commission to receive public and
commissioner input on ways to achieve stated objective. Make recommendations to Council and follow up with an ordinance to effect a change in local zoning regulations as directed.

Support additional development of
large housing units through code
amendments that incentive large
family housing units and family-
friendly designs, with the goal of a
housing stock where large units
comprise 10 percent of all new
rental units.

Initiate study of possible
incentives by June 2025
and adopt recommended
actions by June 2026.

Pending/Not Started
PROGRAM 6.3 Middle Housing
Program
PDS
General Fund
Goals: 3, 4, 6
Policies: 3.2, 4.2,

4.3, 6.3
A Increase the floor area limitation from 800 to 1,200 square feet per unit for SB 9 projects that result in creation of three or more detached units on a single family lot. Refine objective design standards and development standards based on experience with project applications.

Development of 40 net new units,
other than ADU development, on
single-family zoned lots during the
planning period.

Initiate by 2025, complete
by December 2026.

Pending/Not Started

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5.3, 5.5, 5.6, 6.3
A Expand geographic and service areas of the City’s Safe Parking Program. Research the feasibility and extend the safe parking program to City parks, parking lots and commercial lots. Expand program services to include case management and explore opportunities to provide supervised access to City facilities.

Support the City’s existing
population living in vehicles by
annually moving 40 percent of
individuals using Safe Parking to
housing as it becomes available.

Initiate by 2026, complete
by December 2028.

Pending/Not Started
PROGRAM 6.4 Homelessness
Program
PDS
General Fund
Goal: 5, 6
Policies: 5.1, 5.2,

5.3, 5.5, 5.6, 6.3
B Create a social services directory and make it available to residents at public counters and on City website and at Safe Parking areas.

Complete by December
2023
Pending/Not Started
PROGRAM 6.4 Homelessness
Program
PDS
General Fund
Goal: 5, 6
Policies: 5.1, 5.2,

5.3, 5.5, 5.6, 6.3
C Expand the City’s homeless prevention program to include renter protections, including security deposit limits, anti-rent gouge, eviction reductions and financial assistance for utilities. Identify funding sources, such as Human Services Resource Allocation Process (HSRAP) funds to support households at risk of
homelessness; engage with homelessness stakeholders, conduct hearings before the Planning and Transportation and City Council and make recommendations to support objective; implement based on available funding.

Adopt new renter protection
ordinances to advance objective.

Initiate code amendments
in 2023 and complete by
June 2024.

Partially Complete
PROGRAM 6.4 Homelessness
Program
PDS
General Fund
Goal: 5, 6
Policies: 5.1, 5.2,

5.3, 5.5, 5.6, 6.3
D Continue to pursue the Homekey (LATP) site for use as a temporary bridge housing facility to provide accommodations for individuals who are actively engaged in services leading to permanent housing. Engage with stakeholders, including the State Department of Housing and Community Development,
LifeMoves, Santa Clara County Office of Supportive Housing, and the Santa Clara County Housing Authority.

Advance the project and ensure
robust uptake by engaging in
ongoing outreach to the unhoused,
ensuring support services,
connectivity, and transitional
housing for, at a minimum 88
households
annually.

Complete by June 30,
2024.

Partially Complete
PROGRAM 6.4 Homelessness
Program
PDS
General Fund
Goal: 5, 6
Policies: 5.1, 5.2,

5.3, 5.5, 5.6, 6.3
E Explore and implement, where feasible, additional opportunities for Homekey funding or other similar funding sources to convert hotels to permanent or interim housing for persons experiencing homelessness or at risk of homelessness. Work with stakeholders to identify additional funding opportunities and locations to support homelessness population and those at risk of
homelessness.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 6.5 Alternative
Housing
PDS
General Fund
Goal: 5, 6
Policies: 2.3, 5.1,

5.3, 5.4, 5.5, 5.6,

6.3 A Coordinate with HIP Housing or similar house sharing services to provide shared housing arrangements. Identify opportunities to extend home sharing services to Palo Alto and promote on the City’s website as appropriate.

Initiate conversations in
2024.

Pending/Not Started

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5.3, 5.4, 5.5, 5.6,

6.3 B Allow innovative housing structures, such as micro-unit housing and new shared and intergenerational housing models, to help meet the housing needs of aging adults, students, and
lower-income individuals citywide. Meet with housing
stakeholders and conduct public hearings before the Planning and Transportation Commission to receive public and
commissioner input on ways to achieve stated objective. To the extent that density presents a constraint on development of alternative housing types, identify sites where elimination of maximum dwelling units per acre is appropriate. To the extent that impact fees assessed per unit inordinately impact alternative housing types, adjust fees to apply to square footage. Make recommendations to Council and follow up with an ordinance to effect a change in local zoning regulations as directed.

Initiate study of
alternative models in 2024
and present initial findings
in 2025 to Commission,
public, and stakeholders.

Adopt ordinance revisions
conclude as appropriate
before December 31,
2026.

Pending/Not Started
PROGRAM 6.5 Alternative
Housing
PDS
General Fund
Goal: 5, 6
Policies: 2.3, 5.1,

5.3, 5.4, 5.5, 5.6,

6.3 C Evaluate the permit process for group homes of seven or more persons and amend the PAMC to include group homes by right in all residential zones. Include a set of objective standards to provide certainty to applicants through the permitting process.

Adopt ordinance
amendments by January
2027
Pending/Not Started
PROGRAM 6.5 Alternative
Housing
PDS
General Fund
Goal: 5, 6
Policies: 2.3, 5.1,

5.3, 5.4, 5.5, 5.6,

6.3 D Amend the PAMC as needed to be consistent with Government Code Sections 65650 et seq., which require that Supportive Housing meeting the standards in the statute be treated as a by- right use where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses.

Amendments will also be made to allow transitional and
supportive housing, as defined in Government Code Section 65582, to be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone.

Adopt ordinance
amendments by January
2025
Pending/Not Started
PROGRAM 6.5 Alternative
Housing
PDS
General Fund
Goal: 5, 6
Policies: 2.3, 5.1,

5.3, 5.4, 5.5, 5.6,

6.3 E Amend the PAMC to be consistent with Government Code sections 65660 et seq., which require a Low Barrier Navigation center to be a use by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses, provided specific requirements of the law are met.

Amend by January 2025 Pending/Not Started
PROGRAM 6.5 Alternative
Housing
PDS
General Fund
Goal: 5, 6
Policies: 2.3, 5.1,

5.3, 5.4, 5.5, 5.6,

6.3 F Amend the PAMC parking regulations for Homeless and Emergency Shelters and Navigation Centers to comply with Government Code section 65583, subdivision (a)(4)(A). Allow emergency shelters in the ROLM(E) zone to be approved
ministerially, without discretionary action, remove distance requirements, adjust length of stay requirements, and ensure that the development standards for shelters are in compliance with statutory requirements
Amend by January 2025 Pending/Not Started

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5.3, 5.4, 5.5, 5.6,

6.3 G Amend the PAMC zoning code to ensure compliance with the Employee Housing Act (including California Health and Safety Code sections 17021.5, 17021.6, and 17021.8) to state that farmworker housing up to 36 beds or 12 units are to be
permitted as an agricultural use and therefore “by right” in the AC and OS zones and no discretionary permit would be required of employee housing providing accommodation for six or fewer employees if discretionary permits are not required of a family dwelling of the same type in the same zone.

Amend by January 2025 Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
A Distribute educational materials to property owners, apartment managers, and tenants relative to fair housing requirements, regulations, and services via public counters, the City’s website, social media, community announcements and in response to telephone inquires. Provide materials in English, Spanish, and Chinese.

Outreach to 100 residents, housing
providers, and housing
professionals, including at least 20
individuals in South Ventura and
North of Downtown, adjacent to
Menlo Park.

Initiate by May 31, 2024
and update annually
thereafter
Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
B City will require affirmative marketing of all residential projects and will require developers to advertise to under-represented minority groups to indicate the availability of housing units that meet affordable housing requirements.

Inclusion of marketing materials as
a condition of residential permit
approvals Citywide.

Develop policy and initiate
by May 31, 2024. Update
annually thereafter.

Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
C By December 2025, conduct an equity study to target program marketing to neighborhoods with higher poverty rates.

Conduct study by
December 2025 and
create targetting plan by
September 2026.

Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
D Provide public announcements, via different media (e.g., social media, newspaper ads, and public service announcements at local radio and television channels) related to fair housing programs and opportunities for Palo Alto residents. Public announcement will be provided in English, Spanish, and Chinese.

Provide biannual announcements
during the planning period.

Initiate in January 2024
and biannually thereafter.

Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
E Partner with Project Sentinel to conduct random compliance testing of rental properties in South Ventura at least twice per year during the planning period. Refer individuals to State Fair Employment and Housing, HUD Fair Housing and Equal
Opportunity division, and other legal services as appropriate.

Aim to reduce fair housing
complaints by approximately 10%
annually in the years following
implementation of this program.

Ongoing task; maintain
contract with Project
Sentinel.

Ongoing/Standard
Operations
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
F Allocate annual funding for fair housing services through the Action Plan process for the use of CDBG funds.

Annually as part of the
CBDG update
Ongoing/Standard
Operations

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6.3, 6.4, 6.5
G Continue to require mixed-income developments accessible to lower income residents citywide, especially in high opportunity and resource-rich areas through use of the City’s Below Market Rate (BMR) requirements. Continue to give priority for use of Housing Trust Funds, development of city-owned properties, and use of grant funding for housing to projects located in high opportunity and resource-rich areas. Pursue additional funding sources, such as State grants.

Support the development of 1,556
units for very-low income, and 896
units for low-income households in
high opportunity and resource-rich
during the planning period.

Ongoing task as housing
projects are proposed and
City prepares notices of
grant funding.

Ongoing/Standard
Operations
PROGRAM 6.6 Fair Housing
Impediments
PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
H In addition to existing funding, develop or identify a source for the City to provide expanded funding to Project Sentinel.

Ongoing and expanded funding will support the group’s efforts to address housing discrimination in the City, to conduct site tests, and to educate the general public on fair housing issues.

Goal for expanded funding to reach
an additional 20 residents annually.

Identify and, if applicable,
prepare an application for
new funding by Fall 2024.

Pending/Not Started
PROGRAM 6.6 Tenant
Protection
PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
I Adopt tenant protections to prevent anti-displacement including the following: eviction reduction; rental registry program; security deposit limit; right to counsel. Specific proposals include:

Fair Chance Ordinance for persons with criminal records, self- funded rental registry and survey program; expanding AB 1482 protections to apply to new construction and limiting security deposits 1.5x of monthly rent for unfurnished units. Local relocation assistance requirements were significantly expanded in 2022.

Develop a database for tracking
tenant displacement and evictions
to establish baseline, trends, and
develop policies that would reduce
unjust evictions.

Begin implementation in
December 2023 with
implementation
completed by the
following dates:
-June 2024 (Fair Chance
Ordinance, rental registry
program, eviction
reduction and security
deposit limit programs
legislation)
-December 2027 (right to
counsel)
Partially Complete
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
J Require a 90-day notice for a rent increase of 6% instead of the State’s 10% threshold for noticing. Provide educational materials to landlords and tenants as part of Programs 6.6 A, B, D, and L.

Begin implementation in
December 2023, with
legislation adopted by
June 2024 .

Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
K Promote Housing Choice Vouchers to support housing mobility by educating landlords about income discrimination (i.e., Cannot post “NO Section 8” on applications), with a goal to increase acceptance of Housing Choice Vouchers in high opportunity and high resource areas. Include educational materials as part of Programs 6.6 A, B, D, and L,
Assist 200 households annually or
the number of vouchers allocated
under the housing choice voucher
program, including project-based
vouchers.

Ongoing task. Pending/Not Started

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6.3, 6.4, 6.5
L Work with Project Sentinel and renter organizations to conduct an annual workshop in the South Ventura and Downtown North neighborhoods to educate tenants and landlords about fair housing requirements.

