Agenda packet — Palo Alto City Council, June 17, 2024 (part 5 of 7)

c. Any claim, action, or proceeding against us for losses or damages arising from a Service, must be brought within one year from the date of the act or omission, except as otherwise stated in the account agreement governing the Account.
d. We will have no liability for our failure to perform or delay in performing a Service if the failure or delay is due to circumstances beyond our reasonable control. If we determine that any funds transfer or communications network, Internet service provider, or other system used to provide a Service is unavailable, inaccessible, or otherwise unsuitable for use by you or us, we may, upon notice to you, suspend or discontinue the affected Service.
e. We will only be liable to you for actual damages incurred as a direct result of our failure to exercise reasonable care in providing the Services. Reasonable care requires only that we follow standards that do not vary unreasonably from the general standards followed by similarly situated banks. Our policies and procedures are general internal guidelines for our use and do not establish a higher standard of care for us than otherwise established under Applicable Law. A mere clerical error or an honest mistake will not be considered a failure by us to perform any of our obligations. Our liability to you will be limited to an amount not greater than 10 times our fees incurred in the calendar month immediately before the calendar month in which the loss or damages were incurred (or, if no fees were incurred in that month, our fees incurred in the month in which the losses or damages were incurred).
f. Except in the case of our negligence or intentional misconduct, you will indemnify and hold us, our directors, officers, employees and agents ("Representatives") harmless from all losses or damages that arise out of:
i. The performance of a Service in compliance with the Service Documentation, including any warranty we are required to make to a third party in connection with a Service, ii. An act or omission of any of your agents, couriers, or Authorized Agents, and iii. If the Service includes a license or sublicense of any software, any use or distribution of the software by you or any person gaining access to the software through you that is inconsistent with the license or sublicense.

You will promptly provide us with written proof of loss, and notify us if you become aware of any third party claim related to a Service. You will cooperate fully (and at your own expense) with us in recovering a loss. If we reimburse you, we or our designee will be subrogated to all of your rights (i.e., we will be entitled to assert any legal rights you had relating to the claim).
g. Except as expressly provided otherwise in the Service Documentation, neither party nor its Representatives will be liable to the other party for:
i. Any special, consequential, incidental (including court costs and attorneys' fees), indirect, or punitive losses or damages, or
ii. Business interruption, loss of profits, loss of business, loss of revenue, loss of goodwill, loss of opportunity, loss or injury to reputation, or loss of anticipated savings, whether any claim is based on contract or tort, or whether the likelihood of these losses or damages was known to the other party and regardless of the form of the claim or action.
h. When you send payments on behalf of your third party customers, you agree you are solely liable to your customers for any and all losses those customers may suffer. We exclude all and any liability of whatever nature (including those losses detailed in subsection g above) arising out of your relationship with your customer.

12. Governing law. The Service Documentation will be governed by: (a) U.S. federal law and (b) the law of (i) the U.S. state in which the office of Bank that maintains the Account is located or, if there is no such state or no account associated with such Service, (ii) the State of New York, without reference to its principles of conflicts of laws ("Governing Law").

13. Arbitration agreement. Upon demand by you or us, any dispute or claim arising out of or relating to this Agreement, or the breach thereof, must be submitted to arbitration administered by the American Arbitration Association ("AAA") under its Commercial Arbitration Rules, and must be heard before three arbitrators if the amount in dispute is U.S. $5,000,000 or more or its equivalent in any other currency, and before one arbitrator for amounts in dispute of less
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than U.S. $5,000,000 or its equivalent in any other currency. Arbitration will proceed in a location selected by AAA in the state of the applicable Governing Law, and if there is no such state, the place of arbitration must be New York, NY. The language of the arbitration must be English. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. This arbitration requirement does not limit the right of you or us to: (a) exercise self-help remedies including setoff or (b) obtain provisional or ancillary remedies such as injunctive relief or attachment, before, during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of you or us to submit any dispute to arbitration hereunder, including those arising from the exercise of the actions detailed in (a) and (b) of this section.

14. Jurisdiction. For any proceedings regarding this Agreement (not subject to arbitration as provided in this Agreement), you hereby irrevocably submit to the jurisdiction of the courts of the Borough of Manhattan, New York City, in the State of New York or the federal courts located there and irrevocably agree that all claims in relating to the proceeding may be heard or determined in those courts.

15. Miscellaneous.
a. Severability. Any portion of the Service Documentation which is inconsistent with Applicable Law or Governing Law will be deemed modified and applied in a manner consistent therewith, and we will incur no liability to you as a result of the inconsistency or modification and application to any dispute regarding the Service Documentation.

If any portion or provision of the Service Documentation is deemed unenforceable, it will not affect the enforceability or validity of the remaining Service Documentation nor the enforceability or validity of that portion or provision under the law of any other jurisdiction.
b. Entire agreement. The Service Documentation (and any documents referred to therein):
i. Constitutes the entire agreement between you and us regarding the Services we provide for all Accounts opened with us, and
ii. Supersedes and extinguishes all prior agreements, understandings, representations and warranties of any nature (including requests for proposals and other sales material), whether oral or written, between you and us relating to any of our Services (including any other Master Agreement for Treasury Management Services, but excluding the current Commercial Account Agreement or Global Commercial Account Agreement, as applicable).
c. Electronic agreement. To facilitate execution, the Service Documentation may be executed by a party in the form of an "Electronic Record" (as defined in the Electronic Signatures in Global and National Commerce Act at 15 U.S.C. §7001 et seq. ["ESIGN Act"]). The Service Documentation may be executed in as many counterparts as may be required to reflect all parties' approval, and all counterparts will collectively constitute a single agreement. An "Electronic Signature" (as defined in the ESIGN Act) that can be authenticated will constitute an original and binding signature of a party. The fact that a document is in the form of an Electronic Record or is signed using an Electronic Signature will not, in and of itself, be grounds for invalidating such document. d. No waiver. Neither our failure nor any delay by us in exercising any right or remedy will be deemed to be a waiver of the right or remedy. No course of dealing or waiver of any right on one occasion will constitute a modification of the Service Documentation or be a waiver of that right on a subsequent occasion. e. Third party beneficiaries. Except as otherwise provided in the Service Documentation, no person or entity other than the parties to this Agreement will be deemed to be a third party beneficiary under the Service Documentation.
f. Financial condition. You will provide us promptly upon our request any existing financial statements or other information pertaining to your financial condition or any previously unprepared financial statements which we may require you to prepare and/or to be audited or reviewed by independent certified public accountants acceptable to us.
g. Your representations and warranties. You represent and warrant that: (i) you will not use any Service in a manner that would violate any Applicable Law by you or us; (ii) if you employ an agent in connection with its use of any Service, you represent and warrant to us that: (1) your governing body has duly authorized the agent; (2) you will exercise appropriate controls to ensure each authorized agent does not exceed the authority granted to it; and (3) you will preserve the confidentiality of the Log-On Credentials and immediately notify us if you become aware or suspect that any Log-On Credential may have been compromised.
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h. Use of names. You and we will not use each other's name or refer to our relationship in any solicitation, marketing material, advertisement, news release, or other written, online or oral communication without specific prior written consent for each such use or release, except that we may use your name as a reference in service proposals if we obtain your prior written approval for such use. i. Notices and communications. Either party may provide notice to the other party by mail, personal delivery, or electronic transmission.
i. You will notify us promptly in writing of any change in your name, Address, legal status, or any other changes relevant to the conduct of the Account or affecting your business relationship with us. ii. The term "Address" as used in this Agreement refers to a mailing or electronic address. iii. You will use the Address where your relationship manager or other manager is located and will address any notice to the attention of the manager.
iv. Each party will have a reasonable time after receipt of any notice to act on it. v. Any communication or notice to us from your agent about your use of a Service will be deemed to be a communication from you, and you authorize us to communicate with your agent about any such communication or Service.
vi. We are entitled to rely on any communication or notice from you that we believe in good faith was authorized by your authorized representative or Authorized Agent and, we will have no obligation to verify or authenticate an identity of a sender or signature on any notice or communication, except as expressly provided in the Service Documentation.

16. Survival. Sections 7, 9, 11 - 15 will survive termination of the Services or this Agreement.
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Appendix X
Applicable Branches or Subsidiaries of Bank

1. Wells Fargo Bank, N.A., UK Branch

2. Wells Fargo Bank, N.A., Canadian Branch

3. Wells Fargo Bank, National Association, Shanghai Branch

4. Wells Fargo Bank, National Association, Hong Kong Branch
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Exhibit 2
Master Agreement for Treasury Management Services
(Attached)

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Treasury Management Pro Forma
CITY OF PALO ALTO Pricing as of April 2024

ANALYSIS SUMMARY
Average Positive Collected Balance $ 550,000.00
Reserve Requirement @ 0.00% $ 0.00
Investable Balance Available for Services $ 550,000.00

Monthly Analyzed Charges $ 2,516.20
Earnings Allowance @ 5.24% $ 2,447.73
Net Monthly Analyzed Charges $ (68.47)
*Monthly Fee Based Charges $ 0.00
Total Monthly Analyzed Charges $ (68.47)
*Charges not offset by balances

Investable balance required to offset $1.00 of analyzed charges $ 225.31

SERVICE DETAILS
WF AFP Service
Code Code Service Description Unit Price Volume Charges

BALANCE & COMPENSATION INFORMATION
IAMTH 000230 RECOUPMENT MONTHLY 0.12750 287 36.59
BALANCE & COMPENSATION INFORMATION Subtotal 36.59

GENERAL ACCOUNT SERVICES
22051 010000 ACCT MAINTENANCE 7.00000 1 7.00
CK021 010100 DEBITS POSTED 0.10000 18 1.80
GENERAL ACCOUNT SERVICES Subtotal 8.80

LOCKBOX SERVICES
36769 05011L LBX PAPER PACKAGE BASE 40.00000 1 40.00
03302 050400 LBX TRANSMISSION BASE 150.00000 1 150.00
03711 050136 LBX WEEKEND SERVICE BASE 70.00000 1 70.00
36709 050140 LBX WHOLESALE BASE 150.00000 1 150.00
03611 050000 LBX REMIT PROCESSED EXPRESS MAIL 1.00000 13 13.00 36731 050530 LBX CORRESPONDENCE OR REJECTS 0.30000 8 2.40 36755 050100 LBX STANDARD CHECK PROCESSED 0.30000 435 130.50 03905 050140 LBX DOCUMENT SCANNED 0.05000 5,823 291.15
36791 050600 LBX 7 YEAR IMAGE ARCHIVE 0.03000 5,823 174.69 36745 050129 LBX VALUE ADDED KEYING 0.02000 13,686 273.72 03303 050410 LBX PKG US MAIL DELIVERY 1.00000 5 5.00
48200 050020 LBX WHOLETAIL BASE 100.00000 1 100.00
48210 050100 LBX WT CHECKS 0.00000 2,049 0.00
48220 050122 LBX WT TOTAL PAYMENTS PROCESSED 0.15000 2,574 386.10 48307 059999 LBX WT STD ITEM PROCESSED NON SCAN 0.30000 36 10.80 48221 050122 LBX WT MULTI PAYMENT 0.10000 513 51.30
48222 050002 LBX WT PARTIAL PAYMENT 0.02000 180 3.60
48257 050899 LBX WT MARK SENSE OR ADDRESS CHANGE 0.06000 2,574 154.44 48501 050401 LBX WT TRANSMISSION PER ITEM 0.01000 2,610 26.10 LOCKBOX SERVICES Subtotal 260.00000 2,032.80
Pro Forma 1 of 3
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WF AFP Service
Code Code Service Description Unit Price Volume Charges

DEPOSITORY SERVICES
CK061 100400 RETURN ITEM - CHARGEBACK 2.00000 8 16.00
CK064 100416 RETURN ITEM SERVICE MTHLY BASE 0.00000 1 0.00 CK069 100401 RETURN ITEM SPECIAL INSTRUCTIONS 0.25000 8 2.00 CK081 100401 RETURN ITEM SPECIAL INST MTHLY BASE 15.00000 1 15.00 08025 100015 MISCELLANEOUS CREDITS POSTED 1.75000 67 117.25 311 100224 WHOLESALE LOCKBOX - DEPOSITED CHECK 0.05000 2,683 134.15 DEPOSITORY SERVICES Subtotal 284.40

PAPER DISBURSEMENT SERVICES
22225 150240 CHECK CASHING THRESHOLD MO BASE 0.00000 1 0.00 22245 150240 CHECKS PAY TO INDIV BLOCK MO BASE 0.00000 1 0.00 22235 150240 OTC DEBIT BLOCK MONTHLY BASE 0.00000 1 0.00 MD091 150240 PYMT AUTH MAX CHECK MTHLY BASE 10.00000 1 10.00 PAPER DISBURSEMENT SERVICES Subtotal 10.00

GENERAL ACH SERVICES
CK018 250201 ELECTRONIC CREDITS POSTED 0.10000 48 4.80
ES349 250220 ACH RECEIVED ADDENDA 0.00000 30 0.00
ES344 250202 ACH RECEIVED ITEM 0.30000 31 9.30
34333 251050 ACH FRAUD FILTER REVIEW MO BASE 5.00000 1 5.00 GENERAL ACH SERVICES Subtotal 19.10

WIRE & OTHER FUNDS TRANSFER SERVICE
ES139 350100 WIRE OUT DOMESTIC VANTAGE/API 3.00000 12 36.00 WIRE & OTHER FUNDS TRANSFER SERVICE Subtotal 36.00
WF AFP Service
Code Code Service Description Unit Price Volume Charges

INFORMATION SERVICES
34123 40022Z ALERTS SERVICE - EMAIL 0.75000 36 27.00
34120 400055 INTRADAY BASE PER ACCT PER REPORT 20.00000 1 20.00 34121 400275 INTRADAY REPORTING ITEMS RPTD 0.07500 134 10.05 34100 400052 PREV DAY BASE PER ACCT PER REPORT 20.00000 1 20.00 34115 400425 PREV DAY REPORTING ITEMS LOADED 0.07500 144 10.80 34216 400832 WIRE TEMPLATE ONLINE 0.33000 2 0.66
INFORMATION SERVICES Subtotal 88.51

Pro Forma 2 of 3
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Disclosures
We created this proposal for you based on our understanding of your requirements and the services in which you expressed interest. This proposal confirms the deposit and treasury management services and the pricing we plan to provide you based on certain assumptions including projected volumes and other relevant information you provided.

This document is confidential. Please do not share it without first obtaining our written permission. The services and pricing contained in this proposal are valid for 90 days. The pricing is subject to change if the actual volume or scope of services differs from the assumptions upon which we based the pricing.