Aim to reduce fair housing
complaints by educating at least 20
tenants and landlords annually.

Ongoing annual task. Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
M Work with Project Sentinel to respond to complaints of discrimination (i.e. intaking, investigation of complaints, and resolution) within 3 days and follow up with information on the resources and services available through fair housing services.

Aim to reduce fair housing
complaints by ensuring timely
attention to complaints.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
N Educate tenants and landlords about their rights and
responsibilities related to relocation assistance required by the City or state law in the event of an owner move-in, Ellis Act eviction, or property redevelopment. Conduct one workshop for tenants and one workshop for landlords annually, in multiple languages.

Aim to educate at least 20 tenants
and landlords annually.

Ongoing annual task. Pending/Not Started
PROGRAM 6.6 Fair Housing PDS
General Fund &
CDBG Grant
Funds
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
O Enforce relocation payment required through imposition of liens in cases where landlords fail to pay required assistance.

Establish a complaint tracking
system by June 2024 through Code
Enforcement with a goal of
minimizing complaints through
outreach and education and of
ensuring that all tenants receive
required relocation payments.

Ongoing task. Pending/Not Started
PROGRAM 6.7 Community
Outreach
Program
PDS
General Fund
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
A Partner with Human Services for community outreach with a focus on traditionally underrepresented groups. Meet with Human Services representatives bi-annually to formulate strategies aimed at engaging the City’s most vulnerable populations
Reach at least 20 households
annually through work with
Human Services.

Bi-annually; initiate first
meeting by January 2024.

Pending/Not Started
PROGRAM 6.7 Community
Outreach
Program
PDS
General Fund
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
B The City shall continue to facilitate opportunities for all residents and stakeholders to provide meaningful and effective input on proposed planning activities early on and continuously
throughout plan development and the public review process.

Outreach efforts to disadvantaged communities, and
engagement materials in multiple languages will be a priority, as will ensuring that all public meetings are in locations accessible to all persons.

Increase public participation rates
amongst City’s underrepresented
groups by at least 20% by the end
of the planning period.

Ongoing task. Ongoing/Standard
Operations
PROGRAM 6.7 Community
Outreach
Program
PDS
General Fund
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
C Create a website that provides relevant housing application and processing information to the home building community.

Support the development of 1,556
units for very-low income, 896
units for low income, 1,013 units
for moderate income, and 2,621
above-moderate households
during the planning period.

Complete by January 15,
2024 and update annually.

Pending/Not Started

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6.3, 6.4, 6.5
D Study and research what other jurisdictions have implemented to provide affordable housing preferences for historically disadvantaged populations
Report back to the City Council
with findings of the research
Complete by June 30,
2024 and update annually.

Pending/Not Started
PROGRAM 6.7 Community
Outreach
Program
PDS
General Fund
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
E Promote general awareness of lower-income housing availability by providing the location, type, and contact information of housing developments in the City on the website.

Promote availability of lower-
income housing opportunities.

Complete by January 15,
2024 and update annually.

Pending/Not Started
PROGRAM 6.7 Community
Outreach
Program
PDS
General Fund
Goal: 6
Policies: 6.1, 6.2,

6.3, 6.4, 6.5
F Develop a language access policy to ensure residents with limited English proficiency have accessible information.

Promote housing opportunities
across the City.

Complete by January 15,
2024.

Pending/Not Started
Source: City of Palo Alto Council Adopted Draft 2023-2031 Housing Element

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Total Units Permitted by Year
YEAR 011 YEAR 02 YEAR 03 YEAR 04 YEAR 05 YEAR 06 YEAR 07 YEAR 08 YEAR 09 Income Level RHNA Allocation by Income
Level 2023 2024 2025 2026 2027 2028 2029 2030 2031
Total Units
Permitted by
Income Level
Total Remaining
RHNA by Income
Level
% of RHNA
Permitted
Deed Restricted 39 39
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 63 63
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
TOTALS 6,086 261 13 0 0 0 0 0 0 0 274 5,812 4.50%
SB35 50% Affordability Requirements Above
Mod DU Need 328 655 983 1,311 1,638 1,966 2,293 2,621
SB35 50% Affordability Requirements CPA
Above Mod DU Permitted (Cumulative) 159 172 172 172 172 172 172 172 SB35 50% Affordability Requirements Met/Not
Met Not Met Not Met Not Met Not Met Not Met Not Met Not Met Not Met ADU Permitted by Year 127 13
2023-2031 Sixth Housing Element Cycle - Regional Housing Needs Allocation Progress Above Moderate

0.00%

7.03%

0.00%

6.56%13
778
833
1,013
2,449172
1,013
896
778
2,621 159
739 5.01%
Moderate
Low
Very Low
Extremely Low 778
NOTES:

1. For the Bay Area the "projection period" or the time period for which the Regional Housing Need is calculated is June 30, 2022– December 15, 2030. The "planning period" for the Bay Area, or the time frame between the due date for one housing element and the due date for the next housing element, is January 31, 2023 – January 31, 2031. California Department of Housing & Development (HCD) combined RHNA housing production for Bay Area jurisdictions for years 2022 & 2023 for consistency.

ATTACHMENT D
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: March 11, 2024
Report #:2312-2463
TITLE
Stanford University Medical Center (SUMC) Annual Report to Council for Fiscal Year 2022-2023

RECOMMENDATION
Staff recommends that the City Council:

1. Review the Stanford University Medical Center (SUMC) Annual Report for Fiscal Year 2022-2023, and find that Stanford Hospitals & Clinics, Lucile Packard Children’s Hospital, and Stanford University (SUMC Parties) have complied in good faith with the terms and conditions of the SUMC Development Agreement;

2. Find that the SUMC Parties are not in default with the terms and conditions of the Agreement in all sections; and

3. Accept the City of Palo Alto’s (City) Annual Report Supplements regarding the funds received from the SUMC Parties, as required under Section 12(d) of the Development Agreement (Attachment E).

EXECUTIVE SUMMARY
The City Council is required to annually review the SUMC Development Agreement (“Agreement”) to confirm compliance with the Agreement’s terms. The Agreement is between Stanford Hospital and Clinics, Lucile Packard Children’s Hospital, Stanford University (SUMC Parties or SUMC), and the City of Palo Alto. SUMC prepared their SUMC Annual Report for Fiscal Year (FY) 2022-2023 to discuss how they met their compliance obligations during the reporting time period (Attachment A). The City prepared this Annual Report to Council to discuss both SUMC’s and the City’s compliance activities during the FY 2022-2023 reporting period, as well as disseminate the City’s required Supplement to the Annual Report. The Supplement contains an accounting of the funds received from SUMC and expenditures of those funds during the reporting period.

As documented in this Annual Report to Council, both SUMC and the City are in compliance with the terms of the Agreement for the reporting period FY 2022-2023.

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BACKGROUND
On June 6, 2011, the Council approved Comprehensive Plan amendments, zoning changes, a conditional use permit, SUMC design guidelines, annexation, and architectural review applications for the Stanford University Medical Center Facilities Renewal and Replacement Project (the “Projects”). The Projects include the construction of the new Stanford Hospital and Clinics buildings, an expansion of the Lucile Packard Children’s Hospital (LPCH), construction of new School of Medicine (SOM) buildings, renovation of the existing Hoover Pavilion, construction of a new medical office building and parking garage at Hoover Pavilion, and roadway improvements along Welch Road and Durand Way. The Agreement, vesting these approvals, became effective on June 6, 2011 and continues for 30 years from the effective date.

This Annual Report to Council is for the FY 2022-2023 reporting period, which is the 12th year of the Agreement. The FY 2021-2022 annual report found SUMC and the City to be in compliance with the Agreement.1 Previous annual reports and compliance documentation can be found via the weblinks in Attachment B.

ANALYSIS
Agreement Section 12, “Periodic Review of Compliance,” requires City Council to confirm SUMC Parties’ compliance with the terms of the Agreement. Discussion items in this report are intended to guide City Council through the many aspects that SUMC and City staff monitor and track throughout the year to ensure compliance.

The SUMC Annual Report for FY 2022-2023 (Attachment A) describes the activities related to Agreement implementation and ongoing annual progress toward meeting the following obligations in Section 5 of the Agreement, “SUMC Parties’ Promises:” •Health Care Benefits;
•Fiscal Benefits;
•Traffic Mitigation and Reduced Vehicle Trips;
•Linkages (Pedestrian, Bicycle, and Transit);
•Infrastructure, Sustainable Neighborhoods & Communities, Affordable Housing; and •Climate Change.

Staff prepared a summary of the Section 5 obligations and the compliance status (Attachment C).

Agreement Section 12 also includes the requirement for demonstration of good faith compliance with the Agreement. Toward this end, SUMC timely submitted all the reports required of the SUMC Parties for FY 2022-2023.

Construction Activities and Net New Square Footage
1 The SUMC Annual Report to Council Fiscal Year 2021-2022 went before City Council at their April 17, 2023 meeting, see Consent Calendar Item 6 at the following meeting weblink:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1115.

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SUMC discusses their construction activities for FY 2022-2023 in the SUMC Annual Report (Attachment A). City staff reviewed the information regarding SUMC net new square footage in the report and determined this information is complete and correct. A summary of construction activities and tracking of square footage demolished and added can be found in Attachment D.

Traffic Mitigation and Reduced Vehicle Trips
SUMC implemented all required transportation demand management (TDM) obligations in FY 2022-2023, such as purchasing Caltrain Go Passes, funding the AC Transit U-Line, and administering other activities. Summaries of these activities can be found in Attachments A and C.

Despite continuing to implement all TDM programs, as well as enhancing communications and promotions, SUMC found that they did not meet the alternative mode share milestone targets outlined in the Agreement for FY 2022-2023. However, the SUMC alternative mode share rate had increased to 25.6% from 19.9% in FY 2021-2022.

To clarify, not meeting the alternative mode share targets during a reporting period is not itself a default under the Agreement, as the Agreement outlines next steps if a target was not achieved, such as the payment of fees, and contains a Force Majeure clause.

Amendment to Development Agreement
An application to amend the Agreement, submitted by SUMC on September 7, 2022,2 was approved by the City Council and executed on December 28, 2023 (Development Agreement Amendment Number 1). The amendment modified language to provide clarity on how to implement the existing alternative transportation mode share targets with respect to the SUMC claim of the applicability of Force Majeure.3 The amendment also included an updated timeline for SUMC to meet the alternative mode share targets. For more information about the amendment, please refer to the City Council reports for October 23, 2023 and November 27, 2023.4
2 Anticipating the ongoing influence of the COVID-19 pandemic on its ability to achieve the alternative transportation mode share targets, SUMC proposed an amendment to the original Development Agreement.

SUMC suggested that the amendment language would provide clarity as to how to implement the existing alternative transportation mode share targets and penalty payments as written in Section 5(c)(ix), given their claim of the applicability of Section (18)(c) Force Majeure in the Development Agreement. 3 Development Agreement Section 18(c) Force Majeure provides that performance by SUMC or the City is excused during any period of “Permitted Delay,” such as when a performance delay occurs due to circumstances beyond the reasonable control of a party to the SUMC Development Agreement. Examples of circumstances beyond reasonable control of a party include (a), acts of god, including without limitation earthquakes, floods, fire, and other natural calamities, (b) civil commotion; (c) riots or terrorist acts; (d) strikes or other forms of material labor disputes; (e) shortages of materials or supplies; and (f) vandalism. 4 The City Council October 23, 2023 Action Item 5 staff report and meeting minutes can be found online here:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13044.

The Council November 27, 2023 Consent Calendar Item 13 staff report and meeting minutes can be found online here: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13307 Item 6
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Construction Sales and Use Tax Monitoring Report
SUMC submitted the annual Construction Sales & Use Tax Monitoring Report on June 30, 2023 for the preceding calendar year. The City sent its required response. Based upon the City’s review of the annual Construction Sales and Use Tax Monitoring Report, revenues for calendar years 2011 through 2022 have totaled $5,467,628. This annual reporting assists in the process of ensuring that the City receives no less than $8.1 million in construction sales and use tax revenue by December 31, 2025.

Section 5(b)(ii) of the Agreement discusses how SUMC and the City should address any surplus or shortfall in the amount of construction sales and use tax received by the City. Discussion and final reconciliation of any surplus or shortfall in the revenue amount that the City received would occur in and after August 2026. Given the annual decline in construction sales and use tax revenue since calendar year 2020 to present, it is possible that there might be a shortfall relative to the $8.1 million required. In that case, SUMC would make a payment to relieve that shortfall in FY 2026-2027 from the Fund for Healthcare Services, as discussed under Development Agreement Section 5(a)(ii). After this reconciliation, SUMC would commence activity in the Fund for Healthcare Services for 10 years from 2026 to 2036. This activity would be reported in the SUMC Annual Report for each fiscal year.

Supplement to the Annual Report
Section 12 of the Agreement requires the City to prepare a Supplement to the Annual Report, which is included in this report as Attachment E. This Supplement is to contain an accounting of the funds received from SUMC, including:
•Description of the account balances for each of the funds maintained by the City under Section 5 of the Agreement;
•Expenditures from each of the funds; and
•Purposes for which the expenditures were used.

Section 12 specifies preparation of the Supplement within 45-days of the June and July receipt of the annual reports by SUMC, but there is no penalty for not doing so. After the close of the Fiscal Year, the City conducts an annual audit of the funds in Fall/Winter to demonstrate good faith in implementing the Agreement.

FISCAL/RESOURCE IMPACT
There are no fiscal or resource impacts resulting from City Council review of the SUMC Agreement to confirm compliance with its terms. Planning for use of SUMC funds occurs separately during the City’s Annual budgeting process.

STAKEHOLDER ENGAGEMENT
Staff did not perform specific community outreach related to preparation of this annual report.

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project entitlements continue to be processed through the City’s standard review processes, as discussed in the Agreement and other entitlements.

ENVIRONMENTAL REVIEW
Reviewing and making findings regarding SUMC and City compliance with the Agreement is not a project under the California Environmental Quality Act and no environmental assessment is required for the annual compliance review. An environmental impact report for the entire SUMC project was prepared and certified by the City Council prior to approval of the Agreement.

ATTACHMENTS
Attachment A: SUMC Annual Report Fiscal Year 2022-2023
Attachment B: Weblinks to Prior SUMC Annual Reports
Attachment C: SUMC Development Agreement Section 5 Compliance Table Attachment D: SUMC Construction Activities and Net New Square Footage Summary Attachment E: Supplement to the Annual Report Fiscal Year 2022-2023 APPROVED BY:

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PREPARED FOR THE CITY OF PALO ALTO | JULY 6, 2023
2022-23 ANNUAL REPORT
Image Courtesy of Nearmap US Inc, 2023
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CONTENTS
EXECUTIVE SUMMARY 1
BACKGROUND AND PURPOSE 2
2022-2023 SUMMARY OF PROGRESS 3
LUCILE PACKARD CHILDREN’S HOSPITAL 3
STANFORD HEAL TH CARE 4
SCHOOL OF MEDICINE 5
BLAKE WILBUR DRIVE ROADWAY EXTENSION 6
NET NEW SQUARE FOOTAGE 7
COMPLIANCE WITH DEVELOPMENT AGREEMENT OBLIGATIONS 8
HEAL TH CARE BENEFITS 8
SECTION 5(A)(II). FUND FOR HEALTHCARE SERVICES 8
SECTION 5(A)(III). FUND FOR COMMUNITY HEALTH AND SAFETY PROGRAMS 8 PALO AL TO FISCAL BENEFITS 8
SECTIONS 5(B)(I) AND 5(B)(II). PAYMENT OF SALES AND USE TAXES 9 SECTION 5(B)(III). FUNDING OF OPERATING DEFICIT 9
SECTION 5(B)(IV). PAYMENT OF UTILITY USER TAX 9
SECTION 5(B)(V). SCHOOL FEES 10
TRAFFIC MITIGATION AND REDUCED VEHICLE TRIPS 10
SECTION 5(C)(II). MENLO PARK TRAFFIC MITIGATION 10
SECTION 5(C)(III). EAST PALO ALTO VOLUNTARY MITIGATION 10 SECTION 5(C)(IV). CONTRIBUTIONS TO AC TRANSIT 10
SECTION 5(C)(V). OPTICOM PAYMENTS 11
SECTION 5(C)(VI). CALTRAIN GO PASSES 11
SECTION 5(C)(VII). MARGUERITE SHUTTLE SERVICE 11
SECTION 5(C)(VIII). TRANSPORTATION DEMAND MANAGEMENT COORDINATOR 12 SECTION 5(C)(IX). MONITORING OF TDM PROGRAMS 12
LINKAGES 13
SECTION 5(D)(I). INTERMODAL TRANSIT FUND 13
SECTION 5(D)(II). QUARRY ROAD FUND 14
SECTION 5(D)(III). STANFORD BARN CONNECTION 14
INFRASTRUCTURE, SUSTAINABLE NEIGHBORHOODS AND COMMUNITIES, AND AFFORDABLE HOUSING 14 SECTION 5(E). 14
CLIMATE CHANGE 15
SECTION 5(F). CLIMATE CHANGE FUND 15
SATISFACTION OF CONDITIONS OF APPROVAL 15
SECTION 5(H). SATISFACTION OF ALL CONDITIONS OF APPROVAL 15 CONCLUSION 16
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ANNUAL REPORT 2022-23 1

EXECUTIVE SUMMARY
On June 6, 2011, the Stanford University Medical Center parties (now Stanford Medicine)—comprised of Stanford Hospital and Clinics (now Stanford Health Care), Lucile Packard Children’s Hospital, and Stanford University—entered into a Development Agreement with the City of Palo Alto, committing to provide a range of community benefits in exchange for vested development rights to develop and use the Stanford Medicine Renewal and Replacement Project (“Renewal Project”) facilities in accordance with the approvals granted by the City, and a streamlined process for obtaining subsequent project approvals.

The Renewal Project—driven by a growing demand for healthcare services, state-mandated seismic safety requirements, and the need to replace outmoded facilities with modern, technologically advanced spaces—is transforming the way that healthcare is delivered and research is conducted.

Today, twelve years after the execution of the Development Agreement, the Lucile Packard Children’s Hospital Expansion and the new Stanford Hospital are now open for patient care, and the School of Medicine has completed the first phase of development of its replacement facilities, with its BioMedical Innovations building open for research. Interior renovations within the 1989 portion of the preexisting Stanford Hospital facility have now commenced, and are expected to continue for the next several years, bringing the facility up to modern healthcare standards.

Against this backdrop, Stanford Medicine submits its Annual Report in compliance with Section 12(c) of the Development Agreement, and looks forward to continued collaboration with the City of Palo Alto in advancing the goals of both Stanford Medicine and the broader community.

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2 ANNUAL REPORT 2022-23

BACKGROUND AND PURPOSE
The Palo Alto City Council’s unanimous approval of the entitlements for the Stanford Medicine Renewal and Replacement Project in July 2011 has paved the way for a historic investment in new and replacement facilities for Stanford Medicine. The project approvals—including new zoning for the Renewal Project sites, a conditional use permit, architectural review approval, and the execution of a Development Agreement—allow for the construction of approximately 1.3 million net new square feet of hospital facilities, clinics, medical offices, and medical research spaces, and are enabling the Hospitals to optimize the delivery of healthcare services to patients, and maintain their position as leading providers of world-class healthcare.

In order to facilitate this important replacement and expansion work, the Stanford Medicine parties entered into a Development Agreement with the City of Palo Alto, which includes a comprehensive package of community benefits and additional development conditions. In exchange for these benefits, the City has vested for a period of 30 years Stanford Medicine’s rights to develop and use the property in accordance with the project approvals, and agreed to streamline the process for obtaining subsequent approvals.

The terms of the Development Agreement (Section 12(c)) provide for a periodic review of compliance, and require that Stanford Medicine submit an Annual Report to the City of Palo Alto’s Director of Planning and Community Environment each year within 30 days of the anniversary of the agreement effective date (June 6, 2011). The Annual Report is to summarize Stanford Medicine’s progress on the Renewal Project, including a list of net new square footage for which a certificate of occupancy has been received, and a description of the steps that Stanford Medicine has taken to comply with the obligations listed in Section 5 of the Development Agreement. With this report, Stanford Medicine fulfills these requirements.

Within 45 days of receipt of this Annual Report, the City will prepare a Supplement to the Annual Report, to provide an accounting of the City’s balances and expenditures from each of the City Funds and how they were used.

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ANNUAL REPORT 2022-23 3
2022-2023 SUMMARY OF PROGRESS
The Renewal Project has reached key milestones in recent years, with the opening of the Lucile Packard Children’s Hospital expansion in 2017 and the opening of the New Stanford Hospital in 2019, and most recently the opening of the School of Medicine’s BioMedical Innovations building in 2020 1 . While the
COVID-19 pandemic changed the pace of progress on the Renewal Project, as Stanford Medicine focused resources on pandemic response, including launching clinical trials for therapeutic treatments for COVID-19 and establishing community testing and vaccination sites, it has also highlighted the importance of modern, state-of-the-art facilities to support Stanford Medicine’s research and patient care.

The section to follow provides an overview of central goals for the project elements that presently are under construction or nearing construction, a synopsis of progress to date, as well as a preview of near- term upcoming activities.

LUCILE PACKARD CHILDREN’S HOSPITAL
In response to growing community needs for specialized pediatric and obstetric care, Lucile Packard Children’s Hospital opened an expanded facility in late 2017. The new Main building, located adjacent to the preexisting Lucile Packard Children’s Hospital (West building), provides patients and doctors with the most modern clinical advancements and technology, while also creating a more patient- and family- centered environment of care, with additional single-patient rooms and more spaces for families to be with their child during treatment and recovery.

The LPCH Main building features a new entrance lobby, public concourse with dining, three floors of nursing units, and new patient rooms. Spaces have been designed with an attention to natural light and views, and the exterior grounds—more than 3.5 acres of outdoor areas and gardens—provide a park-like setting for patients, families, and visitors.
1 Temporary certificate of occupancy was issued in 2020; final certificate of occupancy was issued in 2021.

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4 ANNUAL REPORT 2022-23
LPCH is currently planning for improvements to its preexisting West building which will modernize its infrastructure and provide a more comfortable patient experience. These improvements include a redesigned main lobby entry and drop-off for the West Building; plans were formally submitted to the City for Architectural Review in Summer 2022 and are currently under staff review.

STANFORD HEALTH CARE
Stanford Health Care is constructing new and replacement hospital facilities to usher in a new era of advanced patient care. Growth in patient volumes and rapidly changing medical technology have rendered much of the existing midcentury hospital infrastructure inadequate, while new seismic safety requirements have accelerated the need to construct replacement facilities.

In November 2019, Stanford Health Care’s first phase of facilities renewal completed as the New Stanford Hospital received its license from the State Department of Public Health and opened to patient care. With the new Stanford Hospital now complete, Stanford Health Care has begun a series of renovations within its preexisting facilities, including the conversion of shared patient rooms into private rooms within the 1989 portion of the Hospital; this renovation work is proceeding in phases over the next several years.