Please let us know if you believe this proposal does not accurately represent the prices or services we discussed with you. If you have questions about the services in this proposal, please contact your Treasury Management Sales Consultant or visit:
www.wellsfargo.com/accountanalysis for additional information about the services.

Regarding your services

Alerts Service
Charges are assessed against the volume of Alerts per user, per company, per month basis. Users are only charged for the first 80 events/alerts per month, per delivery mechanism (email or text). There is no per company cap for billing.

Wire Book Transfer
A Vantage/API Wire book transfer is between two accounts initiated via Vantage/API Wires Book Transfer workflow. A Payment Manager Book transfer is charged when the debit and credit accounts are setup in a single Vantage Company ID and entitled to Book Transfer.

Services with No Volumes
Services listed with zero volume are not included in the estimated monthly analysis fee but are included in the event the service is used in the future.

This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply email and delete this message.Thank you for your cooperation.

Pro Forma 3 of 3
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 17, 2024
Report #:2404-2838
TITLE
Authorization for the City Manager or Designee to Negotiate and Execute a Line of Credit totaling $31 Million to Address Regional Wastewater Treatment Fund Cashflow as Recommended by the Finance Committee; CEQA Status – Not a Project

RECOMMENDATION
The Finance Committee and staff recommend that the City Council:

1. Direct staff to pursue a line of credit totaling $31 million to restore a positive cash balance in the Regional Wastewater Treatment Fund, and

2. Authorize the City Manager or their designee to negotiate and execute all agreements, certificates, instruments, and documents necessary to obtain the line of credit.

EXECUTIVE SUMMARY
On May 21, 20241, the Finance Committee reviewed the Regional Wastewater Treatment Fund current and forecasted negative cashflow balances and to address the fund’s negative cash balance, recommends that the City Council authorize staff to negotiate and execute a line of credit (LOC) totaling $31 million.

The capital improvement program at the City’s Regional Water Quality Control Plant (RWQCP) is entering its peak construction period. Although the City obtained $212 million in low interest loans for its projects from the state’s Clean Water Revolving Fund (SRF), the Regional Wastewater Treatment (WWT) Fund is experiencing short-term negative cash balances. Given the magnitude of the fund’s capital costs and timing of reimbursement requests, the WWT Fund is not able to cover the shortage.
1 Finance Committee, May 21, 2024, Item #2:
https://portal.laserfiche.com/Portal/DocView.aspx?id=72119&repo=r-704298fc&searchid=9cbe174e-8835-478a- 90c5-0e7f4b5cc70b
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Pursuing a $31 million LOC will restore a positive cash balance in the WWT Fund. During the term of the LOC, the WWT Fund will pay for issuance costs and interest, recovered through periodic billing to the six partner agencies, including the City’s Wastewater Collection Fund.

Regarding the City’s Debt Policy2, the Enterprise Funds have a debt service limit of 15% of operating expense. Issuance of a $31 million LOC would increase the fund’s debt service limit appropriately 0.6 to 1.8 percentage points between FY 2025 and 2027. The estimated debt limit for FY 2025 is 7.6%. The City Council approved an exception to the debt limit on December 5, 20223 upon approving the budget amendment to fund the Secondary Treatment Upgrade (STU) project using the 2022 SRF Loan. In FY 2028, based on estimated interest cost and forecast budget, the WWT Fund is estimated to exceed the 15% debt limit due to repayment of the 2022 SRF Loan.

BACKGROUND
On May 21, 2024, the Finance Committee voted unanimously to recommend that the City Council authorize staff to negotiate and execute a $31 million LOC. The Finance Committee’s motion is outlined below:

1. Direct staff to pursue negotiating a line of credit, totaling $31 million, and

2. Authorize the City Manager or designee to negotiate and execute the line of credit MOTION PASSED, 3-0
This report to the City Council summarizes the WWT Fund cashflow shortfall and details of the LOC. For detailed background and analysis, please refer to staff’s report to the Finance Committee1 that outlines the RWQCP operating and capital budgets; the primary drivers for the WWT Fund’s negative cash balance position; interim borrowing options, including advantages and challenges associated with each option; and future RWQCP CIP projects.

ANALYSIS
As of March 31, 2024, the WWT Fund is currently experiencing a cash shortfall in the amount of $8.2 million and, based on cumulative forecasted cashflows reaches a peak shortfall of $31 million (rounded) in October 2024. As SRF loan proceeds flow to the City on a reimbursement basis, this cumulative shortfall declines through November 2025 and is positive for several months. Cash shortfalls are expected to recur thereafter through October 2028. Thereafter, the 2 City Debt Policy, dated April 11, 2017: https://www.cityofpaloalto.org/files/assets/public/v/1/administrative- services/adopted-debt-policy-2017-04-11.pdf
3 City Council, December 5, 2022, CMR ID 14710: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/2022/id.-14710-secondary-treatment-upgrades-approval-of- contract-design-contract-amendment-and-partner-agreements.pdf Item 19
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WWT Fund cash balance is positive. Chart 1 displays the WWT Fund’s current cash balance and forecast through September 2028.

Chart 1: Wastewater Treatment Fund Cumulative Cash Balance (in millions) July 2024: PST Complete
March 2025: Advanced Water Purification System begins
July 2026: Outfall Pipeline begins
April 2028: STU complete
October 2028: 2022 SRF debt service begins; assumes bond proceeds for Headworks Project Based on these estimates, it is useful to note a couple features of these expected cash shortfalls. First, the amount of borrowing needed fluctuates over time. It reaches a peak of $30.9 million at the end of the first quarter of FY 2025 (September 30, 2024), decreases thereafter, and peaks again to $28.1 million in September 2028. Second, there are months without cash shortfalls and it would be advantageous to have no debt outstanding in those months. The draw and repayment flexibility (or lack thereof) offered by an LOC or bond anticipation note (“BAN”) were considered in the context of these fluctuating short-term borrowing needs.

State SRF reimbursement delays are not unique to Palo Alto. In coordination meetings, State staff shared that many agencies struggle with the delays; the issue was also an audit finding4 for the SRF program. Other local agencies including Silicon Valley Clean Water in Redwood City, San Jose, and San Mateo have pursued and obtained interim borrowing financing to manage SRF reimbursement delays.

Line of Credit (LOC)
A line of credit is a flexible loan, for a defined amount of money, from a financial institution that is accessed to manage cash flow or other short-term financing needs. Unlike a bond issuance, 4 The CA CWSRF: Review of the Loan Award and Disbursement Processes, July 2022; PDF pp. 27, 35-6 https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/docs/CWSRF-program-review.pdf Item 19
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the line of credit has terms directly negotiated with the bank and has more flexibility with use of the monies. Under this option, the City would enter into a line of credit with a commercial bank for five years, not to exceed $31 million. Over that five-year period, the City can draw down funds from the line of credit on an as-needed basis. When SRF reimbursement proceeds are received, the line of credit may be immediately repaid and the full amount, or portion, would be reconstituted. Flexibility is a key attribute of a line of credit; the City may borrow, repay, and re-borrow on a regular frequency, hence the revolving nature of this financing strategy. The LOC also provides flexibility on the use of funds amongst WWT projects during the term, which is relevant as WWT has multiple upcoming projects.

With the assistance of the City’s municipal finance advisor, PFM, a request for proposal would be issued and proposals would be evaluated based on proposed terms and conditions. Issuance costs are approximately $0.2 million and include the request for proposals, evaluation of proposers, outside counsel legal review, and executing the agreement. A line of credit has both a “utilized” (also known as a Secured Overnight Financing Rate, or SOFR) and an “unutilized” fee. The utilized fee is applied against the amount drawn down from the line of credit. As of the writing of this report, the utilized fee ranges between 3.0 to 5.1% and is applied only to the amount drawn from the line of credit. The rate will reset monthly and under current market conditions, short-term rates are relatively high. In 2024, it is expected that the Federal Open Markets Committee (FOMC) may decrease the federal rate by 0.5%, which would decrease rates on a line of credit. The unutilized fee is applied against the portion of the line of credit that is not drawn or utilized. It is essentially a “capacity” fee that is charged by commercial banks that allows borrowers immediate access to liquidity with one to two days’ notice. As of the writing of this report, the unutilized fee is estimated to be 0.35%.

FISCAL/RESOURCE IMPACT
A $31 million LOC’s expected expenses for the WWT Fund and partners is shown in Table 1 below. This is based on maintaining a minimum guideline of $7 million in cash reserves in the WWT Fund.

Table 1: Line of Credit Expected Expenses
Fiscal Year
Line of Credit
(SOFR Current)
Line of Credit
(SOFR 5-Year Avg.)
2025 $0.7M $0.4M
2026 $0.5M $0.3M
2027 $0.4M $0.3M
2028 $0.9M $0.5M
2029 $0.5M $0.3M
Total $3.0M $1.8M
The LOC is expected to be issued late summer 2024. Over the 5-year duration of the LOC, the total cost is approximately $0.7 to $1.0 million in the Wastewater Collection Fund. The remaining cost will be covered by contributions from the partners.

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STAKEHOLDER ENGAGEMENT
RWQCP meets regularly with partner agency staff to discuss CIP developments and financing scenarios. Public Works staff began communicating the cashflow issue with partners in 2021 as STU Project details came into focus. The most recent partner meetings with partner agencies on cashflow were on March 26, 2024 and May 21, 2024. An interdepartmental team, including Administrative Services, Public Works, Utilities, City Attorney’s Office, and City Manager’s office staff meets monthly to review and discuss the RWQCP CIP, including the cashflow issue.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because capital project financing activities are a government funding mechanism or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: June 17, 2024
Report #:2405-3108
TITLE
Resolution to Vacate Portions of Three Public Service Easements at 1700 Embarcadero Road

RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution (Attachment A: Resolution to Summarily Vacate a Public Service Easement for 1700 Embarcadero Road) ordering the summary vacation of three public service easements in part or whole for utility and incidental purposes located on the commercial property at 1700 Embarcadero Road in Palo Alto, CA.

BACKGROUND
The Grant of Easements documented in the Santa Clara County Official Records are as follows:

1. Book 8517, page 596, dedicated and accepted by the City on April 30, 1969;

2. Book 8535, page 632, accepted by the City on May 15, 1969; and

3. Book 8047, page 634, accepted by the City on March 6, 1968.

These easements are for public utility purposes and affect the property located at 1700 Embarcadero Road. The developer has requested that the entirety of the easements described in Book 8517, page 596 and Book 8535, page 632 and a portion of the easement described in Book 8047, page 634 on the property to be vacated for the development of a new automotive dealership (“Preexisting Easements”).1 The portion of the Preexisting Easements to be vacated previously served a transformer that is no longer in place. The City has accepted a new grant of easement, attached as Attachment B: Grant of Public Service Easement at 1700 Embarcadero Road (“Superseding Easement”), which will be used to serve a newly installed transformer. The Superseding Easement was sent for recording on June 4, 2024. The City’s Utilities department has reviewed the vacation request and has determined that the portion of the easements to be vacated will be superseded by relocation (Attachment B: Grant of Public Service Easement at 1700 Embarcadero Road). Therefore, once the Superseding Easement is recorded, the 1 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Projects/1700- 1730-Embarcadero-Road
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superseded portions of the Preexisting Easements may be vacated in accordance with the summary proceeding authorized in Section 8333 of the California Streets and Highways Code.

FISCAL/RESOURCE IMPACT
The Summary Easement Vacation Processing fee of $1,980 as set forth in the FY 2024 Municipal Fee Schedule has been paid by the developer.

ENVIRONMENTAL REVIEW
Council action to relocate this public service easement is within the scope of the Mitigated Negative Declaration prepared for the 1700 & 1730 Embarcadero Road Auto Dealership Project and adopted by the Council on June 24, 2019 (#19PLN-00291).

ATTACHMENTS
Attachment A: Resolution to Summarily Vacate a Public Service Easement for 1700 Embarcadero Road
Attachment B: Grant of Public Service Easement at 1700 Embarcadero Road APPROVED BY:

Lauren Lai, Administrative Services Director
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Recorded at no charge in accordance with
Streets & Highways Code Section 8336 at
the request of and when recorded return to:

City of Palo Alto
Real Estate Division
250 Hamilton Avenue
Palo Alto, CA 94301

SPACE ABOVE LINE FOR RECORDER’S USE

APN: 008-03-084
Address: 1700 Embarcadero Road,
Palo Alto, CA 94303

SUMMARY VACATION
RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO

SUMMARILY VACATING A PORTION OF A PUBLIC SERVICE EASEMENT AT 1700 EMBARCADERO ROAD, PALO ALTO, CA 94303

WHEREAS, Section 8333 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases:
(a) the
easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation, (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date , (c) the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and

WHEREAS, the City of Palo Alto accepted and recorded a Grant of Easement on the property located at 1700 Embarcadero Road, Palo Alto, CA 94303, for public utility purposes, dated April 30, 1969, in Book 8517 of Official Records of Santa Clara County, page 596; and

WHEREAS, the City of Palo Alto accepted and recorded a Grant of Easement on the property located at 1700 Embarcadero Road, Palo Al to, CA 94303, for public utility purposes, dated May 15, 1969, in Book 8535 of Official Records of Santa Clara County Records, page 632; and

WHEREAS, the City of Palo Alto accepted and recorded a Grant of Easement on the property located at 1700 Embarcadero Road, Palo Alto, CA 94303, for public utility purposes, dated March 6, 1968, in Book 8047 of Official Records of Santa Clara County, page 634; and

WHEREAS, the City of Palo Alto accepted and, on June 4, 2024, sent for recording a Grant of Easement on the property located at 1700 Embarcadero Road, Palo Alto, CA 94303, for public utility purposes, (“Superseding Easement”); and

Item 20
Attachment A -
Resolution Vacating a
Portion of Easement at
1700 Embarcadero Rd

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WHEREAS, the City of Palo Alto Utilities Department has evaluated and determined that upon the recording of the Superseding Easement , a portion of the preexisting public utilities easements located on the property at1700 Embarcadero, Palo Alto, CA 94303 will be excess and may be superseded by relocation; and

WHEREAS, the City Council of the City of Palo Alto intends to summarily vacate the portion of public service easements as more particularly described in Exhibit “A” attached to this resolution and depicted on the plat map attached as Exhibit “B” to this resolution upon the recording of the Superseding Easement; and

NOW, THEREFORE, the City Council does hereby RESOLVE as follows:

SECTION 1 . This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8333 et. seq.

1. Upon recording of the Superseding Easement, the portions of the public service easements described herein on Exhibit “A” and depicted on the plat map attached as Exhibit “B” will be excess; and

2. Will be superseded by relocation.

SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the portion of public service easement s as shown on the said Exhibits “A” and “B” shall be summarily vacated upon the recording of the Superseding Easement.