In addition, to enable the conversion of shared patient rooms to private rooms, Stanford Health Care is also planning an addition to the preexisting Hospital of approximately 37,000 square feet. This proposed addition received Architectural Review approval in March 2022, and a City grading / excavation permit was issued in June 2022. Grading activity is ongoing.
2022-2023 SUMMARY OF PROGRESS
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ANNUAL REPORT 2022-23 5

SCHOOL OF MEDICINE
The Stanford University School of Medicine is replacing its outmoded research buildings with new state-of-the-art facilities designed to support contemporary translational research. The new facilities will accommodate 21
st century medical advancements and enable the development of new medical innovations, featuring integrated laboratory suites, with easier access between labs and support facilities, enabling transparency, flexibility, and collaboration.

The first phase of School of Medicine development (BioMedical Innovations Building 1, or “BMI-1”) is now complete, having received a certificate of occupancy in Spring 2021, and features four above-grade floors of research labs and light-filled gathering places, and a lower basement level for utility support, as well as a connective tunnel to other nearby research facilities. Building interiors were designed for best practices for laboratory design safety and space allocation, with a flexible template to maximize efficient use of space and ease of renovation. The four above-grade floors provide space for a mix of disciplines, basic and clinical research, wet and dry labs, and leading-edge translational studies. 2022-2023 SUMMARY OF PROGRESS
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BLAKE WILBUR DRIVE ROADWAY EXTENSION
As required by the 2011 Project Approvals, a new link roadway will be established between Sand Hill Road and Welch Road; this roadway will connect Durand Way to Blake Wilbur Drive, and will provide an important automobile, bicycle, and pedestrian connection in the vicinity of the Medical Center.

Specifically, it will serve as an uncongested route for emergency vehicles accessing the medical campus via Sand Hill Road, and will provide improved access to both the Main Medical Campus and the outer Welch medical office buildings. The scope includes two travel lanes in each direction, Class II bicycle lanes, sidewalks with planter strips including new tree plantings and bioretention areas, new signal poles, and underground utilities. The roadway design was approved at the schematic level by the Architectural Review Board in 2011, but design development and construction were not immediately able to advance as the impacted site was under third-party lease until 2020. Design work resumed in 2020, and staff- level Architectural Review approval for the roadway improvements was issued in late 2021. Grading and Street Work permits were issued in Spring 2023. Construction activities are ongoing and are anticipated to be complete in Fall 2023.
2022-2023 SUMMARY OF PROGRESS
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2022-2023 SUMMARY OF PROGRESS

NET NEW SQUARE FOOTAGE
The following table summarizes the net new square footage for which a certificate of occupancy has been issued2.

PROJECT COMPONENT GROSS SQUARE

FOOTAGE

STANFORD HEALTH CARE
1101 Welch demolished (40,100)
500 Pasteur 719,266
Total 679,166
LUCILE PACKARD CHILDREN’S HOSPITAL EXPANSION
701 Welch demolished (56,300)
703 Welch demolished (23,500)
Lucile Packard Children’s Hospital Expansion 446,088
Total 366,288

SCHOOL OF MEDICINE
BioMedical Innovations building 196,921
Partial decant of Boswell, Grant, Alway, Lane, Edwards (22,614) Total 174,307

HOOVER PAVILION
Miscellaneous shops and storage demolished (13,831)
Stanford Neuroscience Health Center (Hoover MOB) 91,605 Total 77,774
2 The square footage figure for the New Stanford Hospital has been adjusted by 5 sf from that reported in the 2021-22 Annual Report to account for a typographical error.

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COMPLIANCE WITH DEVELOPMENT AGREEMENT OBLIGATIONS
This section of the Annual Report summarizes the steps that Stanford Medicine has taken to comply with its obligations under Section 5 of the Development Agreement.

HEALTH CARE BENEFITS
In addition to the health care funds listed below, Stanford Medicine provides certain intrinsic benefits to the community, as both a global leader in medical care and research, and as a community healthcare services provider. The Renewal Project enables Stanford Medicine to continue its important work, and the addition of more beds for adults and children will help to alleviate overcrowding. Additionally, the new hospital facilities provide critical emergency preparedness and response resources for the community in the event of an earthquake, pandemic, or other major disaster.

Section 5(a)(ii). Fund for Healthcare Services
The Hospitals have designated the amount of $3 million for Healthcare Services, which will increase to $5.6 million by December 31, 2025. No further action is required until 2026. This amount will be reconciled with the construction use tax payments as described in Development Agreement Section 5(b) (ii)(C), and will be spent between 2026 and 2036.

Section 5(a)(iii). Fund for Community Health and Safety Programs Stanford Medicine has contributed a single lump-sum payment of $4 million to establish a Community Health and Safety Program Fund for the City of Palo Alto. This fund is to be distributed to selected community health programs that benefit residents of the City, including the Project Safety Net Program, a community-based mental health plan for youth well-being in Palo Alto. A joint committee is to be established to evaluate proposals regarding the other specific programs to receive funding, composed of two representatives selected by Stanford Medicine and two representatives selected by the City; this committee shall make annual recommendations to the City Council regarding proposed disbursements from the Community Health and Safety Program Fund, and the City Council shall use its reasonable discretion to decide whether to accept, reject, or modify the joint committee recommendations.

Stanford Medicine provided the entire required contribution to the Community Health and Safety Program Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision, though in the past year Stanford Medicine has engaged with City staff to establish the joint committee to evaluate proposals for programs to receive funding. Based on this engagement, the City intends to use the remaining funds to support the Psychiatric Emergency Response Team (PERT), which will be operated in partnership with the Santa Clara County Behavioral Health Services Department. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

PALO ALTO FISCAL BENEFITS
The Stanford Medicine Renewal Project brings considerable fiscal benefits to the City of Palo Alto. The project was expected to generate $8.1 million in sales and use tax revenues for the City, and multiple mechanisms have been put into place to ensure that this target is met. The Development Agreement also provides for further fiscal benefits to the City, including a payment by Stanford Medicine to fund the City’s operating deficit, and the payment of utility user taxes and school fees.

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Sections 5(b)(i) and 5(b)(ii). Payment of Sales and Use Taxes As required by the Development Agreement, Stanford Medicine submitted its annual Construction Sales and Use Tax monitoring report to the City on June 30, 2023. The Stanford Medicine parties will continue to submit such a report annually during the construction period for the Renewal Project so that the City can determine the share of construction use taxes that it has received as a result of the Renewal Project.

Each year, within 60 days of receiving the monitoring report, the City will provide its determination of the amount of construction use taxes that it has received as a result of the Renewal Project during the preceding calendar year. In August 2026 or soon thereafter, Stanford Medicine and the City will conduct a reconciliation process to confirm that the City has received at least $8.1 million in construction use taxes as a result of the Renewal Project, as further described in Development Agreement Section 5(b)(ii).

To date, Stanford Medicine has taken the following steps detailed below to maximize the City’s allocation of sales and use taxes associated with Project construction and operation. Documentation of each of these items is included in the 2022 construction use tax monitoring report already submitted. • Stanford Medicine has obtained all permits and licenses necessary to maximize the City’s allocation of construction use taxes derived from the project, including California Seller’s Permits and Use Tax Direct Pay Permits.
• Stanford Medicine has designated and required all contractors and subcontractors to designate the project site as the place of sale of all fixtures furnished or installed as part of the project. • Stanford Medicine has designated and required all contractors and subcontractors to designate the project site as the place of use of all materials used in the construction of the project. • Stanford Medicine has required all contractors and subcontractors to allocate the local sales and use taxes derived from their contracts directly to the City. Stanford Medicine has used best efforts to require contractors and subcontractors to complete and file any forms required by the State Board of Equalization to effect these designations.
• Both Hospitals have obtained use tax direct pay permits from the State of California for their existing facilities in order to increase the City tax allocation for the Hospitals’ purchases. The Hospitals will maintain the use tax direct pay permit for the life of the project. • Finally, Stanford Medicine has assisted the City in establishing and administering a Retail Sales and Use Tax Reporting District for the Renewal Project, to enable the City to track the generation, allocation, reporting and payment of sales and use taxes derived from the Project.

Section 5(b)(iii). Funding of Operating Deficit
In order to assure that City costs associated with the Renewal Project do not exceed revenues to the City resulting from construction and operation of the project, Stanford Medicine has provided to the City a single lump sum payment in the amount of $2,417,000. This payment was made on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

Section 5(b)(iv). Payment of Utility User Tax
Stanford Medicine will pay the City a utility user tax at a minimum rate of 5 percent of all electricity, gas, and water charges allocable to new construction completed as part of the project for the life of the project.

This rate may be increased by the City as provided by Section 2.35.100(b) of the Municipal Code. The 5 percent utility user tax is currently being paid by Stanford Medicine.

COMPLIANCE WITH DEVELOPMENT AGREEMENT OBLIGATIONS
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Section 5(b)(v). School Fees
Stanford Medicine will pay to the City—which is then to forward to the Palo Alto Unified School District— school fees upon issuance of each building permit from the City or OSHPD, in the amount that is generally applicable to non-residential development at the time of payment based upon net new square footage, as defined in the Development Agreement.

School fees were paid in 2012 for LPCH and SHC in the amounts of $188,815 and $153,802, respectively. In July 2013, additional school fees were paid in the amount of $7,051 to account for additional program square footage for the New Stanford Hospital and Garage. In May 2014, an additional payment of school fees in the amount of $16,119 was made to account for the incremental square footage associated with the Hoover Medical Office Building, beyond the 60,000 square feet originally planned. In November 2015, additional school fees in the amount of $461.16 were paid to account for incremental square footage for the New Stanford Hospital Garage. In May 2022, school fees in the amount of $22,641 were paid to Palo Alto Unified School District to account for Stanford Health Care’s planned addition to the 1989 portion of the preexisting hospital.

TRAFFIC MITIGATION AND REDUCED VEHICLE TRIPS
Stanford Medicine has taken a number of steps to mitigate the potential traffic impacts projected at full project buildout. Stanford Medicine provides a robust transportation demand management program, offering a variety of incentives for employees to forego driving alone to work. As required by the Development Agreement, Stanford Medicine has taken the additional actions outlined below.

Section 5(c)(ii). Menlo Park Traffic Mitigation
Stanford Medicine agreed to contribute to the City of Menlo Park a total of $3,699,000 for use in connection with traffic mitigation, infrastructure enhancements, and the promotion of sustainable neighborhoods and communities and affordable housing. This contribution has been made in three equal payments; the first payment of $1,233,000 was made on August 19, 2011. The second payment of $1,233,000 was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit. The final payment in the amount of $1,233,000 was made on December 14, 2017, within 30 days from issuance of the first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

Section 5(c)(iii). East Palo Alto Voluntary Mitigation Stanford Medicine has contributed a single lump sum payment of $200,000 to East Palo Alto to be used for roadway and traffic signal improvements on University Avenue. This payment was made on August 19, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. In the event that Stanford Medicine does not meet the alternative transportation mode goals specified in the Development Agreement in the required timeframe, including any period of permitted delay, and is assessed a $4 million payment under Development Agreement section 5(c)(ix)(B), the City will be required to remit $150,000 of such payment to the City of East Palo Alto.

Section 5(c)(iv). Contributions to AC Transit
The Hospitals committed to the following actions within 30 days from issuance of the first Hospital occupancy permit, and have fulfilled these commitments as outlined below:

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• The Hospitals agreed to offer a one-time payment of $250,000 to AC Transit to be used for capital improvements to the U-Line to increase capacity (Section 5(c)(iv)(A)). As required, the Hospitals offered to contribute $250,000 to AC Transit for capital improvements to the U Line; this offer was accepted, and the payment was made on January 5, 2018.
• The Hospitals agreed to offer to make annual payments to AC Transit in a reasonable amount, not to exceed $50,000, to be used for operating costs of the U-Line to maintain a load factor for bus service to the Medical Center of less than 1 (Section 5(c)(iv)(B)). The Hospitals are making annual payments to AC Transit for purposes of U-Line operating costs. • In order to encourage Hospital employees living in the East Bay to use public transit for their commute, the Hospitals committed to using best efforts to lease 75 parking spaces at the Ardenwood Park and Ride lot, or an equivalent location, at a cost not to exceed $45,000 per year (Section 5(c)(iv)(C)). The Hospitals continue to meet this requirement, and currently lease 100 parking spaces in Newark (35263 Fircrest Drive). However, the Fircrest-Ardenwood route that provided service to these spaces was suspended in December 2020 due to the pandemic reducing demand and resulting low ridership. East Bay riders continue to be served by the U Line and DB Express which continue to have capacity to service current demand.