SECTION 3. The City C lerk, acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk -Recorder’s Office a certified copy of this Resolution, including the Map at a time after the Superseding Easement has been recorded.

SECTION 4 . The portion of public service easement for utilities and incidental purposes described in Exhibit “A” and depicted in the plat map attached as Exhibit “B” will no longer constitute a public service easement from and after the date of recordation of the documents identified in Section 3 of this Resolution.

Item 20
Attachment A -
Resolution Vacating a
Portion of Easement at
1700 Embarcadero Rd

Item 20: Staff Report
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SECTION 5. Council action on this item is not a project as defined by the California Environment Quality Act because summary va cation of a public utilities easement is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Deputy City Attorney City Manager

____________________________
Director of Administrative Services

Item 20
Attachment A -
Resolution Vacating a
Portion of Easement at
1700 Embarcadero Rd

Item 20: Staff Report
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1 Recorded at no charge in accordance
with Government Code Section 6103
at the request of, and when
recorded return to:

City of Palo Alto
Real Estate Division
250 Hamilton Avenue
Palo Alto, CA 94301

“DOCUMENTARY TRANSFER TAX
$NONE (Exempt – Section 11922), CA
Rev. & Tax Code

SPACE ABOVE THIS LINE

FOR RECORDER'S USE ONLY

A.P. No.: 008-003-084
Property Address: 1700 Embarcadero
Road, Palo Alto, CA 94303

GRANT OF EASEMENT

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,

SC Palo Alto RE, LLC, a California Limited Liability Company, “GRANTOR.”

GRANTOR, as owner of that certain real property described in Exhibit A, does hereby GRANT to CITY OF PALO ALTO, a chartered municipal corporation, “GRANTEE,” an easement and right of way to

construct, maintain, repair, replace and
upgrade public utilities and related improvements

with the right of ingress and egress, all in perpetuity, in, over, under, across, along, and upon that certain portion of GRANTOR’s property in the City of Palo Alto, County of Santa Clara, State of California, more particularly described in Exhibit A and shown on the map in Exhibit B attached hereto and by this reference incorporated herein, whenever GRANTEE desires for the purposes set forth herein.

The rights granted herein (i) are for the benefit of GRANTEE, its officers, agents, employees, or any contractor, its agents or employees, engaged by GRANTEE, whenever necessary for the purposes above set forth; (ii) shall run with the land; and (iii) shall bind GRANTOR and GRANTOR’s successors and assigns.

GRANTOR shall not plant any trees or bushes, or erect, construct or install any fence, wall, Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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2 irrigation or any other type of permanent structure, improvement or private utilities, within, over, across or upon said easement and right-of-way without first obtaining written permission from GRANTEE, which shall not be unreasonably withheld. GRANTOR shall keep the easement area clear from any obstacles that will make the area inaccessible.

Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

Item 20: Staff Report
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7 Packet Pg. 365 of 946

3 IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed.

Grantor:

SC Palo Alto RE, LLC
a California Limited Liability Company

By: _____________________________________

Name: ___________________________________

Title: ____________________________________

Dated: ___________________________________

Grantee:

City of Palo Alto,
a chartered municipal corporation

By: _____________________________________

Name: ___________________________________

Title: ____________________________________

Dated: ___________________________________
Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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4 CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)

STATE OF CALIFORNIA )

COUNTY OF SANTA CLARA )

On ________________, before me, ___________________, a notary public in and for said County, personally appeared _______________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _______________________________

Name: ________________________________

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

Item 20: Staff Report
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5 This is to certify that the interest in real property conveyed by the within deed or grant to the City of Palo Alto, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the Council of the City of Palo Alto, pursuant to authority conferred by resolution of the said Council adopted on March 15, 1971, and the City of Palo Alto consents to recordation thereof by its duly authorized officer.

Dated: _______________________ By: ________________________ City Manager or Designee

APPROVALS
Approved as to Form Approved as to Content

By: __________________________ By: ________________________ City Attorney or Designee Utilities

CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)

STATE OF CALIFORNIA )

COUNTY OF SANTA CLARA )

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _______________________________

Name: ________________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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Exhibit B
Item 20
Attachment B - Grant of a
Public Service Easement
at 1700 Embarcadero
Road

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 17, 2024
Report #:2405-3110
TITLE
Approval of an Extension to Building Permit 18000-00536 for 429 University Ave; CEQA status – Mitigated Negative Declaration (ENV20718).

RECOMMENDATION
Staff recommends the City Council:

1. Approve an extension to building permit 18000-00536 for a term of three months, with additional three-month extensions not to exceed a total of 18 months to January 20, 2026 on the condition that the property is maintained in a manner consistent with City of Palo Alto Municipal Code and window coverings, if applied, are maintained free from damage or discoloration; and,

2. Authorize staff to take any administrative steps to effectuate this extension.

BACKGROUND AND ANALYSIS
Through the planning application process, Bellomo Architects on behalf of Kipling Post LP, was approved to demolish the two, one-story commercial structures on two existing parcels located at 425 and 429 University Ave in March 2017. In its place would be the construction of a new four-story mixed-use residential and commercial building.

In March 2019, the City issued two demolition permits (18000-00537 and 18000-00539) for the existing structures. The demolition was completed and finalized by the City in July 2019. In the same month, a new permit (18000-00526) was issued to commence construction of the new building, which includes two levels of below grade parking (18,124 sq ft), commercial spaces (18,305 sq ft), and three residential units (6,740 sq ft).

Since the permit was issued in July 2019, three 180-day extensions were authorized in September 2022, May 2023, and January 2024 by the Chief Building Official, in accordance with Palo Alto Municipal Code Section 16.04.130. Construction progress continued and between 2019 to 2023, 141 building inspections took place at this site.

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Item 21 Staff Report

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In May 2023, the property owner requested that the permit be transferred to an owner-builder permit and notified the City of a dispute between the property owner and the contractor firm.

As pending litigation between the two parties continued, the property owner requested an additional extension in January 2024. At this time, construction at this site has been halted, and the owner has requested an additional permit extension. The owner has exhausted the maximum number of administrative extensions, and the Municipal Code requires that any further extensions be approved by the City Council.

Due to the unknown timeline for resolution between the property owner and construction firm, staff recommends that Council approve a three-month extension, with up to five additional three-month extensions for a total not to exceed 18-months. The Chief Building Official will execute the extension under the condition that the property is operated in compliance with City code, including signage and sidewalk obstructions. The extension would allow the property owner additional time to resolve the construction dispute and reduce the administrative resources required to maintain the building permits.

The City has received complaints about the building and in particular the presence of caution tape and cones surrounding the street frontages, the deterioration of the butcher block paper on the windows and the lack of follow through on replanting street trees on Kipling Street as required by the project approval.

Staff has since met with the owner who has now planted the street trees on Kipling Street in coordination with the City’s public works department and urban forestry staff. The owner has stated that the existing butcher block paper will be replaced with a similar window covering.

Staff has and will continue to engage the owner on the possibility of using the vacant storefront to display artwork through the City’s Cubberley Artist Studio Program, but due to the pending litigation, this result may not be realized. Lastly, the owner has stated the caution tape and cones surrounding the building will be removed in June 2024. The owner asserts a request from her insurance broker seeking to retain the caution tape on the inside of the building as a deterrent to vandalism. Staff has communicated to the owner that the caution tape either inside or outside represents a sign pursuant to the City’s sign code and must be removed to avoid escalating, daily penalties.

If the caution tape and cones are not removed prior to permit expiration on June 20, 2024, the building permit will not be extended and will lapse. To reactivate the permit, a new building permit application will be required.

POLICY IMPLICATIONS
Granting the building permit extension keeps the permit active to enable additional work and inspections to achieve project completion. If the permit is not extended, the owner would need to apply for a new building permit to complete all remaining work and any reconstruction that may be required. The new building permit package will have to comply with the California Item 21
Item 21 Staff Report

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Building Standards Code as adopted by the Palo Alto Municipal Code at the time of the new permit application submission.

FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with extension of the building permit. Any additional assessed fees required will be determined by the Chief Building Official or designee.

STAKEHOLDER ENGAGEMENT
Planning and Development Services staff have been engaged with the applicant to assist with construction progress at this location.

ENVIRONMENTAL REVIEW
The project at 429 University has been reviewed under CEQA and the City approved a mitigated negative declaration in March 2017 (ENV20718).

APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 21
Item 21 Staff Report

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 17, 2024
Report #:2405-3039
TITLE
SECOND READING: Adoption of an Ordinance extending the Term of Ordinance No. 5517 by an Additional 12 Months from June 16, 2024 to June 30, 2025. Ordinance 5517 Amends Title 18 (Zoning) of the Palo Alto Municipal Code to Update Definitions, Broaden Permitted Uses and Provide Limits on Certain Uses through Updates to the Conditional Use Permit Thresholds.

Environmental Review: CEQA Exemption 15061(b)(3) (FIRST READING: June 3, 2024 PASSED 7-0)

BACKGROUND
This was previously heard by the City Council on June 3, 2024 for a first reading and was approved 7-0. No changes were made to the ordinance; it is now before the Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance Extending Ord 5517 Amending PAMC Ch 18.04, 18.16, 18.18, 18.30 Attachment B: Ordinance #5517
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 22
Item 22 Staff Report

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NOT YET ADOPTED
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Temporarily Extending Ordinance 5517, Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor combining districts
The Council of the City of Palo Alto does ORDAIN as follows:

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

A. On April 5, 2021 the City Council adopted Ordinance 5517 to temporarily relax certain zoning regulations in the City’s commercial zoning districts to address some of the economic challenges created by the COVID-19 pandemic and to spur economic activity.

B. The City Council directed the Planning and Transportation Commission (PTC) to review certain elements of the temporary ordinance and provide a recommendation to the City Council.

C. On March 30, 2022 the PTC recommended that the term of Ordinance 5517 be extended to allow additional time for consideration of whether the temporary relaxation of zoning regulations should remain indefinitely, and whether such regulations should be otherwise amended.

D. On May 16, 2022, the City Council adopted Ordinance 5549, extending the term of Ordinance 5517 to expire on December 16, 2022.

E. On August 31, 2022, the PTC was unable to recommend a replacement ordinance and recommended instead that the term of Ordinance 5517 be further extended.

F. On December 12, 2022, the City Council adopted Ordinance 5573, extending the term of Ordinance 5517 to expire on June 16, 2024.

G. Between Fall 2023 and Spring 2024, the PTC held seven study sessions and an ad hoc committee of the PTC met on four occasions to discuss a draft Retail Study Report that will inform permanent changes to the City’s zoning code, modifying or replacing the provisions of Ordinance 5517.

H. Because the PTC and City Council have yet to receive the final Retail Study Report and provide direction for a replacement ordinance, it is necessary to further extend Ordinance 5517.

Item 22
Attachment A - Ordinance
Extending Ord 5517
Amending PAMC Ch

18.04, 18.16, 18.18, 18.30

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NOT YET ADOPTED
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SECTION 2.The effective date of Ordinance 5517 of the Palo Alto City Council, incorporated herein by reference, is hereby extended so that the Ordinance shall expire upon the earlier of June 30, 2025 or adoption of replacement legislation by the City Council. Upon expiration of Ordinance 5517, the City Clerk shall direct the City’s codifier to update the Palo Alto Municipal Code as appropriate.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4.The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be seen with certainty that temporary relaxation of minor land use regulations will not have a significant, adverse impact on the environment.

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

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
Item 22
Attachment A - Ordinance
Extending Ord 5517
Amending PAMC Ch

18.04, 18.16, 18.18, 18.30

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Ordinance No. 5517

Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor Combining Districts

The Council of the City of Palo Alto does ORDAIN as follows:

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

A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (“COVID-19”).

B. As a result of the COVID-19 pandemic and the public health response, restaurant, retail, tourism, and hospitality business has significantly declined and the nation is experiencing a recession.

C. The City Council desires to relax certain zoning regulations in the City’s commercial zoning districts to address some of the economic challenges created by the COVID-19 pandemic and to spur economic activity.

D. The public health, safety, or welfare require that such changes to the City’s zoning regulations be enacted for a temporary period and as expediently as possible, without review by the Planning and Transportation Commission pursuant to Palo Alto Municipal Code section 18.80.090.

SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:

18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings ascribed in this section.
[. . .]
(45) “Drive-in/drive-through service” means a feature or characteristic of a use involving sales of products or provision of services to occupants in vehicles, including drive-in or drive-up windows and drive- through services such as mechanical automobile washing, pharmacy windows, coffee stands, automatic teller machines, etc. [. . .]
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#5517

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(47) “Eating and drinking service” means a use providing preparation and retail sale of food and beverages with a full menu and providing indoor seating area. Eating and drinking service include presence of a full commercial kitchen and commercial dishwasher. including restaurants, fountains, cafes, coffee shops, sandwich shops, ice cream parlors, taverns, cocktail lounges and similar uses. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues from an ‘eating and drinking service’ must be derived from the sale of food. Related definitions are provided in subsections (45) (Drive-in/drive-through service), (125)(B) (Intensive retail service) and (136) (Take-out service). [. . .]
(95) “Medical office” means a use providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors, dentists, medical and dental laboratories, and similar practitioners of medical and healing arts for humans, licensed for such practice by the state of California. Incidental medical and/or dental research within the office is considered part of the office use, where it supports the on-site patient services. Medical office use does not include the storage or use of hazardous materials in excess of the permit quantities as defined in Title 15 of the Municipal Code. Medical gas storage or use shall be allowed up to 1,008 cubic feet per gas type and flammable liquids storage and use shall be allowed up to 20 gallons total (including waste).
(95.1) (A) “Medical research” means a use related to medical and/or dental research, testing and analysis, including but not limited to trial and clinical research. Biomedical and pharmaceutical research and development facilities are not included in this definition. Medical Research does not include the storage or use of quantities of hazardous materials above the exempt quantities listed in Title 15 of the Municipal Code nor any toxic gas regulated by Title

15. Additionally, Medical Research may include storage and use of etiological (biological) agents up to and including Risk Group 2 or Bio Safety Level 2 (Center for Disease Control). (95.2) (B) “Medical support retail” means a retail use providing sales, rental, service, or repair of medical products and services to consumers or businesses, and whose location near hospitals or medical offices facilitates the provision of medical care or medical research.

Examples of medical retail uses typically include, but are not limited to, pharmacies, sale of prosthetics, and sale of eyeglasses or other eye care products. (95.3) (C) “Medical support service” means a use providing administrative support functions for healthcare providers or facilities, intended to support the operations of hospitals or of medical and dental office uses, and whose location near those medical facilities enhances the interaction between medical providers and/or facilitates the provision of medical care or medical research. Examples of medical support service uses typically include, but are not limited to, administration and billing services, public relations, training, and fundraising.

Hospitals and ambulance services are not included in this definition. [. . .]
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#5517

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(114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including:
(A) Beauty shops, nail salons, day spas, and barbershops; (B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations where all cleaning or servicing for the particular station is done elsewhere; and laundry and cleaning stations where the cleaning or servicing for the particular station is done on site, utilizing equipment meeting any applicable Bay Area Air Quality Management District requirements, so long as no cleaning for any other station is done on the same site, provided that the amount of hazardous materials stored does not at any time exceed the threshold which would require a permit under Title 17 (Hazardous Materials Storage) of this code; (C) Repair and fitting of clothes, shoes, and personal accessories; (D) Quick printing and copying services where printing or copying for the particular service is done on site, so long as no quick printing or copying for any off-site printing or copying service is done on the same site;
(E) Internet and other consumer electronics services; (F) Film, data and video processing shops, including shops where processing for the particular shop is done on site, so long as no processing for any other shop is done on the same site;
(G) Art, dance or music studios intended for an individual or small group of persons in a class (see “commercial recreation” for other activities); and (H) Fitness and exercise studios, or similar uses, in a space having of 1,800 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet other activities).
(I) Learning centers intended for individual or small group settings, including tutoring, standardized test preparation, language classes, after-school programs, cooking classes, and similar uses.
[. . .]
(125) “Retail service” means a use open to the public during typical business hours and predominantly engaged in providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use.
(A) “Extensive retail service,” as used with respect to parking requirements, means a retail sales use having more than seventy-five percent of the gross floor area used for display, sales, and related storage of bulky commodities, including household furniture and appliances, lumber and building materials, carpeting and floor covering, air conditioning and heating equipment, and similar goods, which uses have demonstrably low parking demand generation per square foot of gross floor area.

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#5517

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(B)  “Intensive retail service” as used with respect to parking requirements, means any retail service use not defined as extensive retail service and including limited food service (i.e. ‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food and/or beverages are ready to consume at the time of sale and any seating area is limited; examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items). [. . .]
(136) “Take-out service” means a characteristic of an eating or drinking service which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B). [. . .]
SECTION 3. Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:

The uses of land allowed by this chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. (a) Commercial Zones and Land Uses
Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1:

TABLE 1

PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use CUP = Conditional Use Permit Required LAND USE CN(4) CC, CC(2) CS (4) Subject to Regulations In:

ACCESSORY AND SUPPORT
USES

Accessory facilities and activities
customarily associated with or
essential to permitted uses, and
operated incidental to the principal
use.

P P P 18.42
Drive-in services or take-out
services associated with permitted
uses(3)
CUP CUP CUP 18.42
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Tire, battery, and automotive service
facilities, when operated incidental to
a permitted retail service or
shopping center having a gross floor
area of more than 30,000 square
feet.

CUP 18.42, 18.40.160
Safe Parking 18.42.160

EDUCATIONAL, RELIGIOUS, AND

ASSEMBLY USES

Business and Trade Schools P P
Churches and Religious Institutions P P P
Private Educational Facilities CUP P P
Private Clubs, Lodges, or Fraternal
Organizations

CUP P P

MANUFACTURING AND

PROCESSING USES

Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP

OFFICE USES
Administrative Office Services P 18.16.050
Medical Offices CUP
(5)
CUP (5) CUP (5) 18.16.050
Professional and General Business
Offices
P P P 18.16.050

PUBLIC/QUASI-PUBLIC USES
Utility Facilities essential to provision
of utility services but excluding
construction or storage yards,
maintenance facilities, or corporation
yards.

CUP CUP CUP

RECREATION USES
Commercial Recreation CUP
(5)
CUP (5) CUP (5) 18.40.160
Outdoor Recreation Services CUP CUP CUP
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RESIDENTIAL USES
Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c)
Home Occupations P P P
Residential Care Homes P P P

RETAIL USES
Eating and Drinking Services,
excluding drive-in and take-out
services
P P P 18.40.160
Retail Services, excluding liquor
stores
P P P 18.40.160
Liquor stores CUP P P 18.40.160
Shopping Centers P 18.16.060(e), 18.40.160

SERVICE USES
Ambulance Services CUP CUP CUP
Animal Care, excluding boarding
and kennels
P P P
Boarding and Kennels CUP
Automobile Service Stations CUP CUP CUP 18.30(G)
Automotive Services CUP
Convalescent Facilities CUP P P
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes CUP P P
Banks and Financial Services V CUP P(2) P(2)
General Business Services CUP P
Hotels P P 18.16.060(d), 18.40.160
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Mortuaries CUP P P
Neighborhood Business Services P 18.16.060(f)
Personal Services P P (6) P 18.16.060(f), 18.40.160
Reverse Vending Machines P P P

TEMPORARY USES
Farmer's Markets CUP CUP CUP
Temporary Parking Facilities,
provided that such facilities shall
remain no more than five years.

CUP CUP CUP

TRANSPORTATION USES
Parking as a principal use CUP CUP
Transportation Terminals CUP CUP
P = Permitted Use CUP = Conditional Use Permit Required

(1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of Section 18.16.060(b), or (ii) on sites designated as housing inventory sites in the Housing Element of the Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites, all pursuant to the provisions of Section 18.16.060(b) and (c).
(2) Except drive-in services.
(3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not be less than 150 feet from one another.
(4) For properties in the CN and CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit. (5) A conditional use permit is not required for medical office or commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on California Avenue and in the Midtown Shopping District; (B) commercial recreation uses fronting on California Avenue and in the Town and Country Village Shopping Center.
(6) A conditional use permit is required for the following uses when fronting on California Avenue: (A) Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B) Learning centers intended for individual or small group settings. A conditional use permit is required for DocuSign Envelope ID: 2FFD3DF9-38C6-4D8A-8AAD-4B626E119FA7 Item 22
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fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area in Town and Country Village Shopping Center.
[. . .]
SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:

18.16.060 Development Standards
[. . .]
(f) Size of Establishments in the CN District
In the CN district, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 5.  Such uses may be allowed to exceed the maximum establishment size, subject to issuance of a conditional use permit in accord with Section

18.76.010.  The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use.

TABLE 5

MAXIMUM SIZE OF ESTABLISHMENT

Type of Establishment Maximum Size (sq ft)
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
Neighborhood business services 2,500 3,000

[. . .]
(h) Outdoor Sales and Storage
(2) In the CC district and in the CC (2) district, the following regulations shall apply to outdoor sales and storage:
(A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area, (ii) Outdoor eating areas operated incidental to permitted eating and drinking services or intensive retail uses,
(iii) Farmers’ markets that have obtained a conditional use permit, and DocuSign Envelope ID: 2FFD3DF9-38C6-4D8A-8AAD-4B626E119FA7 Item 22
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(iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit.

SECTION 5. Sections 18.18.050 (Land Uses) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:

18.18.050 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are identified in the following table. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well.

Permitted and conditionally permitted land uses for the CD district are shown in Table 1:

Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to
regulations in
Chapter:

ACCESSORY USES
Accessory facilities and activities associated with or
essential to permitted uses, and operated incidental
to the principal use
P P P
Drive-in or Take-out Services associated with
permitted uses (2)

CUP CUP CUP
Tire, battery, and automotive service facilities, when
operated incidental to a permitted retail service or
shopping center having a gross floor area of more
than 30,000 square feet
CUP 18.40.160
Safe Parking 18.42.160

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY
USES

Business and Trade Schools P P
Churches and Religious Institutions P P P
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Private Educational Facilities P P CUP
Private Clubs, Lodges, or Fraternal Organizations P P CUP

MANUFACTURING AND PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP

OFFICE USES
Administrative Office Services P 18.18.060(f)
Medical, Professional, and General Business Offices P P P 18.18.060(f)

PUBLIC/QUASI-PUBLIC FACILITY USES
Utility Facilities essential to provision of utility
services but excluding construction or storage yards,
maintenance facilities, or corporation yards

CUP CUP

RECREATION USES
Commercial Recreation CUP
(3)
CUP
(3)
CUP
(3)

Outdoor Recreation Services CUP CUP CUP

RESIDENTIAL USES
Multiple-Family P (1) P (1) P (1) 18.18.060(b)
Home Occupations P P P
Residential Care Homes P P P

RETAIL USES
Eating and Drinking Services, except drive-in or take-
out services
P P P 18.18.060(g) , 1

8.40.160
Retail Services, excluding liquor stores P P P 18.18.060(g) , 1

8.40.160
Shopping Centers P 18.18.060(g) , 1
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8.40.160
Liquor Stores P P CUP 18.40.160

SERVICE USES
Animal Care, excluding boarding and kennels P P P
Ambulance Services CUP CUP CUP 18.30(G)
Automobile Service Stations CUP CUP CUP
Automobile Services CUP
Convalescent Facilities P P CUP
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes
Financial Services, except drive-up services P P CUP
General Business Services CUP P P
Hotels P P P 18.18.060(d) , 1

8.40.160
Mortuaries P P CUP
Personal Services P (4) P (4) P (4) 18.18.060(g) , 1

8.40.160
Reverse Vending Machines P P P

TRANSPORTATION USES
Parking as a principal use CUP CUP
Passenger Transportation Terminals CUP
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TEMPORARY USES
Indoor Farmers’ Markets CUP CUP CUP
Temporary Parking Facilities, provided that such
facilities shall remain no more than five years

CUP CUP CUP
P Permitted Use CUP Conditional Use Permit Required (1) Residential is only permitted as part of a mixed use development, pursuant t o the provisions of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c). (2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet and each use shall not be less than 150 ft from one another.
(3) A conditional use permit is not required for commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting on University Avenue.
(4) A conditional use permit is required for the following uses when fronting on University Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for individual or small group settings.

SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
[. . .]
(g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 4. Such uses may be allowed to exceed the maximum establishment size, subject to the issuance of a conditional use permit in accordance with Chapter 18.76. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use. //
//
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TABLE 4

MAXIMUM SIZE OF ESTABLISHMENT

Type of Establishment Maximum Size (ft 2 )
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000

(h) Outdoor Sales and Storage.

The following regulations shall apply to outdoor sales and storage in the CD district:
(1) CD-C Subdistrict
In the CD-C subdistrict, the following regulations apply:
(A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area, (ii) Outdoor eating areas operated incidental to permitted eating and drinking services or intensive retail uses,
(iii) Farmers' markets which have obtained a conditional use permit, and (iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit.
(C) Exterior storage shall be prohibited, except recycling centers which have obtained a conditional use permit.
(2) CD-S Subdistrict
In the CD-S subdistrict, outdoor sales and display of merchandise, and outdoor eating areas operated incidental to permitted eating and drinking services and intensive retail uses shall be permitted subject to the following regulations:
(A) Outdoor sales and display shall not occupy a total site area exceeding the gross building floor area on the site, except as authorized by a conditional use permit.

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(B) Areas used for outdoor sales and display of motor vehicles, boats, campers, camp trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum design standards applicable to off-street parking facilities with respect to paving, grading, drainage, access to public streets and alleys, safety and protective features, lighting, landscaping, and screening.
(C) Exterior storage shall be prohibited, unless screened by a solid wall or fence of between 5 and 8 feet in height.
(3) CD-N Subdistrict
In the CD-N subdistrict, all permitted office and commercial activities shall be conducted within a building, except for:
(A) Incidental sales and display of plant materials and garden supplies occupying not more than 500 square feet of exterior sales and display area, and (B) Farmers' markets that have obtained conditional use permits. [. . .]
SECTION 7. Section 18.30(A).040 (Permitted Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:

Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the following uses shall be permitted in an R district:
(a) Eating and drinking services, except drive-in and take-out services. (b) Personal services, except the following on California Avenue: beauty shops; nail salons; barbershops; and laundry and cleaning services as defined in Section 18.04.030(114)(B); fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings.
(c) Retail services.
(d) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor.

SECTION 8. Section 18.30(A).050 (Conditional Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:

The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) Financial services, except drive-in services, on a ground floor. (b) All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor.
(c) Formula retail businesses on California Avenue.

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(d) Beauty shops, nail salons, and barbershops, fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings.

SECTION 9. Section 18.30(C).020 (Permitted Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
(a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.160180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for parcels with frontage on University Avenue, where uses defined in Section 18.04.030(114)(B), (G), and (H), and (I) are not permitted; (4) Retail services;
(5) Theaters;
(6) Travel agencies;
(7) Commercial Recreation up to 5,000 square feet in gross floor area, except for parcels with frontage on University Avenue;
(78) All other uses permitted in the underlying district, provided such uses are not on the ground floor.
(b) Elimination or conversion of basement space currently in retail or retail-like use or related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non-ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the gound ground floor use(s), and subject to the approval of the Director.

SECTION 10. Section 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
(a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160:
(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with frontage on University Avenue;
(3) Day care;
(4) Financial services, except drive in services;
(5) General business service;
(6) Learning centers intended for individual or small group settings; DocuSign Envelope ID: 2FFD3DF9-38C6-4D8A-8AAD-4B626E119FA7 Item 22
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(7) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor.
(b) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the findings required by Chapter 18.76 (Permits and Approvals):
(1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district. (2) The proposed use will not be determined to the retail environment or the pedestrian-oriented design objectives of the GF combining district. (c) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which the finding set forth in subsection (b) was made.

SECTION 11. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 13. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be seen.

//
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SECTION 14. This ordinance shall be effective on the thirty-first date after the date of its adoption and shall expire upon the earlier of June 30, 2022 or adoption of replacement legislation by the City Council. Upon expiration of this ordinance, the City Clerk shall direct the City’s codifier to update the Palo Alto Municipal Code as appropriate.

INTRODUCED: March 8, 2021
PASSED: April 12, 2021
AYES: BURT, DUBOIS, FILSETH, KOU, STONE
NOES: CORMACK, TANAKA
ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning & Development
Services
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Certificate Of Completion
Envelope Id: 2FFD3DF938C64D8A8AAD4B626E119FA7
Status: Completed
Subject: Please DocuSign: ORD 5517 Ordinance Amending PAMC Title 18 Ch 18.04 Definitions 18.16 Neighborh...