Section 5(c)(v). Opticom Payments
Within 30 days from issuance of the first Hospital occupancy permit, the Hospitals committed to pay $11,200 to the City of Palo Alto to be used for the installation of Opticom traffic control systems at the following seven intersections: El Camino Real/Palm Drive/University Avenue; El Camino Real/Page Mill Road; Middlefield Road/Lytton Road; Junipero Serra/Page Mill Road; Junipero Serra/Campus Drive West; Galvez/Arboretum; and the Alpine/280 Northbound ramp. However, since the time that this commitment was made, the City determined that Opticom systems are outdated, and proposed the purchase and installation of the ATMS.now Emergency.now package, which would allow coordinated prioritization at all City-maintained traffic signals. Agreement to this change in traffic signal priority system is documented in a letter dated December 12, 2017 from the City Manager to the SUMC Parties, which was accepted and agreed to by the SUMC Parties by countersigned letter. The required payment was made on December 12, 2017, within 30 days of issuance of the first Hospital occupancy permit.

Section 5(c)(vi). Caltrain GO Passes
The Development Agreement requires that the Hospitals purchase annual Caltrain GO Passes for all existing and new Hospital employees who work more than 20 hours per week at a cost of up to approximately $1.8 million per year, beginning on September 1, 2015. This obligation is expected to continue for a period of 51 years.

Hospital management accelerated the purchase of the annual GO Pass for Hospital employees, and began providing free GO Passes to employees commencing on January 1, 2012. Annual passes were purchased again for all existing and new eligible employees for 2023.

Section 5(c)(vii). Marguerite Shuttle Service
The Hospitals will fund the reasonable costs, in an approximate amount of $2 million, for the purchase of additional shuttle vehicles for the Marguerite shuttle service, as and when required to meet increased demand for shuttle service between the project sites and the Palo Alto Intermodal Transit Station. In addition, the Hospitals will fund as annual payments the reasonable costs, in an approximate amount of $450,000 per year, to cover the net increase in operating costs for the Marguerite Shuttle. Demand

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for the Marguerite shuttle increased in 2012, and the Hospitals funded the purchase of three new hybrid shuttles to meet this increased demand. Since this time, the Hospitals have funded as annual payments the reasonable costs of the net increase in operating costs for the Marguerite Shuttle.

Section 5(c)(viii). Transportation Demand Management Coordinator The Development Agreement requires that the Hospitals employ an onsite qualified Transportation Demand Management (TDM) Coordinator for Stanford Medicine, commencing on September 1, 2015, and continuing through the life of the Renewal Project.

Because the Hospitals accelerated the purchase of the Caltrain GO Pass, the Hospitals also accelerated the hiring of the TDM Coordinator, filling this position in March 2012. The TDM Coordinator is responsible for overseeing the analysis, development, and implementation of programs to advance the Hospitals’ TDM objectives. Specific duties that are carried out in collaboration with Stanford Transportation include raising awareness among commuters about alternative transportation options and Stanford’s commute incentive programs; providing alternative commute planning assistance and responses to customer inquiries; writing and editing electronic and print communications; coordinating and staffing outreach events, such as free transit pass distributions and employee fairs; and providing alternative transportation information and resources at new employee orientations.

The Hospitals also established a new role, Transportation/TDM Director, that is in addition to the previously established TDM Coordinator role, to lead the effort of increasing the use of alternative transportation among Hospital employees.

Section 5(c)(ix). Monitoring of TDM Programs
The Hospitals are required to submit annual monitoring reports showing the current number of employees employed over 20 hours per week; the number of employees using an alternative transportation mode as documented by a study or survey to be completed by the Hospitals using a method mutually agreeable to the City and the Hospitals; and the efforts used by the Hospitals to attempt to achieve the Alternative Mode Targets identified in the Development Agreement. The Development Agreement specifies

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payments to be made in the event that such targets are not met during particular time periods. Stanford Medicine submitted its 2023 Alternative Mode Share Report to the City on May 31, 2023; this report shows an alternative mode split of 25.6% for the Hospitals, representing an increase of 5.7 percentage points in the alternative mode share relative to the Fall 2021 results (19.9%).

Stepping away from the most impactful times of the pandemic, on-campus Hospital staff have begun shifting back to alternative modes of transportation. In previous years where the pandemic had a pronounced impact on daily life, a continual shift was observed from alternative modes to single- occupancy vehicles. This change in behavior was attributed to reduced levels of transit service at the time and perceived health risks of public transportation. Further exacerbating these issues was the inability for staff to work remotely as they primarily occupy roles which require direct patient interface or otherwise require physical presence. Now that the pandemic is in a different phase, transit service levels have increased and safety concerns on public transit have reduced. However, this transition back to alternative modes of transportation is still ongoing and, as such, the Hospitals are excused from achieving, on schedule, the alternative mode share targets of this section of the Development Agreement.

Due to the pandemic-induced circumstances noted above and as allowed by the Development Agreement, Stanford Medicine has filed a Notice of Intent to Claim a Permitted Delay with the City which establishes that due to the ongoing COVID-19 pandemic the Hospitals are unable to meet the alternative mode share targets on schedule. The Hospitals expect that the period of permitted delay will extend through a period ending one year after the May 11, 2023 expiration of the United States Secretary of Health and Human Services’ determination that a public health emergency exists due to the COVID-19 pandemic. This anticipated period of permitted delay accounts for an end to the current public health emergency, and the gradual return of commuter confidence in alternative transit. During this period, other related obligations would continue to be met, including but not limited to implementing an enhanced TDM program, monitoring progress toward meeting the alternative mode share targets, providing annual reports to the City, striving to maximize use of alternative commute modes by Hospital employees, and meeting with the City on a regular basis to identify potential improvements to the enhanced TDM program. Stanford Medicine has filed an application for an amendment to the Development Agreement to modify the alternative mode share target dates to account for the pandemic.

Stanford Medicine remains committed to increasing its alternative mode share, and enabling employees to travel safely to work using alternative modes.

LINKAGES
To further encourage use of Caltrain, bus, and other transit services, and to enhance and encourage use of pedestrian and bicycle connections between Stanford Medicine and downtown Palo Alto, Stanford Medicine has funded the following specific infrastructure improvements.

Section 5(d)(i). Intermodal Transit Fund
Stanford Medicine has provided to the City one lump sum payment of $2.25 million for improvements to enhance the pedestrian and bicycle connection from the Palo Alto Intermodal Transit Center to the existing intersection of El Camino Real and Quarry Road. Up to $2 million of this amount is to be used by the City for the development of an attractive, landscaped passive park/green space with a clearly marked and lighted pedestrian pathway, benches, and flower borders. Stanford Medicine paid the entire required

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amount for the Intermodal Transit Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

In Summer 2017, prior to issuance of the first Hospital Occupancy Permit, the City completed a temporary path with associated lighting, landscaping / green space, benches, and flower borders from the transit center to the existing crosswalk at the intersection of El Camino Real and Quarry Road. Available funds remaining (approximately $1.69 million) will be applied to the construction of permanent improvements in the future.

Section 5(d)(ii). Quarry Road Fund
Stanford Medicine has provided to the City one lump sum payment of $400,000 for improvements to and within the public right-of-way to enhance the pedestrian and bicycle connection from the west side of El Camino Real to Welch Road along Quarry Road, including urban design elements and way finding, wider bicycle lanes, as necessary, on Quarry Road, enhanced transit nodes for bus and/or shuttle stops, and prominent bicycle facilities. Stanford Medicine paid the entire required amount for the Quarry Road Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used. The City was required to construct the improvements prior to issuance of the first Hospital Occupancy Permit, but as agreed to with Stanford Medicine, delayed implementation of these improvements until utility trenching to the Medical Center was complete. In late 2018, the City completed these improvements, including enhanced crosswalks and bicycle striping and signage.

Section 5(d)(iii). Stanford Barn Connection
Stanford Medicine agreed to construct up to $700,000 of improvements to enhance the pedestrian connection between the Main Medical Campus and the Stanford Shopping Center from Welch Road to Vineyard Lane, in the area adjacent to the Stanford Barn prior to issuance of the first Hospital Occupancy permit. Construction of the improvements completed in November 2017, in advance of issuance of the first Hospital Occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

INFRASTRUCTURE, SUSTAINABLE NEIGHBORHOODS AND COMMUNITIES, AND

AFFORDABLE HOUSING
Section 5(e). Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund
Stanford Medicine agreed to contribute a total amount of $23.2 million toward City of Palo Alto infrastructure, sustainable neighborhoods and communities, and affordable housing. As required by the Development Agreement, this contribution has been made in three equal payments. The first payment, in the amount of $7,733,333, was made on August 25, 2011; the second payment of $7,733,333 was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit; and the final payment of $7,733,333 was made on December 12, 2017, within 30 days from issuance of the

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first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

The City will use $1,720,488 of these funds in the same manner as funds collected under the City’s housing fee ordinance.

CLIMATE CHANGE
Section 5(f). Climate Change Fund
Stanford Medicine agreed to contribute a total amount of $12 million toward City projects and programs for a sustainable community, including programs identified in the City’s Climate Action Plan, carbon credits, and investments in renewable energy and energy conservation. As required by the Development Agreement, this contribution has been made in three equal payments. The first payment, in the amount of $4 million, was made on August 25, 2011; the second payment of $4 million was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit; and the final payment of $4 million was made on December 12, 2017, within 30 days from issuance of the first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

SATISFACTION OF CONDITIONS OF APPROVAL
Section 5(h). Satisfaction of All Conditions of Approval Stanford Medicine will satisfy all Conditions of Approval by the dates and within the time periods required by the project approvals, subject to modifications allowed by the Development Agreement, and has taken several steps in order to ensure that this requirement is met (Section 5(h)). The Conditions of Approval encompass conditions imposed by the Architectural Review Board, mitigation measures enumerated in the Mitigation Monitoring and Reporting Program, and conditions attached to the Conditional Use Permit.

In order to implement, monitor, and report on the implementation of this diverse array of conditions, Stanford Medicine, with input from City planning staff, has created two Excel spreadsheet tracking and reporting tools. These spreadsheets serve as a centralized repository for compliance monitoring information and documentation, and are updated by the Stanford Medicine project teams on a regular basis, and reviewed by the City.

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CONCLUSION
As the Renewal Project completes its twelfth year, Stanford Medicine looks forward to continued engagement with the City of Palo Alto as the project continues to progress.

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Stanford University Medical Center (SUMC) Annual Reports Prior Fiscal Year Annual Reports:
•Fiscal Year 2011-2012
http://www.cityofpaloalto.org/civicax/filebank/documents/31976 •Fiscal Year 2012-2013
https://www.cityofpaloalto.org/civicax/filebank/documents/39991 •Fiscal Year 2013-2014
http://www.cityofpaloalto.org/civicax/filebank/documents/45631 •Fiscal Year 2014-2015
http://www.cityofpaloalto.org/civicax/filebank/documents/51645 •Fiscal Year 2015-2016
https://www.cityofpaloalto.org/civicax/filebank/documents/60896 •Fiscal Year 2016-2017
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=49142.31&BlobID=65285 •Fiscal Years 2017-2018, 2018-2019, and 2019-2020
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2021/11-november/20211101pccs-amended.pdf •Fiscal Year 2020-2021
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220321/20220321pccsm-amended-linked- revised.pdf
• Fiscal Year 2021-2022
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1115 April 17, 2023 City Council Consent Calendar Item 6
Attachment B
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Attachment B - Weblinks
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Reports

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
1 SUMC Development Agreement Compliance: FY 2022-2023
Health Care Benefits
DA
Section Description Summary Activity Complies?
5(a)(ii)
Fund for
Healthcare
Services
Financial assistance
for Palo Alto
residents
SUMC establishment of a $3M fund that will
grow to $5.6M by December 31, 2025. Fund
will be used in even increments over a ten-
year period from 2026-2036 to assist Palo
Alto residents who have self-payment
responsibilities beyond their financial
means, as described in Section 5(a)(ii).