Source Envelope:

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Danielle Kang
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250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
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Albert Yang
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City of Palo Alto
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Jonathan Lait
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City of Palo Alto
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Ed Shikada
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: June 17, 2024
Report #:2406-3125
TITLE
SECOND READING: Ordinance Amending Chapter 16.14 (California Green Building Standards, California Code of Regulations, Title 24, Part 11) of the Palo Alto Municipal Code to Adopt the 2022 Green Building Standards Code, Along With Local Modifications Related to Electrical Vehicle Charging Infrastructure Requirements and Building Electrification Requirements and an Ordinance Amending Chapter 16.17 (California Energy Code, California Code of Regulations, Title 24, Part 6) of the Palo Alto Municipal Code to Adopt the 2022 California Energy Code, Along with Local Modifications to Increase Energy Efficiency Standards for Buildings, Mandate Electric-Ready Requirements and Incentivize All-Electric New Construction. CEQA Status:

Exempt under CEQA Guidelines Sections 15308 and 15061(b)(3) (FIRST READING: June 3, 2024 PASSED 6-1, Tanaka no and 7-0)

BACKGROUND
This was heard by the City Council on May 13, 2024 for a first reading. An ordinance amending Chapter 16.14 was approved 6-1, Tanaka no and an ordinance amending Chapter 16.17 was approved 7-0. No changes were made to the ordinances; it is now before you for a second reading.

ATTACHMENTS
Attachment A - Ordinance Amending Ch 16.14
Attachment B - Ordinance Amending Ch 16.17
APPROVED BY:

Mahealani Ah Yun, City Clerk
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*NOT YET APPROVED*

ATTACHMENT A
0280100_KB2_20240523_CA

Ordinance No. XXXX
Ordinance of the Council of the City of Palo Alto Amending Chapter 16.14 (California Green Building Standards, California Code of Regulations, Title 24, Part 11) of the Palo Alto Municipal Code to Adopt the 2022 Green Building Standards Code, Along With Local Amendments Thereto, Related to Electrical Vehicle Charging Infrastructure Requirements and Building Electrification Requirements

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings and Declarations.
(a) The City of Palo Alto adopted a Sustainability and Climate Action Plan, or S/CAP, to meet the City's stated goal of "80 x 30": reducing greenhouse gas emissions 80% below 1990 levels by 2030.
(b) The S/CAP outlines goals and key actions in eight areas, one of which is energy and more specifically, energy efficiency and electrification. The goals for the energy area of the S/CAP are to reduce GHG emissions from the direct use of natural gas in Palo Alto’s building sector by at least 60% below 1990 levels (116,400 MT CO2e reduction) and to modernize the electric grid to support increased electric demand to accommodate state‐ of‐the‐art technology.
(c) One key action the City is taking to accomplish those goals is use codes and ordinances ‐ such as the energy reach code, green building ordinance, zoning code, or other mandates ‐ to facilitate electrification in both existing buildings and new construction projects where feasible.
(d) The purpose of this ordinance is to formally adopt California Code of Regulations, Title 24, Part 11, 2022 California Green Building Standards Code, with local amendments in furtherance of the City of Palo Alto’s S/CAP goals.
(e) California Health and Safety Code sections 17958.5 and 17958.7 requires that the City, in order to make changes or modi fications in the requirements contained in the California Green Building Standards on the basis of local conditions, make express finding that such modifications or changes are reasonably necessary because of local climatic, geological or topographical conditions.
(f) The required findings are attached to this ordinance as Exhibit A.

SECTION 2. Chapter 16.14 (California Green Building Standards, California Code of Regulations, Title 24, Part 11) of the Palo Alto Municipal Code is hereby amended by repealing in its entirety existing 16.14 and adopting a new Chapter 16.14 to read as follows:

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CHAPTER 16.14

CALIFORNIA GREEN BUILDING STANDARDS CODE,
CALIFORNIA CODE OF REGULATIONS, TITLE 24, PART 11

Sections
Part 1 – General

16.14.010 2022 California Green Building Standards Code, Title 24, Part 11 adopted and amended.

16.14.020 Cross ‐ References to California Green Building Standards Code.

16.14.030 Local Amendments.

Part 2 – Local Modifications to CHAPTER 1 – ADMINISTRATION

16.14.040 Administration & Enforcement of 2022 California Green Building Standards Code.

16.14.050 Adoption of Chapter 1 Administration.

16.14.060 Section 101.4 Appendices.

Part 3 – Local Modifications to CHAPTER 2 – DEFINITIONS

16.14.070 Section 202 Definitions.

Part 4 – Local Modifications to CHAPTER 3 – GREEN BUILDING

16.14.080 Section 301 – Voluntary Tiers Added.

Part 5 – Local Modifications to CHAPTER 4 – RESIDENTIAL MANDATORY

MEASURES

16.14.090 Section 4.106.5 Full Electrification

16.14.100 Section 4.306 Swimming Pool and Spa Covers.

16.14.110 Reserved
Part 6 – Local Modifications to CHAPTER 7 – INSTALLER AND SPECIAL

INSPECTOR QUALIFICATIONS

16.14.120 Section 702.2 Special Inspection.

Part 7– Local Modifications to APPENDIX A4 – RESIDENTIAL VOLUNTARY

MEASURES

16.14.130 Residential Projects. Appendix A4 Preface: Green Building Measures for Project Type and Scope.

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16.14.140 Section A4.104 Site Preservation.

16.14.150 Section A4.105 Deconstruction and Reuse of Existing Materials.

16.14.160 Section A4.106.8 Electric Vehicle (EV) Charging for New Construction.

16.14.170 Section A4.106.9 Bicycle Parking.

16.14.180 Section A4.106.10 Light Pollution Reduction.

16.14.190 Section A4.203.1 Performance Approach for Newly Constructed Buildings.

16.14.200 Section A4.304.3 Irrigation Metering Device.

16.14.210 Section A4.305 Water Reuse Systems.

16.14.220 A4.305.4 Additions and Alterations.

16.14.230 Section A4.403.1 Frost Protection Foundation Systems.

16.14.240 Section A4.403.2 Reduction in Cement Use.

16.14.250 Section A4.408.1 Enhanced Construction Waste Reduction.

16.14.260 Section A4.504.1 Compliance with formaldehyde limits.

16.14.270 Section A4.504.3 Thermal Insulation.

Part 8 – Local Modifications to CHAPTER 5 – NONRESIDENTIAL MANDATORY

MEASURES

16.14.280 Nonresidential Projects: Chapter 5 Preface Green Building Project Type and Scope.

Requirements for

16.14.290 Section 5.106.1.1 Local Storm Water Pollution Prevention.

16.14.295 Section 5.106.8 Light Pollution Reduction.

16.14.300 Section 5.106 Full Electrification.

16.14.310 Reserved

16.14.320 Reserved

16.14.330 Section 5.304.2 Invasive Species Prohibited.

16.14.340 Section 5.306 Nonresidential Enhanced Water Budget.

16.14.350 Section 5.307 Cooling Tower Water Use.

16.14.360 Section 5.410.4.6 Energy STAR Portfolio Manager.

16.14.370 Section 5.410.4.7 Performance Reviews – Energy.

16.14.380 Section 5.410.4.8 Performance Reviews – Water.

16.14.390 Section 5.506 Indoor Air Quality.

Part 9 – Local Modifications to APPENDIX A5 – NONRESIDENTIAL VOLUNTARY Item 23
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MEASURES

16.14.400 Section A5.106.5.3 Electric Vehicle (EV) Charging for New Construction.

16.14.410 Section A5.203.1 Performance Approach for Newly Constructed Buildings.

16.14.420 Section A5.405.5 Cement and Concrete.

16.14.430 Section A5.408 Construction Waste Reduction, Disposal and Recycling.

Part 1 – General

16.14.010 2022 California Green Building Standards Code, Title 24, Part 11 adopted and amended.

The California Green Building Standards Code, 2022 Edition, Title 24, Part 11 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein.

Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2022. Ordinance No. 5570 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed.

Wherever the phrases “California Green Building Standards Code” or “CALGreen” are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Green Building Standards Code, 2022 Edition, as adopted and amended by this chapter.

One copy of the California Green Building Standards Code, 2022 Edition, has been filed for use and examination of the public in the Office of the Chief Building Official of the City of Palo Alto.

16.14.020
Cross ‐ References to California Green Building Standards Code.

The provisions of this Chapter contain cross‐references to the provisions of the California Green Building Code, 2022 Edition, in order to facilitate reference and comparison to those provisions.

16.14.030 Local Amendments.

The provisions of this Chapter shall constitute local amendments to the cross‐referenced provisions of the California Green Building Standards Code, 2022 Edition, and shall be deemed to replace the cross‐referenced sections of said Code with the respective provisions set forth in this Chapter.

Part 2 – Local Modifications to CHAPTER 1 – ADMINISTRATION

16.14.040 Administration & Enforcement of 2022 California Green Building Standards Code.

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Administration and enforcement of this code shall be governed by Chapter 1, Division II of the 2022 California Building Code as amended by Palo Alto Municipal Code Chapter 16.04.

16.14.050 Adoption of Chapter 1 Administration.

Chapter 1 Administration of the 2022 California Green Building Code is adopted by the City of Palo Alto to supplement, to the extent it does not conflict with, Chapter 1, Division II of the 2022 California Building Code, as amended.

16.14.060 Section 101.4 Appendices.

The following Appendix Chapters of the California Green Building Standards Code, 2022 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein:

A. Appendix A4 ‐ Residential Voluntary Measures (Tier 1 and Tier 2) B. Appendix A5 ‐ Nonresidential Voluntary Measures (Tier 1 and Tier 2)

Part 3 – Local Modifications to CHAPTER 2 – DEFINITIONS

16.14.070 Section 202 Definitions.

Section 202 of Chapter 2 of the California Green Building Standards Code is amended to include the following definitions:

ALL‐ELECTRIC BUILDING / SITE. A building or parcel of land whose sole source of energy is electricity and contains no combustion equipment or plumbing for combustion equipment.

CPAU. City of Palo Alto Utilities Department.

CALGREEN MANDATORY. Mandatory measures are triggered for projec ts outlined in Section 301.1 Scope of this code, as amended.

Projects that only trigger Mandatory measures are not required to fulfill Tier 1 or Tier 2 measures in Appendix A4 and A5.

CALGREEN TIER 1. To achieve Tier 1 status , a project must comply with me asures identified in Appendix A4, Section A4.601.4 for residential projects and Appendix A5, Section A5.601.2 for nonresidential projects.

Projects subject to Tier 1 must fulfill all mandatory measures, all Tier 1 prerequisite measures and a defined number of Tier 1 elective measures.

CALGREEN TIER 2. To achieve Tier 2 status , a project must comply with requirements identified in Appendix A4, Section A4.601.5 for residential projects and Appendix A5, Section A5.601.3 for nonresidential projects.

Projects subject to Tier 2 must fulfill all mandatory measures, all Tier 2 prerequisite Item 23
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measures and a defined number of Tier 2 elective measures.

CALGREEN TIER 1 AND TIER 2 PREREQUISITE MEASURES. Projects subject to Tier 1 or Tier 2 must fulfill all prerequisites as described within Appendix A4, Division A4.6 for residential projects and Appendix A5, Division A5.6 for nonresidential projects.

CALGREEN TIER 1 AND TIER 2 ELECTIVE MEASURES. Projects subject to Tier 1 or Tier 2 must fulfill a defined number of electives as described within Appendix A4, Division A4.6 for residential projects and Appendix A5, Division A5.6 for nonresidential projects.

CALGREEN INSPECTOR is a person certified as a CALGreen Inspector/Plans Examiner through the International Code Council (ICC), demonstrating knowledge and application of Green Building concepts during plan review and inspection. For projects that require a CALGreen Inspector/Plans Examiner verification, the Inspector must be contracted directly with the owner and may not be a contractor or employee of the design or construction firm.

CERTIFIED ENERGY ANALYST is a person registered as a Certified Energy Analyst with the California Association of Building Energy Consultants as of the date of submission of a Certificate of Compliance as required under section 10‐103 of Building Energy Efficiency Standards for residential and nonresidential buildings.

MODEL WATER EFFICIENT LANDSCAPE ORDINANCE. The California Department of Water Resources Model Water Efficient Landscape Ordinance.

SALVAGE. Salvage means the controlled removal of items and material from a building, construction, or demolition site for the purpose of on‐ or off‐site reuse, or storage for later reuse. Examples include air conditioning and heating systems, columns, balustrades, fountains, gazebos, molding, mantels, pavers, planters, quoins, stair treads, trim, wall caps, bath tubs, bricks, cabinetry, carpet, do ors, ceiling fans, lighting fixtures, electrical panel boxes, fencing, fireplaces, flooring materials of wood, marble, stone or tile, furnaces, plate glass, wall mirrors, door knobs, door brackets, door hinges, marble, iron work, metal balconies, structural steel, plumbing fixtures, refrigerators, rock, roofing materials, siding materials, sinks, stairs, stone, stoves, toilets, windows, wood fencing, lumber and plywood.

SUBSTANTIAL REMODEL (or “50‐50‐50” RULE). Any project or projects that affects the removal or replacement of 50% or more of the linear length of the existing exterior walls of the building, and/or 50% or more of the linear length of the existing exterior wall plate height is raised, and/or 50% or more of the existing roof framing area is removed or replaced, over a 3‐year period.

Any permit(s) applied for will trigger a review of a 3‐year history of the project. This review will result in determining if a substantial remodel has occurred.

The Chief Building Official or designee shall make the final determination regarding the application if a conflict occurs.

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SQUARE FOOTAGE. For application of green building requirements, “square footage” refers to all new or altered square footage, including basement areas (7 feet or greater in height), as calculated based on outer boundary of proposed construction area, including exterior walls.

Part 4 – Local Modifications to CHAPTER 3 – GREEN BUILDING

16.14.080 SECTION 301 ‐ Voluntary Tiers Added.

SECTION 301 of Chapter 3 of the California Green Building Standards Code is amended to read:

SECTION 301 GENERAL
301.1 Scope. Buildings shall be designed to include the green building measures specified as mandatory in the application checklists contained in this code and any applicable local amendments. In addition, the City requires the use of Voluntary Tiers, as provided in Appendices A4 and A5, for certain residential and nonresidential new construction, additions, and alterations.
301.1.1 Residential additions and alterations. [HCD] The Mand atory provisions of Chapter 4 shall be applied to additions and/or alterations of existing residential buildings where the addition and/or alteration increases the building's conditioned area, volume, or size. The requirements shall apply only to and/or within the specific area of the addition or alteration.

Tier 1 adopted (Residential). All residential building additions and/or alterations exceeding 1000 square feet must meet CALGreen Mandatory plus the Tier 1 measures, as amended by this Chapter and as applicable to the scope of work.

For Tier 1 projects, the area of alterations will include any construction or renovation to an existing structure other than repair or addition. Alterations include raising the plate height, historic restoration, changes or rearrangements of the structural parts or elements, and changes or rearrangement of bearing walls and full height partitions.

Normal maintenance, reroofing, painting or wall papering, floor finishes, replacement‐in‐kind of mechanical, plumbing and electrical systems, or replacing or adding new kitchen counter and similar furniture, plumbing fixture to the building are excluded for the purposes of establishing scope of Tier 1 projects.

The area of alteration should be limited to the footprint of element(s) being altered.

This does not exclude mandatory CALGreen measures. The sum of the footprint of the elements being altered with respect to Tier 1, shall be calculated using the following methodology:

1. Raising the plate height: The calculation with respect to raising of the plate height will be based on the area of the footprint in which the plate height is being increased. Plate heig ht means the vertical distance measured from the top of the finished floor to the top of the plates.

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2. Historic restoration: The calculation with respect to historic restoration will be based on the area of work covered in the California Historical Building Code (Title 24, Part 8).

3. Structural parts or elements: The calculation with respect to changes or rearrangements of the structural parts or elements will be based on the sum of the individual footprints of each structural change or rearrangement. The footprint shall be calculated based on the proposed design and inclusive of any demolished structural parts or elements.

4. Bearing walls and full height partition: The calculation with respect to changes or rearrangement of walls and full height partitions will be based on the footprint of any demolished wall or full height partition and any new wall or new full height partition.

Exception: Attached and detached Accessory Dwelling Units, ADU conversions of existing structures shall meet the California Green Building Standards Code Mandatory measures only.
301.2 Low‐rise and high‐rise residential buildings. [HCD] The provisions of individual sections of CALGreen may apply to either low‐rise residential buildings, high‐rise residential buildings, or both. Individual sections will be designated by banners to indicate where the section applies specifically to low‐rise only (LR) or high‐rise only (HR). When the section applies to both low‐rise and high‐rise buildings, no banner will be used.

301.2.1 Low‐Rise residential new construction – Tier 2 adopted. All new constructed or substantial remodel projects must meet CALGreen Mandatory plus Tier 2 measures, as amended by this ordinance and as applicable to the scope of work.

301.3 Nonresidential additions and alterations. [BSC‐CG] The provisions of individual sections of Chapter 5 apply to building nonresidential additions of 1,000 square feet or greater, and/or building alterations with a permit valuation of $200,000 or above (for occupancies within the authority of California Building Standards Commission). Code sections rele vant to additions and alterations shall only apply to the portions of the building being added or altered within the scope of the permitted work.

A code section will be designated by a banner to indicate where the code section only applies to newly constructed buildings [N] or to additions and alterations [ A]. When the code section applies to both, no banner will be used.

Tier 1 adopted. Nonresidential alterations (including tenant improvements or renovations) of 5,000 square feet that include replacement o f at least two of the following: HVAC system, building envelope, hot water system, or lighting system, must comply with CALGreen Mandatory plus Tier 1 measures, as amended by this Chapter and as applicable to the scope of work.

Tier 2 adopted. Nonresidential additions of 1000 square feet or greater must comply Item 23
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with CALGreen Mandatory plus Tier 2 measures, as amended by this Chapter and as applicable to the scope of work.

301.3.1 ‐ 301.3.2 Unmodified

301.3.3 Nonresidential new construction – Tier 2 adopted. All new nonresidential construction must meet CALGreen Mandatory plus Tier 2 measures, as amended by this ordinance and as applicable to the scope of work.
301.6 Special inspec tor requirements. Residential and nonresidential project owners subject to CALGreen Mandatory, CALGreen Mandatory plus Tier 1, or CALGreen Mandatory plus Tier 2 measures shall contract a Special Inspector in accordance with section 702.2 of CALGreen, as amended.

301.7 Low‐carbon concrete requirements for Tier 1 and Tier 2 projects. Plain and reinforced concrete installed as part of any project subject to the application of this code shall demonstrate compliance with the requirements of PAMC 16.14.240.

Part 5 – Local Modifications to CHAPTER 4 – RESIDENTIAL MANDATORY MEASURES Division 4.1 – PLANNING AND DESIGN

16.14.090
Section 4.106.5 Full Electrification
Section 4.106 of Chapter 4 of the California Green Building Standards Code is amended to add new subsection, 4.106.5 as follows:

4.106.5 Full electrification. Full electrification is recommended for new buildings, substantial remodels, and new outdoor appliances/equipment such as fireplaces, firepits, heaters for swimming pool/spa, and similar equipment. Full electrification is required for outdoor grills, stoves, and barbecues. This subsection does not prohibit freestanding and/or portable grills, stoves, or barbecues whose sole source of energy is self‐contained fuel canisters.

Division 4.3 – WATER EFFICIENCY AND CONSERVATION

16.14.100
Section 4.306 Swimming Pool and Spa Covers
Section 4.306 of Chapter 4 of the California Green Building Standards Code is added to read:

4.306 Swimming pool and spa covers. Swimming pools and spas shall be provided with a vapor retardant cover.

Part 6 – Local Modifications to CHAPTER 7 – INSTALLER AND SPECIAL INSPECTOR

QUALIFICATIONS
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16.14.120 Section 702.2 Special Inspection.

Section 702.2 of Chapter 7 of the California Green Building Standards Code is amended to read:
702.2 Green building special inspection. When required by the enforcing agency, the owner or responsible entity acting as the owner’s agent shall employ one or more Green Building Special Inspectors to provide inspection or other duties necessary to substantiate compliance with this code. Green Building Special Inspectors shall demonstrate competence to the satisfaction of the enforcing agency for the particular type of inspection or task to be performed. In addition to other certifications or qualifications acceptable to the enforcing agency, the following certifications or education may be considered by the enforcing agency when evaluating the qualifications of a Special Inspector. The City shall maintain a list of pre‐approved Special Inspectors in accord ance with this section. The owner shall contract a Special Inspector from the pre‐approved list meeting one of the following:

1. Certification by a national or regional green building program:

ICC Certified CALGreen Inspector/Plans Examiner

2. Other programs acceptable to the enforcing agency.

Note: Special Inspectors shall be independent entities with no financial interest in the materials or the project they are inspecting for compliance with this code.

Part 7– Local Modifications to APPENDIX A4 – RESIDENTIAL VOLUNTARY MEASURES

Division A4.1 – PLANNING AND DESIGN

16.14.130 Residential Projects. Appendix A4 Preface: Green Building Measures for Project Type and Scope.

A preface is added to Chapter A4 of the California Green Building Standards Code to read:

Preface ‐ Green Building Requirements for Project Type and Scope. For design and construction of residential projects, the City of Palo Alto requires compliance with the mandatory measures of Chapter 4, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on CALGreen Mandatory, Tier 1 Prerequisites and Electives, and Tier 2 Prerequisites and Electives. All elective measures are adopted as written under Appendix A4 unless otherwise indicated in this Section.

16.14.140 Section A4.104 SITE PRESERVATION.

Section A4.104.1 of Appendix A4 of the California Green Building Standards Code is adopted as a Tier 1 and Tier 2 elective measure and is amended to read:

A4.104.1 Supervision and education by a special inspector. Individuals with oversight authority on the project, as defined in section 16.14.120 of this code, who have been Item 23
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trained in areas related to environmentally friendly development, shall teach green concepts to other members of the builder’s staff and ensure training and written instruction has been provided to all parties associated with the development of the project. Prior to the beginning of the construction activities, the builder shall receive a written guideline and instruction specifying the green goals of the project.

Note: Lack of adequate supervision and dissemination of the project goals can result in negative effects on green building projects. If the theme of green building is not carried through the project, the overall benefit can be substantially reduced by the lack of knowledge and information provided to the various entities involved with the construction of the project.

16.14.150 Section A4.105 Deconstruction and Reuse of Existing Materials.

Section A4.105 of Appendix A4 of the California Green Building Standards Code is not adopted as an elective measure and is amended to read:

Section A4.105.1 Chapter 5.24 of Title 5 of the Municipal Code. See Chapter 5.24 of the Municipal Code for the local deconstruction requirements.

Section A4.105.2 is adopted as a Tier 1 and Tier 2 elective measure.

A4.105.2 Reuse of materials. Nonhazardous materials which can be easily reused include but are not limited to the following:

1. Light fixtures

2. Plumbing fixtures

3. Doors and trim

4. Masonry

5. Electrical devices

6. Appliances

7. Foundations or portions of foundations
Note: Reused material must be installed to comply the appropriate Title 24 provisions.

16.14.160 Section A4.106.8 Electric Vehicle (EV) Charging for New Construction.

Sections A4.106.8 – A4.106.8.2.1 of the California Green Building Standards Code are deleted in its entirety, adopted as mandatory measures and is amended to read:

A4.106.8 Electric vehicle (EV) charging for residential structures. Newly constructed single‐family and multi‐family residential structures, including residential structures constructed as part of a mixed‐use development, shall comply with the following Item 23
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requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 4.106.4 of the California Green Building Standards Code. In the event of a conflict between this section and Section

4.106.4 of the California Green Building Standards Code, the more robust EV Charging requirements shall prevail.

A4.106.8.1 New single‐family, duplex and townhouse dwellings. The following standards apply to newly constructed detached and attached single‐family, duplex and townhouse residences.
(a) In general. The property owner shall provide One (1) Level 2 electrical vehicle supply equipment (EVSE) or one (1) EV ready space (Low Power Level 2 EV Charging Receptacle is acceptable provided that the infrastructure comply with section 4.106.4.1) for each residence (except for accessory dwelling unit (ADU)). (b) Location. The proposed location of a charging station may be internal or external to the dwe lling and shall be in close proximity to an on‐site parking space consistent with city regulations.

A4.106.8.2 New multi‐family dwellings. The following standards apply to newly constructed residences in a multi‐family residential structure. (a) Resident parking. The property owner shall provide at least one (1) Level 2 electrical vehicle supply equipment (EVSE) or one (1) Level 2 EV Ready space for each residential unit in the structure (Low Power Level 2 EV Charging Receptacle is acceptable for 60% of the total EV parking spaces) . (b) Guest parking . The property owner shall provide EV Capable Space, EV‐Ready Space, or EVSE Installed, for at least 25% of guest parking spaces, among which at least 10% (and no fewer than one) shall be EVSE Installed. (c) Accessible spaces. Projects shall comply with the 2022 California Building Code requirements for accessible electric vehicle parking.
(d) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee, to support the EV requirements specified in (a) and (b) above.
(e) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. In addition, if parking is deed‐restricted to individual residential units, the EVSE or receptacles required by subsection (a) shall be located such that each unit has access to its own EVSE or receptacle. Location of EVSE or receptacles shall be consistent with all city regulations.

A4.106.8.3 New hotels and motels. The following standards apply to newly constructed hotels.

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(a) In general. The property owner shall provide at least 40% EV Ready Space and at least 10% Level 2 EVSE installed for of the total parking spaces. (b) Accessible spaces. Projects shall comply with the 2022 California Building Code requirements for accessible electric vehicle parking.
(c) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee, to support a Level 2 EVSE in every location where EV‐Ready space or EVSE Installed is required. (d) Location. The EVSE and/or receptacles, required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations.

16.14.170 Section A4.106.9 Bicycle Parking.

Section A4.106.9 of Appendix A4 of the California Green Building Standards Code is not adopted as a Tier 1 and Tier 2 elective measure. Projects must comply with the bicycle parking requirements in the Palo Alto Municipal Code.

16.14.180
Section A4.106.10 Light Pollution Reduction.

Section A4.106.10 is added and adopted as a Tier 1 and Tier 2 elective measure for all covered projects and is amended to read:

A4.106.10 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following:

1. The minimum requirements in the California Energy Code for Lighting Zones 1‐4 as defined in Chapter 10 of the California Administrative Code; and

2. Backlight, Up light and Glare (BUG) ratings as defined in IES TM‐15‐11; and

3. Allowable BUG ratings not exceeding those shown in TABLE 5.106.8 [N]; or Comply with a local ordinance lawfully enacted pursuant to Section 101.7 of this code, whichever is more stringent.

Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable.

Exceptions:

1. Luminaires that qualify as exceptions to the California Energy Code.

2. Emergency lighting.

3. One‐ and two‐family dwellings.

Note: The International Dark‐Sky Association (IDA) and the Illuminating Engineering Society of North America (IESNA) have developed a Model Lighting Ordinance (MLO).

The MLO was designed to help municipalities develop outdoor lighting standards that reduce glare, light trespass, and skyglow. The model ordinance and user guides for Item 23
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the ordinance may be accessed at the International Dark‐Sky Association web site.

Division A4.2 – ENERGY EFFICIENCY

16.14.190 Section A4.203.1 Performance Approach for Newly Constructed Buildings.

Section A4.203.1 of Appendix A4 of the California Green Building Standards Code is not adopted as a Tier 1 and Tier 2 elective measure. Projects shall comply with Chapter 16.17 of the Palo Alto Municipal Code (California Energy Code).

Division A4.3 – WATER EFFICIENCY AND CONSERVATION

16.14.200 Section A4.304.3 Irrigation Metering Device.

Section A4.304.3 of Appendix A4 of the California Green Building Standards Code is adopted as a Tier 1 and Tier 2 elective measure and is amended to read:

A4.304.3 Irrigation metering device. Dedicated irrigation meters from CPAU are to be installed in all new construction and rehabilitated landscapes when the landscape is greater than 1,000 square feet.

16.14.210
Section A4.305 Water Reuse Systems.

Sections A4.305.1, A4.305.2, and A4.305.3 of Appendix A4 of the California Green Building Standards Code are adopted as Tier 1 and Tier 2 elective measures and are amended to read:

A4.305.1 Graywater. Alternative plumbing piping is installed to permit the discharge from the clothes washer and other fixtures (except toilets and kitchen sinks) to be used for an irrigation system in compliance with the California Plumbing Code . In the event that the whole house graywater system is installed in compliance with the California Plumbing Code, then this measure shall count as 3 electives.

A4.305.2 Recycled water piping. Based on projected availability, dual water piping is installed for future use of recycled water at the following locations:

1. Interior piping for the use of recycled water is installe d to serve all water closets, urinals, and floor drains.

2. Exterior piping is installed to transport recycled water from the point of connection to the structure. Recycled water systems shall be designed and installed in accordance with the California Plumbing Code.

A4.305.3 Recycled water for landscape irrigation. Recycled water piping is used for landscape irrigation.

16.14.220
A4.305.4 Additions and Alterations.

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Section A4.305.4 is added as Tier 1 and Tier 2 prerequisite and amended to read:

A4.305.4 Additions and alterations. All multi‐family residential additions and alterations must install recycled water infrastructure for irrigation when the landscape area exceeds 1,000 square feet.

Division A4.4 – MATERIAL CONSERVATION AND RESOUCE EFFICIENCY

16.14.230 Section A4.403.1 Frost Protection Foundation Systems.

Sections A4.403.1 is not adopted as a Tier 1 and Tier 2 elective measure.