Yes, complies – No activity
required in FY 2022-2023.

SUMC will commence
activity in the Fund for
Healthcare Services for 10
years from 2026 to 2036.

This activity will be
reported in the SUMC
Annual Report for each
fiscal year.
5(a)(iii)
Fund for
Community
Health and
Safety Programs
$4M fund for
selected community
health programs for
Palo Alto residents
First and only payment of $4M on August
25, 2011 to establish City fund. There were
no expenditures from this fund during the
reporting period FY 2022-2023.

Yes, complies - Fund
activity and balances in FY
2022-2023 reported in
Attachment E.

Fiscal Benefits
DA
Section Description Summary Activity Complies?
5(b)(i), (ii)
Payment of
Sales and Use
Taxes
Activities to
maximize sales and
use taxes paid to the
City
SUMC contributes to General Fund Sales and
Use Tax revenues via construction-related
activities. The City reviews the Construction
Sales & Use Tax Monitoring Report that is
submitted by SUMC on June 30 of each year.

Yes, complies - SUMC
timely submitted the
Construction Sales & Use
Tax Monitoring Report for
the previous calendar year.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
2 SUMC Development Agreement Compliance: FY 2022-2023
The City submits a letter to SUMC each year
that notes local tax received from SUMC
project activities for the year. Based upon
the City’s review of the annual Construction
Sales and Use Tax Monitoring Report,
revenues for calendar years 2011 through
2022 have totaled $5,467,628.

The City sent their
required response. This
annual reporting assists in
the process of ensuring
that the City would receive
no less than $8.1M in
construction sales and tax
revenue by December 31,
2025. Section 5(b)(ii) of the
Agreement discusses how
SUMC and the City should
address any surplus or
shortfall in the amount of
construction sales and use
tax received by the City.

Discussion and final
reconciliation of any
surplus or shortfall in the
revenue amount that the
City received would occur
in and after August 2026.

Given the annual decline in
construction sales and use
tax revenue since calendar
year 2020 to present, it is
possible that there might
be a shortfall relative to
the $8.1 million required.

In that case, SUMC would
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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
3 SUMC Development Agreement Compliance: FY 2022-2023
make a payment to relieve
that shortfall in FY 2026-
2027 from the Fund for
Healthcare Services, as
discussed under
Development Agreement
Section 5(a)(ii)
5(b)(iii)
Funding of
Operating
Deficit /
Expansion Cost
Mitigation
$2.417M fund to
assure City costs
associated with the
project do not
exceed revenues
resulting from
construction and
operation of the
project.

Payment of $2.417M on August 25, 2011 to
establish fund. There were no expenditures
from this fund during the reporting period
FY 2022-2023.

Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.
5(b)(iv) Payment of
Utility Users Tax
5% tax on all
electricity, gas, and
water charges on
new construction
Utilities confirmed that billing accounts
were created in past fiscal years when new
meters were set for new construction,
including NSH, NSH Garage, LPCH, and BMI,
and the Utility Users Tax is paid through the
normal billing process for each site.

Yes, complies.
5(b)(v) School Fees
Payment of PAUSD
fees for net new
square footage
$342,617 fee paid for LPCH and NSH
expansion in 2012. $7,051 fee paid for NSH
and NSH Garage expansion in July 2013.
$16,119 fee paid for Hoover Medical Office
Yes, complies - SUMC
made payments to PAUSD
for all net new square
footage for which school
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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
4 SUMC Development Agreement Compliance: FY 2022-2023
Building expansion in May 2014. $461.16 fee
paid to account for incremental square
footage for the New Stanford Hospital
Garage. Additional PAUSD school fees were
paid in FY 2021-2022 for the Nursing Pod
Extension project due to OSHPD requiring
these payments prior to issuance of a
construction shoring permit.
fees apply at the time
permit receipt. Staff will
reconfirm SUMC payment
of PAUSD school fees for
the Nursing Pod Extension
project when the City
issues this permit in a
future fiscal year.

Traffic Mitigation and Reduced Vehicle Trips
DA
Section Description Summary Activity Complies?
5(c)(ii)
Menlo Park
Traffic
Mitigation
$3,699,000 payment
for traffic mitigation,
infrastructure,
sustainable
neighborhoods,
affordable housing
First of three $1.23M payments made on
August 19, 2011. Second payment of
$1.23M made on December 5, 2012. Third
and final payment of $1.23M made on
December 14, 2017, which was within 30
days from issuance of the first Hospital
Occupancy Permit (LPCH).

Yes, complies - SUMC
made all required
payments to Menlo Park,
including the last and final
payment in FY 2017-2018.
5(c)(iii)
East Palo Alto
Voluntary
Mitigation
$200K for roadway
and signal
improvements on
University Ave.
$200K payment made on
August 19, 2011. Yes, complies.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
5 SUMC Development Agreement Compliance: FY 2022-2023
5(c)(iv) Contributions
to AC Transit
U-line capital
improvements, low
load factor ratios,
parking spaces at
Ardenwood Park &
Ride
$250K payment made to AC Transit on
January 5, 2018.

SUMC is also invoiced by AC Transit for
payments throughout the year that total
over the $50K per year discussed in the
SUMC Development Agreement. Payments
to AC Transit are required for the life of the
project.

Since May 2014 and until April 30, 2018,
SUMC Parties leased a park-and-ride facility
on Kaiser Drive near the Ardenwood Park &
Ride. SUMC used an interim temporary
facility through FY 2019-2020. In FY 2020-
2021 and FY 2021-2022, and FY 2022-2023,
SUMC leased 100 parking spaces in Newark
(35263 Fircrest Drive).

Yes, complies.
5(c)(v) Opticom
Payments
$11,200 payment
for Opticom traffic
control system at 7
intersections
$11.2K payment made to the City in FY
2017-2018 within 30 days from issuance of
the first Hospital Occupancy Permit (LPCH).

As the City has upgraded systems, the City
and SUMC agreed through a letter exchange
that the payment could be used for the new
coordinated prioritization signaling at City-
maintained traffic signals.

Yes, complies.

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6 SUMC Development Agreement Compliance: FY 2022-2023
5(c)(vi) Caltrain Go
Passes
SUMC purchase of
passes for all
existing and new
hospital employees
working
>20hrs/week
Go Passes have been purchased per the
Development Agreement since January 1,
2012, including for FY 2022-2023.

Yes, complies.
5(c)(vii) Marguerite
Shuttle Service
Purchase of
additional shuttles
to meet demand
Since 2011, SUMC purchased additional
shuttle buses for the Marguerite Shuttle
service which now includes five renewable
diesel-electric hybrid buses and 23 all-
electric buses. Additional all-electric buses
also came online in FY 2017-2018. Shuttles
were running in FY 2022-2023.

Yes, complies.
5(c)(viii)
SUMC
Transportation
Demand
Management
(TDM)
Coordinator
SUMC hires
coordinator to
promote alternative
transportation
options
TDM Coordinator was hired in March 2012.

This position has since been elevated to a
TDM Program Manager position and the
position remains filled.

Yes, complies.
5(c)(ix) Monitoring of
TDM Programs
Yearly report
regarding
The SUMC parties found that the alternative
mode share milestone target of 33%
outlined in SUMC DA Section 5(c)(ix) was not
met for FY 2022-2023, nor was it above the
Yes, complies -
SUMC timely submitted
their annual Alternative
Mode Share report for FY
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7 SUMC Development Agreement Compliance: FY 2022-2023
alternative transit
mode use
2018 milestone target of 30%. The FY 2022-
2023 alternative mode share rate rose to

25.6% from 19.9% in FY 2021-2022.
2022-2023. A failure to
meet the alternative mode
share targets during a
reporting period is not
itself a default under the
Agreement, as the
Agreement outlines next
steps if a target was not
achieved, such as the
payment of fees, and
contains a Force Majeure
clause. SUMC filed a
Development Agreement
amendment application on
September 7, 2022. At the
close of the FY 2022-2023
reporting period, SUMC’s
application was still under
active review.

Subsequently in FY 2023-
2024, the SUMC Parties
and City Council reached
mutual agreement
regarding an updated
timeline for SUMC to meet
the alternative mode share
targets.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
8 SUMC Development Agreement Compliance: FY 2022-2023
Linkages
DA
Section Description Summary Activity Complies?
5(d)(i) Intermodal
Transit Fund
$2.25M payment to
improve pedestrian
linkages to PA
Intermodal Transit
Center
First and only payment of $2.25M on August
25, 2011 to establish City fund. City
constructed temporary improvements prior
to the issuance of the first Hospital
Occupancy Permit (LPCH) to serve the
linkage goal and functional requirements.

There were no expenditures from this fund
during the reporting period FY 2022-2023.

Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.
5(d)(ii) Quarry Road
Fund
$400K payment to
improve pedestrian
linkages along
Quarry Road
First and only payment of $400K on August
25, 2011 to establish City fund. City
constructed the improvements prior to the
issuance of the first Hospital Occupancy
Permit (LPCH) to serve the linkage goal and
functional requirements.

Yes, complies - As of
FY2019, there is no longer
a fund balance in this
category.
5(d)(iii) Stanford Barn
Connection
SUMC budgets up to
$700K for
connections in the
vicinity of barn
SUMC constructed the Stanford Barn
Connection prior to the issuance of the first
Hospital Occupancy Permit (LPCH) to serve
the linkage goal and facilities are fully
operational.

Yes, complies.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
9 SUMC Development Agreement Compliance: FY 2022-2023
Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing DA
Section Description Summary Activity Complies?
5(e)
Infrastructure,
Sustainable
Neighborhoods
and
Communities,
and Affordable
Housing Fund
$23.2M payment for
these uses
First of three $7,733,333 payments made on
August 19, 2011. Second payment of
$7,733,333 made on December 5, 2012. The
third and final payment of $7,733,333 made
on December 12, 2017, which was within 30
days from issuance of the first Hospital
Occupancy Permit (LPCH). There were no
expenditures from this fund during the
reporting period FY 2022-2023.

Of the funds in the Infrastructure,
Sustainable Neighborhoods and
Communities, and Affordable Housing Fund,
$1,720,488 was to be used for support of
affordable housing. SUMC funding
supported the Stevenson House project in
FY 2013 and the remaining affordable
housing funds were fully exhausted in FY
2020 to support the Wilton Court Housing
Project.

Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2022-2023
10 SUMC Development Agreement Compliance: FY 2022-2023
Climate Change
DA
Section Description Summary Activity Complies?
5(f)
Climate Change
– Sustainability
Programs
Benefit Fund
$12M payment for
climate change-
related projects and
programs
First of three $4M payments made on
August 19, 2011. Second payment of $4M
made on December 5, 2012. The third and
final payment of $4M made on December
12, 2017, which was within 30 days from
issuance of the first Hospital Occupancy
Permit (LPCH). There were expenditures
from this fund during the reporting period
FY 2022-2023.

Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.