16.14.240 Section A4.403.2 Reduction in cement use.

Section A4.403.2 of Appendix A4 of the California Green Building Standards Code is adopted as a Mandatory measure for all Tier 1 and Tier 2 projects and is amended to read:

A4.403.2 Low carbon concrete requirements.

A4.403.2.1 Purpose. The purpose of this chapter is to provide practical standards and requirements for the composition of concrete, as defined herein, that maintains adequate strength and durability for the intended application and at the same time reduces green house gas emissions associated with concrete composition. This code includes pathways for compliance with either reduced cement levels or lower‐emission supplementary cementitious materials.

A4.403.2.2 Definitions. For the application of this section the following definitions shall apply:

Concrete. Concrete is any approved combination of mineral aggregates bound together into a hardened conglomerate in accordance with the requirements of this code.

Environmental product declaration (EPD). EPDs present quantified environmental information on the life cycle of a product to enable comparisons between products fulfilling the same function. EPDs must conform to ISO 14025, and EN 15804 or ISO 21930, and have at least a "cradle to gate" scope (which covers product life cycle from resource extraction to the factory).

Upfront embodied carbon (embodied carbon). The greenhouse gasses emitted in material extraction, transportation and manufacturing of a material corresponding to life cycle stages A1 (extraction and upstream production), A2 (transportation), and A3 (manufacturing). Definition is as noted in ISO 21930 and as defined in V2.3 Product Category Rule for Concrete by NSF dated November 2023.
https://d2evkimvhatqav.cloudfront.net/documents/PCR‐Product‐Category‐Rules/PCR‐Concrete‐2023‐deviation.pdf A4.403.2.3 Compliance. Compliance with the requirements of this chapter shall be demonstrated through any of the compliance options in Sections 4.403.2.3.2 through

4.403.2.3.5:

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TABLE A4.403.2.3 Cement and Embodied Carbon Limit Pathways

A4.403.2.3.1 Allowable increases.
(1) Cement and Embodied Carbon Limit Allowances. Cement or Embodied Carbon limits shown in Table A4.403.2.3 can be increased by 30% for concretes demonstrated to the Building Official as requiring high early strength. Such concretes could include, but are not limited to, precast, prestressed concrete; beams and slabs above grade; and shotcrete (2) Approved Cements. The maximum cement content may be increased proportionately above the tabulated value when using an approved cement, or blended cement, demonstrated by approved EPD to have a plant‐specific EPD lower than 1040 kg CO2e/metric ton. The increase in allowable cement content would be (1040 / plant=specific EPD) %.

A4.403.2.3.2 Cement limit method — mix. Cement content of a concrete mix using this method shall not exceed the value shown in the Table A4.403.2.3. Use of this method is limited to concrete with specified compressive strength not exceeding 5,000 psi.

A4.403.2.3.3 Cement limit method — project. Total cement content shall be based on total cement usage of all concrete mix designs within the same project. Total cement content for a project shall not exceed the value calculated according to Equation A4.403.2.3.3.

Equation A4.403.2.3.3:

Cem
proj < Cem allowed
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where
Cem proj = ΣCem n v n and Cem allowed = ΣCem lim v n
and
n = the total number of concrete mixtures for the project Cem n = the cement content for mixture n , kg/m 3 or lb/yd 3 Cem lim = the maximum cement content for mixture n per Table A4.403.2.3, kg/m 3 or lb/yd 3
v n = the volume of mixture n concrete to be placed, yd 3 or m 3 Applicant can use yd 3 or m 3 for calculation, but must keep same units throughout A4.403.2.3.4. Embodied carbon method — mix. Embodied carbon of a concrete mix, based on an approved environmental product declaration (EPD), shall not exceed the value given in Table A4.403.2.3.

A4.403.2.3.5. Embodied carbon method — project. Total embodied carbon (EC proj ) of all concrete mix designs within the same project shall not exceed the project limit (EC allowed ) determined using Table A4.403.2.3 and Equation A4.403.2.3.5.

Equation A4.403.2.3.5:

EC proj < EC allowed
where
EC proj = ΣEC n v n and EC allowed = ΣEC lim v n
and
n = the total number of concrete mixtures for the project EC n = the embodied carbon potential for mixture n per mixture EPD, kg/m 3 EC lim = the embodied carbon potential limit for mixture n per Table A4.403.2.3, kg/m3 v n = the volume of mixture n concrete to be placed, yd 3 or m 3 Applicant can use yd 3 or m 3 for calculation, but must keep same units throughout.

A4.403.2.3.6. Enforcement.

As a condition prior to the issuance of every building permit involving placement of concrete, the permit applicant shall be required to submit a completed low‐carbon concrete compliance form that shall be provided by and reviewed for compliance by the building department prior to issuing the permit.

As a condition of such building permits, and prior to approving construction inspections following placement of concrete, the permit applicant shall be required to submit batch certificates and/or EPDs provided by the concrete provider that demonstrate compliance with the low‐carbon concrete compliance form on file with the building permit. The batch certificates and/or EPDs shall be reviewed for compliance by the building department prior Item 23
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to approving any further inspections.

When deviations from compliance with this section occur, the chief building official or his designee is authorized to require evidence of equivalent carbon reductions from the portions of remaining construction of the project to demonstrate alternative compliance with the intent of this chapter.

For projects involving placement of concrete by , or on behalf of, a public works, parks, or similar department the director of such department, or his/her assignee, shall maintain accurate records of the total volume (in cubic yards) of all concrete placed, as well as the total compliant volume (in cubic yards) of all concrete placed, and shall report this data annually to the governing body in a form expressing an annual compliance percentage derived from the quotient of total compliant concrete volume placed divided by total concrete volume placed.

A4.403.2.3.7. Exemptions.
(a) Hardship or infeasibility exemption. If an applicant for a project subject to this chapter believes that circumstances exist that make it a hardship or infeasible to meet the requirements of this chapter, the applicant may request an exemption as set forth below.

In applying for an exemption, the burden is on the applicant to show hardship or infeasibility. The applicant shall identify in writing the specific requirements of the standards for compliance that the project is unable to achieve and the circumstances that make it a hardship or infeasible for the project to comply with this chapter. Circumstances that constitute hardship or infeasibility may include, but are not limited to the following:
(1) There is a lack of commercially available material necessary to comply with this chapter; (2) The cost of achieving compliance is disproportionate to the overall cost of the project; (3) Compliance with certain requirements would impair the historic integrity of buildings listed on a local, state or federal list or register of historic structures as regulated by the California Historic Building Code (Title 24, Part 8).
(b) Granting of exemption. If the chief building official determines that it is a hardship or infeasible for the applicant to fully meet the requirements of this chapter and that granting the requested exemption will not cause the building to fail to comply wi th the California Building Standards Code, the chief building official shall determine the maximum feasible threshold of compliance reasonably achievable for the project. In making this determination, the chief building official shall consider whether alternate, practical means of achieving the objectives of this chapter can be satisfied. If an exemption is granted, the applicant shall be required to comply with this chapter in all other respects and shall be required to achieve the threshold of compliance determined to be achievable by the chief building official.
(c) Denial of exception. If the chief building official determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied and the applicant shall be notified of the decision in writing. The project and compliance documentation shall be modified to comply with the standards for compliance.

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16.14.250 Section A4.408.1 Enhanced Construction Waste Reduction.

Section A4.408.1 of Appendix A4 of the California Green Building Standards Code is adopted as a mandatory measure and is amended to read:

A4.408.1 Enhanced construction waste reduction. Nonhazardous construction and demolition debris generated at the site is diverted to recycle or salvage in compliance with the following:

Projects with a given valuation of $25,000 or more must have at least an 80‐percent reduction. Any mixed recyclables that are sent to mixed‐waste recycling facilities shall include a qualified third party verified facility average diversion rate. Verificat ion of diversion rates shall meet minimum certification eligibility guidelines, acceptable to the local enforcing agency.

Exceptions:

1. Residential stand‐alone mechanical, electrical or plumbing permits.

2. Commercial stand‐alone mechanical, electrical or plumbing permits.

A4.408.1.1 Documentation. Documentation shall be provided to the enforcing agency which demonstrates compliance with all construction and demolition waste reduction requirements.

Division A4.5 – ENVIRONMENTAL QUALITY

16.14.260
Section A4.504.1 Compliance with Formaldehyde Limits.

Section A4.504.1 of Appendix A5 of the California Green Building Standards Code is adopted as a Tier 1 and Tier 2 elective measure.

16.14.270 Section A4.504.3 Thermal Insulation.

Section A4.504.3 of Appendix A5 of the California Green Building Standards Code is not adopted as a Tier 1 and Tier 2 prerequisite. Section A4.504.3 is adopted as a Tier 1 and Tier 2 elective measure.

Part 8 – Local Modifications to CHAPTER 5 – NONRESIDENTIAL MANDATORY MEASURES

Division 5.1 – PLANNING AND DESIGN

16.14.280 Nonresidential Projects: Chapter 5 Preface Green Building Requirements for Project Type and Scope.

A Preface is added to Chapter 5 of the California Green Building Standards Code to read:

Preface – Green Building Requirements for Project Type and Scope. For design and Item 23
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construction of nonresidential projects, the City requires compliance with the mandatory measures of Chapter 5, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on CALGreen MANDATORY, Tier 1 prerequisites and electives, and Tier 2 prerequisites and electiv es.

All elective measures are adopted as written under Appendix A5 unless otherwise indicated in this Section.

16.14.290 Section 5.106.1.1 Local Stormwater Pollution Prevention.

Section 5.106.1.1 of Chapter 5 of the California Green Building Standards Code is amended to read:

5.106.1.1 Local ordinance. Newly constructed projects and additions shall comply with additional City of Palo Alto stormwater runoff management and pollution prevention measures as applicable, and as may be amended from time to time.

16.14.295 Section 5.106.8 Light Pollution Reduction.

Section 5.106.8 of Chapter 5 of the California Green Building Standards Code is amended to read:

5.106.8 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following:

1. The minimum requirements in the California Energy Code for Lighting Zones 0‐4 as defined in Chapter 10, Section 10‐114 of the California Administrative Code; and

2. Backlight (B) ratings as defined in IES TM‐15‐11 (shown in Table A‐1 in Chapter 8);

3. Uplight and Glare ratings as defined in California Energy Code (shown in Tables 130.2‐A and 130.2‐B in Chapter 8); and

4. Allowable BUG ratings not exceeding those shown in Table 5.106.8 [N]; or Comply with a local ordinance lawfully enacted pursuant to Section 101.7, whichever is more stringent.

Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable.

Exceptions:

1. Luminaires that qualify as exceptions in Section 103.2(b) and 140.7 of the California Energy Code.

2. Emergency lighting.

3. Building facade meeting the requirements in Table 140.7‐B of the California Energy Code, Part 6.

4. Custom lighting features as allowed by the local enforcing agency, as permitted by Section 101.8 Alternate materials, designs and methods of construction.

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5. Luminaires with less than 6,200 initial luminaire lumens.

16.14.300 Section 5.106.13 Full Electrification.

Section 5.106 of Chapter 4 of the California Green Building Standards Code is amended to add new subsection, 5.106.13 as follows:

5.106.13 Full electrification. Full electrification is recommended for new buildings, substantial remodels, and new outdoor appliances/equipment such as fireplaces, firepits, heaters for swimming pool/spa, and similar equipment. Full electrification is required for outdoor grills, stoves, and barbecues. This subsection does not prohibit freestanding and/or portable grills, stoves, and barbecues whose source of energy is self‐contained fuel canisters.

16.14.310 Reserved

16.14.320 Reserved

Division 5.3 – WATER EFFICIENCY AND CONSERVATION

16.14.330 Section 5.304.2 Invasive Species Prohibited.

Section 5.304.2 of Chapter 5 of the California Green Building Standards Code is added as mandatory measure to read:

5.304.2 Invasive species prohibited. All nonresidential new construction, additions, and alterations shall not install invasive species in a landscape area of any size.

16.14.340 Section 5.306 Nonresidential Enhanced Water Budget.

Section 5.306 of Chapter 5 of the California Green Building Standards Code is added as mandatory measure to read:

5.306 Nonresidential enhanced water budget. Nonresidential buildings anticipated to use more than 1,000 gallons of water a day shall complete an Enhanced Water Budg et Calculator as established by the Chief Building Official or designee.

16.14.350 Section 5.307 Cooling Tower Water Use.

Section 5.307 Cooling Tower Water Use is added as mandatory to read:

5.307 COOLING TOWER WATER USE

5.307.1. Cooling tower water use in high rise residential or nonresidential buildings.

Cooling tower water use must meet the conditions as follows and as outlined in Palo Alto Item 23
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Municipal Code Section 16.08.100. Projects are required to perform a potable water analysis at the site to meet the maximum concentration of parameters noted in Table

5.307.1

TABLE 5.307.1
Ca (as CaCO3) 600 ppm
Total alkalinity 500 ppm
SiO2 150 ppm
Cr 300 ppm
Conductivity 3300 Us/cm

Calculate maximum number of cycles that can be achieved with these levels of concentration shall be included in the plumbing design plans.

Division 5.4 – MATERIAL CONSERVATION AND RESOUCE EFFICIENCY

16.14.360 Section 5.410.4.6 Energy STAR Portfolio Manager.

Section 5.410.4.6 of Chapter 5 of the California Green Building Standards is added as mandatory measure to read:

5.410.4.6 Energy STAR portfolio manager. All nonresidential projects exceeding $100,000 valuation must provide evidence of an Energy STAR Portfolio Manager project profile for both water and energy use prior to Permit Issuance, acquire an Energy STAR Portfolio Manager Rating, and submit the rating to the City of Palo Alto once the pr oject has been occupied after 12 months.

16.14.370 Section 5.410.4.7 Performance Reviews – Energy.

Section 5.410.4.7 of Chapter 5 of the California Green Building Standards is added to read:

5.410.4.7 Performance reviews – energy. All projects over 10,000 square fe et. The City reserves the right to conduct a performance review, no more frequently than once every five years unless a project fails review, to evaluate the building's energy use to ensure that resources used at the building and/or site do not exceed the maximum allowance set forth in the rehabilitation or new construction design. Following the findings and recommendations of the review, the City may require adjustments to the energy usage or energy‐using equipment or systems if the building is no longer compliant with the original design. Renovation or rehabilitation resulting from such audit activity shall be considered a project and shall be subject to applicable documentation submittal requirements of the City. This section is effective only for those projects for which a building permit was issued after January 1, 2009.