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Stanford University Medical Center (SUMC)
FY 2022-2023 Construction Activities and Net New Square Footage Summary Overall, at the Main SUMC site, SUMC is entitled to construct and use up to 3,534,090 total square feet of hospital/clinic and research buildings, as well as associated facilities and infrastructure improvements, including up to 1,265,272 net new square feet. Overall, at the Hoover Pavilion site, SUMC is entitled to construct and use up to 153,343 total square feet of medical office/clinic buildings, as well as associated facilities, including up to 46,169 net new square feet of medical/office buildings.

SUMC Construction Activities FY 2022-2023
SUMC did not add any new square footage in FY 2022-2023, but continued to remove square footage from occupancy in portions of the 1959 Stone Complex. Whereas SUMC had removed 18,472 square feet from occupancy by FY 2021-2022, the total removed from occupancy is 22,614 square feet by FY 2022-2023. This suspension of use provides a temporary option to prevent exceedance of the total occupied square footage allowed in their entitlements. While not triggered in the FY 2022-2023 monitoring period, there are provisions in the SUMC entitlements to have a three-year period (or up to five years with Planning Director approval) whereby SUMC is allowed to exceed the total occupied existing and net new building square footage. This provision is important for ensuring that SUMC can maintain existing operations while also efficiently transfer new uses, equipment, and operations over to the new facilities.

Past SUMC Construction Activities
A total of approximately 133,731 square feet of floor area was previously demolished at the Stanford Hospital, Lucile Packard Children’s Hospital (LPCH), and Hoover Pavilion sites.

New floor area across the SUMC sites reported in previous Fiscal Years include the following:
The new Neuroscience Health Center at the Hoover Pavilion site represents 91,605 new square feet.
Lucile Packard Children’s Hospital (LPCH) Expansion added 446,088 new square feet. The New Stanford Hospital (NSH) garage added 29,744 new square feet. The NSH project added 689,522 new square feet. These two new buildings therefore represent 719,266 new square feet for NSH.
The School of Medicine (SOM) added 196,921 square feet through completion of the Biomedical Innovation Building (BMI).

SUMC Net New Square Footage Summary
As reported in the SUMC Annual Report FY 2022-2023 (Attachment A), the following table summarizes the net new square footage for which a certificate of occupancy has been issued.

Attachment D
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Construction Activities
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Supplement to the Annual Report
Fiscal Year 2022-2023
Prepared by the City of Palo Alto
February 8, 2024
Background and Purpose
On June 6, 2011, the Council approved Comprehensive Plan amendments, zoning changes, a conditional use permit, SUMC design guidelines, annexation, and architectural review applications for the Stanford University Medical Center Facilities Renewal and Replacement Project (the “Projects”). The Projects include the construction of the new Stanford Hospital and Clinics buildings, an expansion of the Lucile Packard Children’s Hospital (LPCH), construction of new School of Medicine (SOM) buildings, renovation of the existing Hoover Pavilion, construction of a new medical office building and parking garage at Hoover Pavilion, and roadway improvements along Welch Road and Durand Way. The SUMC Development Agreement vesting these approvals became effective on June 6, 2011 and continues for thirty (30) years from the effective date.

Per the requirements of Sections 12(a) and 12(d) of the Agreement, the City of Palo Alto is to prepare a Supplement to the Annual Report. This Supplement is to contain an accounting of the funds received from SUMC, including:
•a description of the account balances for each of the funds maintained by the City under Section 5 of the Agreement;
•the expenditures from each of the funds; and
•the purposes for which the expenditures were used.

Fund Accounting
This SUMC Annual Report Supplement covers the period during the 12th year of the Agreement: June 6, 2022 through June 6, 2023. Accounting for the funds outlined extends through the end of the City’s FY 2022-2023.

The specific fund accounts reported in this Supplement are consistent with Section 5 and Sections 12(a), 12(c), and 12(d) of the Agreement. Each fund has been assigned a unique cost center number for accounting purposes. Along with expenditures, this Supplement also shows investment earnings and the allocation of earnings across funds.

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In summary, SUMC has paid approximately $44.3 million in public benefit fees to the City since June 6, 2011 through the FY 2022-2023 reporting period. There were no required new payments from the SUMC Parties during the FY 2022-2023 reporting period.

The first payment of $20,800,333 on August 11, 2011 was for the following funds:
•Fund for Community Health and Safety Programs, Project Safety Net (Section 5(a)(iii)); •Fund for Expansion Cost Mitigation (Section 5(b)(iii)); •Fund for Pedestrian and Bicycle Connections from Intermodal Transit Center to El Camino Real/Quarry Road Intersection (Section 5(d)(i)); •Fund for Public Right of Way Improvements to Enhance Pedestrian and Bicycle Connections on Quarry Road (Section 5(d)(ii));
•Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e)), and
•Fund for Climate Change - Sustainable Programs Benefit (Section 5(f)(i)).

The second payment of $11,733,333 payment on December 5, 2012 was for the following funds:
• Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e)) and
• Fund for Climate Change - Sustainable Programs Benefit (Section 5(f)(i)).

The third payment and final payment of $11,744,533 on December 12, 2017 was for the following funds:
• Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e));
•Fund for Climate Change -Sustainable Programs Benefit (Section 5(f)(i)); and •Fund for Community Health and Safety, Project Safety Net (Section 5(a)(iii)).

Fund Expenditures
Regarding use of SUMC funds during the Fiscal Year 2022-2023 reporting period, the City authorized the following transfer:
•$2,400,000 under the “Climate Change and Sustainability” fund for Bicycle and Pedestrian Transportation Plan Implementation (PL-04010).

Agreement Section 5(a)(iii) requires that a joint committee make annual recommendations to the City Council regarding proposed disbursements from the Community Health and Safety Program Fund, and the City Council may use reasonable discretion to accept, reject, or modify these recommendations. The joint committee includes SUMC representatives and City staff from the City Manager’s Office, Office of Transportation, Administrative Services, and Public Works departments. Projects using Community Health and Safety funds must gain mutual support from members of the joint committee and approval from the City Council. The joint committee met in FY 2022-2023 and supported use of the Community Health and Safety funds toward the City’s Item 6
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Psychiatric Emergency Response Team (PERT). Given that PERT was currently funded by a Santa Clara County grant through June 2023, no Community Health and Safety funds were disbursed in the FY 2022-2023 reporting period.

The Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund contained an original contribution of $1,720,488 for support of affordable housing. SUMC funding supported the Stevenson House project in FY 2013 and the remaining affordable housing funds were fully exhausted in FY 2020 to support the Wilton Court Housing Project.

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City of Palo Alto AUDITED BALANCESStanford Medical Center Development Agreement (Fund 260)Fiscal Year Ended June 30, 2023 Expansion Cost Intermodal Transit Quarry Road Infrastructure &Climate Change Community Total FY 2023 FY 2023Mitigation Improvements Afford Housing & Sustainability Health & Safety Actuals Budget cost centers 26000000 60260010 60260020 60260030 60260040 80260010 Beginnig Fund Balances, 7/1/2022 1,720,190 1,172,897 - 8,244,724 2,702,007 1,081,756 14,921,573 Revenues:Revenues From Stanford - - - - - - - -Investment Earnings / Unrealized gain (loss) 154,668 154,668 275,300Allocate to categories (154,668) (154,668)Allocated Investment Earnings 21,248 14,488 - 101,840 3,730 13,362 154,668 - Total Revenues 21,248 14,488 - 101,840 3,730 13,362 154,668 275,300 Expenditures:Transfer to Capital Projects - (2,400,000) (2,400,000)(2,400,000) Total Expenditures - - - - (2,400,000) - (2,400,000)(2,400,000) FY 2023 Revenues less Exp 21,248 14,488 - 101,840 (2,396,270) 13,362 (2,245,332)(2,124,700) Ending Fund Balances, 6/30/2023 1,741,438 1,187,384 - 8,346,564 305,737 1,095,118 12,676,241 Item 6
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Past and Future Use of Funds
The SUMC funds received by the City are utilized for Operations, as well as support implementation of the City’s Capital Infrastructure Plan. For additional information about the recent past, current, and future use of SUMC funds, please refer to the following:
•Fiscal Year 2023 Adopted Operating Budget document, Special Revenue Funds section; •Fiscal Year 2023 Adopted Capital Improvement Budget document; •Fiscal Year 2024 Adopted Operating Budget Document, Special Revenue Funds section; and the
•Fiscal Year 2024 Capital Improvement Budget document. 1 As outlined above, the SUMC Parties have already paid approximately $44.3 million in public benefit fees to the City since June 6, 2011 through the FY 2022-2023 reporting period. Future fund contributions are not anticipated at this time. However, the City is to receive no less than $8.1 million in Construction Sales & Use Tax revenue by December 31, 2025. Revenues for calendar years 2011 through 2022 have totaled $5,467,628. Section 5(b)(ii) of the Agreement discusses how SUMC and the City should address any surplus or shortfall in the amount of construction sales and use tax received by the City. Discussion and final reconciliation of any surplus or shortfall in the revenue amount that the City received would occur in and after August 2026. Given the annual decline in construction sales and use tax revenue since calendar year 2020 to present, it is possible that there might be a shortfall relative to the $8.1 million required. In that case, SUMC would make a payment to relieve that shortfall in FY 2026-2027 from the Fund for Healthcare Services, as discussed under Development Agreement Section 5(a)(ii). After this reconciliation, SUMC would commence activity in the Fund for Healthcare Services for 10 years from 2026 to 2036. This activity would be reported in the SUMC Annual Report for each fiscal year.
1 Fiscal Year 2023 Adopted Operating Budget document, Special Revenue Funds section:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2023-city- budget/adopted-fy23/operating-budget_final-4.pdf.

Fiscal Year 2023 Adopted Capital Improvement Budget document:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2023-city- budget/adopted-fy23/operating-budget_final-4.pdf.

Fiscal Year 2024 Adopted Operating Budget Document, Special Revenue Funds section:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/adopted/fy-24-palo-alto-adopted-operating-budget-book.pdf.

Fiscal Year 2024 Capital Improvement Budget document:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/adopted/palo-alto-adopted-capital-budget-book.pdf.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: March 11, 2024
Staff Report: 2312-2382
TITLE
Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook, and Power Purchase Agreement; CEQA Status: Not a Project under CEQA Guidelines Sections 15378(a) and (b)

RECOMMENDATION
Staff recommends that the City Council:

1. Approve the attached amended Clean Local Energy Accessible Now (CLEAN) Program Eligibility Rules and Regulations (Attachment A) as follows:
a. Continue the CLEAN Program rate structure for local solar energy resources at 16.5 cents per kilowatt-hour (¢/kWh) until the program reaches 3 MW of solar energy resource capacity, after which the contract rate for solar energy resources reduces to the City’s estimated avoided cost of energy generated by these resources, which is updated to:
i. 9.5 ¢/kWh for a 15-Year Contract Term,
ii. 9.8 ¢/kWh for a 20-Year Contract Term, and
iii. 10.2 ¢/kWh for a 25-Year Contract Term; and
b. Continue the CLEAN Program rate structure for local non-solar eligible renewable resources without any participation cap at a contract price equal to the City’s estimated avoided cost of energy generated by these resources, which is updated to:
i. 9.4 ¢/kWh for a 15-Year Contract Term,
ii. 9.8 ¢/kWh for a 20-Year Contract Term, and
iii. 10.1 ¢/kWh for a 25-Year Contract Term.

2. Approve the attached amended CLEAN Program Handbook (Attachment B) to extend the allowable time to complete a project to three years from the date of execution of the Power Purchase Agreement (PPA) for affordable housing developments.

3. Approve the attached amended Palo Alto CLEAN Program Eligible Renewable Energy Resource PPA (Attachment C) to implement the recommended changes to the CLEAN Program.

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EXECUTIVE SUMMARY
The Palo Alto CLEAN program, established in March 2012, aimed to encourage local generation of solar energy by allowing property owners to install solar systems and sell energy to the City under a fixed-rate, long-term contract. Initially priced at 14 ¢/kWh for a 20-year term, the program failed to attract interest. In December 2012, the Council increased the contract price to

16.5 ¢/kWh, which has been maintained since. Despite no applications in the first four years, since 2016 the program has enrolled six currently operating solar projects totaling 2.84 MW of capacity.

Currently, a customer planning an affordable housing development wishes to submit a CLEAN solar project application but requires an extension of the completion deadline from one to three years to align with permitting and construction timelines for housing projects in Palo Alto. This modification, while maintaining the same initial rate and program capacity, would have minimal financial impact on the City. Staff supports the request and has proposed changes to the program rules and contract designed to accommodate the customer's needs as well as the needs of future residential construction developments that satisfy the basic affordable housing requirements.

Council action will also update the avoided costs for CLEAN projects and make conforming changes in the City’s CLEAN Power Purchase Agreement.

BACKGROUND
In March 2012 the Council adopted the Palo Alto CLEAN program (also commonly referred to as a feed-in tariff, or FIT, program). The program was designed to address the City’s objective of enhancing supply reliability through the pursuit of local generation opportunities. Palo Alto CLEAN enabled property owners to build a new solar system on their property and sell the energy to CPAU under a long-term, fixed-rate, standardized contract rather than simply using the energy on-site.

Though solar developers expressed interest in Palo Alto CLEAN in 2012, the initial contract price (14 ¢/kWh for a 20-year term) proved insufficient to attract any program applications. Council increased the Palo Alto CLEAN price to 16.5 ¢/kWh in December 2012, and has maintained it at that level ever since (last reaffirming it in May 2017). In May 2015, Council added a 25-year contract term option, and expanded the program to include non-solar eligible renewable energy resources, setting their contract prices at the avoided cost level. In May 2017, Council added a 15-year contract term option and updated the avoided cost rates. After receiving zero applications in its first four years, since 2016, the CLEAN program has executed contracts for six solar projects that account for about 2.84 MW of capacity.

ANALYSIS
Staff has recently discussed the program structure with a customer who is working on a residential development that consists of 100% affordable housing units and who intends to submit an application for a CLEAN solar project that would consume a significant portion of the remaining 160 kW of solar program capacity available at the 16.5 ¢/kWh rate. In order for this solar project to go forward, the customer requested that the CLEAN program rules be modified Item 7
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to extend the project completion deadline to align with the City’s permitting and construction timeline for housing developments, from the current one-year timeline to up to three years.

Making this modification to the CLEAN program – while maintaining the same contract rate and program capacity available at this rate – would have virtually no financial impact on the City. As such, staff supports the customer’s request, and the proposed program changes are designed to accommodate that request. Council action will also update the avoided costs for CLEAN projects for the first time since 2017. This change would result in no financial impact to the City.

FISCAL/RESOURCE IMPACT
The following table summarizes staff’s estimates of the current cost of buying energy from solar resources outside of Palo Alto (including transmission and capacity) over a 15-year, 20-year, or 25-year term, as well as the annual excess costs of purchasing the output from an additional 160 kW of local solar projects at a contract price of 16.5 ¢/kWh over those terms. (For non-solar renewable energy projects, and for solar capacity that exceeds the 3 MW program cap on the

16.5 ¢/kWh contract rate the excess cost is zero, because the contract rate is set based on the City’s avoided cost for the energy.)
Contract Term Contract Rate Avoided Cost Annual Excess Cost 15 years 9.5 ¢/kWh $24,500
20 years 9.8 ¢/kWh $23,500
25 years

16.5 ¢/kWh

10.2 ¢/kWh $22,000

STAKEHOLDER ENGAGEMENT
In considering the proposal to extend the completion deadline for certain projects in the CLEAN Program, staff has had multiple conversations with the customer who requested this modification about the impact it would have on their affordable housing development as well as the future residents of this development. Utilities staff also consulted with Planning and Development Services staff with regard to the City’s affordable housing standards and the typical timeline for completion of new residential housing developments. Finally, Utilities views the CLEAN Program modifications recommended here to be minor operational changes with minimal financial implications for the City, and therefore did not present them to the Utilities Advisory Commission (UAC) prior to recommending them to the City Council. However, an informational update on these modifications will be provided to the UAC in the next quarterly report.

ENVIRONMENTAL REVIEW
Adoption of the attached resolution and the associated amendment of the CLEAN Program Eligibility Rules and Requirements and Power Purchase Agreement is not subject to California Environmental Quality Act (CEQA) review these are administrative government activities that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). Eligible customer projects are subject to CEQA analysis on a project-level basis through the City’s development permitting process.

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ATTACHMENTS
Attachment A: Palo Alto CLEAN Program Rules & Requirements (redline) Attachment B: Palo Alto CLEAN Program Handbook (redline) Attachment C: Palo Alto CLEAN Program Power Purchase Agreement (redline) APPROVED BY:

Dean Batchelor, Director of Utilities
Staff: James Stack, Ph.D., Senior Resource Planner
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PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW)

PROGRAM ELIGIBILITY RULES AND REQUIREMENTS
Effective __________
A. PARTICIPATION ELIGIBILITY:

The Palo Alto Clean Local Energy Accessible Now Program (the “CLEAN Program”) is open to participation by any Eligible Renewable Energy Resource, as defined in Section D.4, that satisfies these Program Eligibility Rules and Requirements.

B. TERRITORIALITY REQUIREMENT:

In order to be eligible to participate in the CLEAN Program, an Eligible Renewable Energy Resource must be located in and generating electricity from within the utility service area of the City of Palo Alto.

C. PRICES AND TERM FOR ELIGIBLE RENEWABLE RESOURCES:

The following purchase prices shall apply to the electricity produced by an Eligible Renewable Energy Resource participating in the Program, except as provided in Section D.5.

Solar Energy Resources:

Total Solar Capacity Reserved Contract Term Contract Price 0-3 MW 15, 20 or 25 years $0.165 / kWh
More than 3 MW 15 years $0.088095 / kWh
More than 3 MW 20 years $0.089098 / kWh
More than 3 MW 25 years $0.091102 / kWh
For Solar Energy Resources that straddle multiple pricing tiersmore than one capacity tier, the purchase price shall receivebe a weighted- average purchase priceof the above values based on the amount of their capacity that is contained in each tier.

Non-Solar Eligible Renewable Energy Resources:

Contract Term Contract Price
15 years $0.083094 / kWh
20 years $0.084098 / kWh
25 years $0.085101 / kWh
D. ADDITIONAL RULES AND REQUIREMENTS:

1. The owner of the Eligible Renewable Energy Resource shall enter into an Eligible Renewable Energy Resource Power Purchase Agreement (“PPA”) with the City of Palo Alto prior to delivering energy to the City.

2. An application for participation in the CLEAN Program to sell output to the City (the Item 7
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CLEAN Program Rules &
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PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW)

PROGRAM ELIGIBILITY RULES AND REQUIREMENTS
Effective __________
“Application”) may be submitted at any time. Applications will be considered in the order received.

3. Eligible Renewable Energy Resource means an electric generating facility that: (a) is defined and qualifies as an “eligible renewable energy resource” under California Public Utilities Code Section 399.12(e) and California Public Resources Code Section 25471, respectively, as amended; and (b) meets the territoriality requirement set forth in Section B.

4. The California Energy Commission’s (“CEC”) certification of the Eligible Renewable Energy Resource shall be required within six (6) months of the commercial operation date of the generating facility; the facility’s owner shall provide written notice of the CEC’s certification to the City within ten (10) business days of receipt of said certification. If the City agrees, in its sole discretion, to take delivery of the generating facility’s electricity prior to the CEC’s certification, then, as the facility’s electricity cannot be considered in fulfillment of the City’s RPS requirements, the price that the City will pay for the generating facility’s electricity (the “Pre-Certification Price”) will be set to $0.072 per kWh (for a 15-year contract term), $0.076 per kWh (for a 20-year contract term)), or $0.08 per kWh (for a 25-year contract term), based on the City’s estimated levelized cost of browngeneric power over a 15-year, 20-year, or 25-year period, respectively. Upon the CEC’s certification of the generating facility and the provision of notice of such certification to the City in accordance with this section, the City will pay the Price set forth in Section C of these CLEAN Program Rules and Requirements and the PPA (collectively referred to as the “Contract Price”) for the generating facility’s electricity delivered on and after the date of the CEC’s certification.

The City will, in its sole discretion, “true-up”, as appropriate, the difference between the Contract Price and the Pre-Certification Price for any electricity received and paid for by the City, effective as of the date of certification of the Eligible Renewable Energy Resource.

5. If an Eligible Renewable Energy Resource is authorized to participate in the CLEAN Program, then that Resource shall not be entitled to receive any rebate or other incentive from the City’s Photovoltaic (PV) Partners Program or any other similar incentive program funded by the City’s ratepayers. To the extent any rebate or incentive is paid to the owner of the Resource, that rebate or incentive shall be disgorged and refunded to the City upon 30 days’ notice, if the Eligible Renewable Energy Resource continues to participate in the CLEAN Program. If a rebate or an incentive has been paid to the Eligible Renewable Energy Resource, then that Resource shall be ineligible to participate in the CLEAN Program.

6. All electricity generated by the Eligible Renewable Energy Resource shall be delivered only to the City. No portion of the electricity may be used to offset any load of the generating facility (other than incidental loads associated with operating the generating facility).

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CLEAN Program Rules &
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PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW)

PROGRAM ELIGIBILITY RULES AND REQUIREMENTS
Effective __________

7. A metering and administration fee will be charged to each Eligible Renewable Energy Resource that participates in the CLEAN Program. See Utilities Rate Schedule E-15 (Electric Service Connection Fees).

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CLEAN Program Rules &
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PALO ALTO CLEAN

CLEAN LOCAL ENERGY ACCESSIBLE NOW

PROGRAM HANDBOOK
City of Palo Alto Utilities
May 9, 2017
March 2024
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CLEAN Program
Handbook (redline)

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Questions about Palo Alto CLEAN?
Contact:

Palo Alto CLEAN Program Manager
Ph: 650-329-2241
Email: [email protected]
City of Palo Alto Utilities
250 Hamilton Ave, 3rd Floor
Palo Alto, CA 94301
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CLEAN Program
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Table of Contents
Table of Contents................................................................................................................3 Program Overview ..............................................................................................................4 Summary of Program Rules ................................................................................................4 Timeline of a Palo Alto CLEAN Project ................................................................................6 Development of Palo Alto CLEAN Projects .........................................................................8

1.0 Site Identification and Control............................................................................8

1.1 Types of Projects Accepted..............................................................................8

1.2 Proof of Site Control ........................................................................................8

2.0 Application Process.............................................................................................8

2.1 Submittal Process ............................................................................................8

2.2 Where and When to Submit ............................................................................8

2.3 Submittal Requirements ..................................................................................9

2.4 Reservation Deposit.........................................................................................9

2.5 Determining Priority ......................................................................................10

3.0 Permitting .........................................................................................................11

3.1 Time to Complete Project ..............................................................................11

3.2 Permit Submittal............................................................................................11

3.3 Interconnection Review.................................................................................11

4.0 Construction .....................................................................................................12

4.1 Building Inspection ........................................................................................12

4.2 CEC Pre-Certification......................................................................................12

4.3 WREGIS Registration......................................................................................13

5.0 Commercial Operation......................................................................................13

5.1 Meter Set and Commercial Operation Date ..................................................13

5.2 CEC Certification ............................................................................................13

5.3 Metering and Payment ..................................................................................14 Additional Resources ........................................................................................................15 Item 7
Attachment B - Palo Alto
CLEAN Program
Handbook (redline)

Item 7: Staff Report
Pg.
10 Packet Pg. 190 of 333

Palo Alto CLEAN Program Handbook Revised 5/9/2017March 2024

Page 4 of 14 ends

Palo Alto City CouncilMarch 11, 2024

Palo Alto City Council
March 11, 2024