16.14.380 Section 5.410.4.8 Performance Reviews – Water.

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Section 5.410.4.8 of Chapter 5 of the California Green Building Standards is added to read:

5.410.4.8 Performance reviews – water. All sites greater than one acre: The City reserves the right to conduct performance reviews, no more frequently than once every five years unless a project fails review, to evaluate water use to ensure that resources used at the building and/or site do not exceed a maximum allowance set forth in the rehabilitation or new construction design. Water use reviews may be initiated by CPAU, o r as a coordinated effort between the CPAU and the Santa Clara Valley Water District (SCVWD), or as part of SCVWD's established water conservation programs. Following the findings and recommendations of the review, the City may require adjustments to irrigation usage, irrigation hardware, and/or landscape materials to reduce consumption an d improve efficiency. Renovation or rehabilitation resulting from such audit activity shall be considered a project and shall be subject to applicable documentation submittal requirements of the City.

16.14.390 Section 5.506 Indoor Air Quality.

Section 5.506.4 of Chapter 5 of the California Green Building Standards is added as mandatory measure to read:

Section 5.506.4 Indoor air quality management plan. All commercial and multi‐ family projects must submit an Indoor Air Quality Management Plan (IAQ) with building permit application in accordance with the Sheet Metal and Air Conditioning Contractors National Association (SMACNA IAQ) Guidelines for Occupied Buildings Under Construction, 2nd edition ANSI/SMACNA 008‐2008.

Part 9 – Local Modifications to APPENDIX A5 – NONRESIDENTIAL VOLUNTARY MEASURES Division A5.1 – PLANNING AND DESIGN

16.14.400 Section A5.106.5.3 Electric Vehicle (EV) Charging for New Construction.

Section A5.106.5.3 – A5.106.5.3.4 of the California Green Building Standards Code are deleted in its entirety, adopted as mandatory measures and is amended to read:

A5.106.5.3 Electric vehicle (EV) charging for nonresidential structures. New non‐ residential structures shall comply with the following requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 5.106.5.3 of the California Green Building Standards Code.

In the event of a conflict between this section and Section 5.106.5.3, the more robust EV Charging requirements shall prevail.

A5.106.5.3.5 Nonresidential structures other than hotels. The following standards apply to newly constructed nonresidential structures other than hotels.

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In general. For building with 10 to 20 parking spaces, the property owner shall provide at least 20% EV Capable or EVSE‐Ready space, and at least 20% Level 2 EVSE installed of the total parking spaces.

For building with over 20 parking spaces, the property owner shall provide at least 15% EV Capable or EVSE‐Ready space, and at least 15% EVSE installed for of the total parking spaces
Accessible spaces. Projects shall comply with the 2022 California Building Code requirements for accessible electric vehicle parking.

Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee , to support a Level 2 EVSE in every location where EVSE Capable space, EVSE‐Ready space or EVSE I nstalled is required.

Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all city regulations.

Division A5.4 – ENERGY EFFICIENCY

16.14.410
Section A5.203.1 Performance Approach for Newly Constructed Buildings.

Section A5.203.1 of Appendix A5 of the California Green Building Standards Code is not adopted as a Tier 1 and Tier 2 elective measure. Projects shall comply with Chapter 16.17 of the Palo Alto Municipal Code (California Energy Code).

Division A5.4 – MATERIAL CONSERVATION AND RESOUCE EFFICIENCY

16.14.420 Section A5.405.5 Cement and Concrete.

Section A5.405.5 of Appendix A5 of the California Green Building Standards Code is adopted as a Mandatory measure for Tier 1 and Tier 2 projects and is amended to read:

A5.405.5 Cement and concrete. Use cement and concrete made with recycled products and complying with the following sections and requirements per PAMC Chapter

16.14.240.

16.14.430
Section A5.408 Construction Waste Reduction, Disposal and Recycling.

Section A5.408 of Appendix A5 of the California Green Building Standards Code is adopted as a Mandatory measure for Tier 2 projects and is amended to read:

A5.408.3.1 Waste enhanced construction waste reduction. (80% construction waste reduction) as a mandatory requirement for all nonresidential construction, including new construction, additions, and alterations, as long as the construction has a valuation of $25,000 or more. Nonresidential projects with a lower valuation shall remain subject to Item 23
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California Green Building Standards Code Chapter 5 mandatory measures.

Exceptions:

1. Residential stand‐alone mechanical, electrical or plumbing permits.

2. Commercial stand‐alone mechanical, electrical or plumbing permits.

A5.408.3.1.1 ‐ Deleted
A5.408.3.1.2 Documentation. Documentation shall be provided to the enforcing agency which demonstrates compliance with all construction and demolition waste reduction requirements.

SECTION 3. The Council adopts the findings for local amendments to the California Green Building Standards Code, 2022 Edition, attached hereto as Exhibit “A” and incorporated herein by reference.

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

SECTION 5 . The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment and Section 15308, because the amendments herein adopted is an action taken by the City to assure the maintenance, restoration, enhancement, or protection of the environment.

//
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SECTION 6. This Ordinance shall be effective on the thirty‐first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Chief Assistant City Attorney City Manager

Director of Planning and
Development Services

Director of Administrative Services
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Exhibit A

FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA GREEN BUILDING STANDARD CODE TITLE 24, PART 11

Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions.

Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970 and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation do not require findings.

Code: California Green Building Standard Code, Title 24, Part 11 Chapter(s),
Sections(s),
Appendices
Title Add Deleted Amended Justification
(See below of keys)
101.4 Appendices  A
202 Definitions  A
301 Voluntary Tiers Added  C, E
301.1 Scope  C, E
301.1.1 Residential additions and alterations  C, E
301.2 Low‐rise and high‐rise residential buildings  C, E 301.2.1 Low‐Rise residential new construction –
Tier 2 adopted
 C, E
301.3 Nonresidential additions and alterations  C, E 301.3.3 No‐residential new construction – Tier 2  C, E 301.6 Special inspector requirements  C, E
301.7 Low‐carbon concrete requirements for Tier
1 and Tier 2 projects
 C, E

4.306 Swimming pool and spa covers  C, E

4.509 Heat pump water heater 
702.2 Green building special inspection  C, E
A4.104.1 Supervision and education by a special
inspector
 C, E
A4.105.1 Chapter 5.24 of Title 5 of the Municipal
Code
 C, E
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A4.105.2 Reuse of materials  C, E
A4.106.8 Electric vehicle (EV) charging for residential structures
C, E
A4.106.8.1 New single‐family, duplex and townhouse
dwellings
 C, E
A4.106.8.2 New multi‐family dwellings.  C, E
A4.106.8.3 New hotels and motels  C, E
A4.106.9 Bicycle Parking  C, E
A4.106.10 Light pollution reduction  C, E
A4.203.1 Performance Approach for Newly
Constructed Buildings
 C, E
A4.304.3 Irrigation metering device  C, E
A4.305.1 Graywater  C, E
A4.305.2 Recycled water piping  C, E
A4.305.3 Recycled water for landscape irrigation  C, E A4.305.4 Additions and alterations  C, E
A4.403.1 Frost Protection Foundation Systems  C
A4.403.2 Reduction in cement use  C, E
A4.403.2.1 Purpose  C, E
A4.403.2.2 Definitions  C, E
A4.403.2.3 Compliance  C, E
Table
A4.403.2.3
Cement and Embodied Carbon Limit
Pathways
 C, E
A4.403.2.3.1 Allowable increases  C, E
A4.403.2.3.2 Cement limit method ‐ mix  C, E
A4.403.2.3.3 Cement limit method ‐ project  C, E
A4.403.2.3.4 Embodied carbon method ‐ mix  C, E
A4.403.2.3.5 Embodied carbon method ‐ project  C, E
A4.403.2.3.6 Enforcement  A
A4.403.2.3.7 Exemptions  A
A4.408.1 Enhanced construction waste reduction  C, E A4.408.1.1 Documentation  A
A4.504.1 Compliance with Formaldehyde Limits  C, E
A4.504.3 Thermal Insulation  C, E

5.106.1.1 Local Storm Water Pollution Prevention  C, E

5.106.1.1 Local ordinance  C, E

5.106.8 Light pollution reduction  C, E

5.304.2 Invasive species prohibited  C

5.306 Nonresidential enhanced water
budget
 C, E

5.307.1 Cooling tower water use in high‐rise
residential or nonresidential buildings
 C, E
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5.410.4.6 Energy STAR portfolio manager  C, E

5.410.4.7 Performance reviews – energy  C, E

5.410.4.8 Performance reviews – water  C, E

5.506.4 Indoor air quality management plan  E
A5.106.5.3 Electric vehicle (EV) charging for
nonresidential structures
 C, E
A5.106.5.3.5 Nonresidential structures other than hotels  C, E A5.203.1 Performance Approach for Newly
Constructed Buildings
 C, E
A5.405.5 Cement and concrete  C, E
A5.408.3.1 Waste enhanced construction waste
reduction
 C, E
A5.408.3.1.1 Enhanced construction waste reduction –
Tier 2
 A
A5.408.3.1.2 Documentation  A

Key to Justification for Amendments to Title 24 of the California Code of Regulations

A This is an administrative amendment to clarify and establish civil and administrative procedures, regulations, or rules to enforce and administer the activities by the Palo Alto Building Inspection Department. These administrative amendments do not need to meet HSC 18941.5/17958/13869 per HSC 18909(c).

C This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. Natural gas combustion and gas appliances emit a wide range of air pollutants, such as carbon monoxide (CO), nitrogen oxides (NOx, including nitrogen dioxide (NO2)) , particulate matter (PM), and formaldehyde, which according to a UCLA Study, have been linked to various acute and chronic health effects, and additionally exceed levels set by national and California‐based ambient air quality standards. The burning of fossil fuels used in the generation of electric power and heating of buildings contributes to climate change, which could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses, public facilities, and Highway 101 (Bayshore Freeway), particularly the mapped Flood Hazard areas of the City. Energy efficiency is a key component in reducing GHG emissions, and construction of more energy efficient buildings can help Palo Alto reduce its share of the GHG e missions that contribute to climate change. All‐electric new buildings benefit the health, safety, and welfare, of Palo Alto and its residents. Requiring all‐electric construction, without gas infrastructure will reduce the amount of greenhouse gas produced in Palo Alto and will contribute to reducing the impact of climate change and the associated risks. Due to decrease in annual Item 23
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rain fall, Palo Alto experiences the effect of drought and water saving more than some other communities in California. Embodied carbon of concrete is a significant contributor to greenhouse gas emissions and climate change, and this amendment includes a requirement to use low‐carbon concrete. Providing additional capacity for electric vehicle use reduces use of gasoline which is a major contributor to climate change.

E Green building enhances the public health and welfare by promoting the environmental and economic health of the City through the design, construction, maintenance, operation and deconstruction of buildings and sites by incorporating green practices into all development. The green provisions in this Chapter are designed to achieve the following goals:
(a) Increase energy efficiency in buildings;
(b) Reduce the use of natural gas in buildings which improves indoor environmental quality and health;
(c) Reduce the use of natural gas which will reduce the natural gas infrastructure and fire risk over time;
(d) Reduce the embodied carbon of concrete which reduces greenhouse gas emissions;
(e) Increase water and resource conservation;
(f) Reduce waste generated by construction and demolition projects; (g) Provide durable buildings that are efficient and economical to own and operate; (h) Promote the health and productivity of residents, workers, and visitors to the city; (i) Recognize and conserve the energy embodied in existing buildings; (j) Increase capacity for use of electric vehicles which reduces greenhouse gas emissions and improves air quality;
(k) Encourage alternative transportation; and
(l) Reduce disturbance of natural ecosystems.

G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for Item 23
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repair of damaged properties following a local emergency. Reduction or eliminating of natural gas infrastructure over time will reduce maintenance costs and fire risk in difficult geological conditions.

T The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run‐off.

Also, the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. In addition, the reduction or elimination of natural gas infrastructure reduces the likelihood of fire or environmental damage should they become disrupted due to challenging topographic conditions during construction or repair.

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Ordinance No. XXXX
Ordinance of the Council of the City of Palo Alto Amending Chapter 16.17 (California Energy Code, California Code of Regulations, Title 24, Part 6) of the Palo Alto Municipal Code to Adopt the 2022 California Energy Code, Along With Local Amendments Thereto, to Increase Energy Efficiency Standards for Buildings, Mandate Electric‐Ready Requirements, and Incentivize All‐Electric New Construction.

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings and Declarations.
(a) The City of Palo Alto adopted a Sustainability and Climate Action Plan, or S/CAP, to meet the City's stated goal of "80 x 30": reducing greenhouse gas emissions 80% below 1990 levels by 2030.
(b) The S/CAP outlines goals and key actions in eight areas, one of which is energy and more specifically, energy efficiency and electrification. The goals for the energy area of the S/CAP are to reduce GHG emissions from the direct use of natural gas in Palo Alto’s building sector by at least 60% below 1990 levels (116,400 MT CO2e reduction) and to modernize the electric grid to support increased electric demand to accommodate state‐ of‐the‐art technology.
(c) One key action the City is taking to accomplish those goals is to use codes and ordinances ‐ such as the energy reach code, green building ordinance, zoning code, or other mandates ‐ to facilitate electrification in both existing buildings and new construction projects where feasible.
(d) The purpose of this ordinance is to formally adopt California Code of Regulations, Title 24, Part 11, 2022 California Green Building Standards Code, with local amendments in furtherance of the City of Palo Alto’s S/CAP goals.
(e) California Health and Safety Code sections 17958.5 and 17958.7 requires that the City, in order to make changes or modifications in the requirements contained in the California Green Building Standards on the basis of local conditions, make express finding that such modifications or changes are reasonably necessary because of local climatic, geological or topographical conditions.
(f) The required findings are attached to this ordinance as Exhibit A.

SECTION 2. Chapter 16.17 (California Energy Code, California Code of Regulations, Title 24, Part 6) of the Palo Alto Municipal Code is hereby amended by repealing in its entirety existing Chapter

16.17 and adopting a new Chapter 16.17 to read as follows:

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CHAPTER 16.17

CALIFORNIA ENERGY CODE,
CALIFORNIA CODE OF REGULATIONS, TITLE 24, PART 6

Sections

16.17.010 2022 California Energy Code, Title 24, Part 6 adopted.

16.17.020 Cross ‐ References to California Energy Code

16.17.030 Local Amendments

16.17.040 Administration & Enforcement of 2022 California Energy Code

16.17.050 Violations – Penalties

16.17.060 Section 100.1 Definitions and Rules of Construction

16.17.070 Section 110.10 Mandatory Requirements for Solar Ready Buildings

16.17.080 Subchapter 4 Nonresidential, High‐Rise Residential, and Hotel/Motel Occupancies – Mandatory Requirements for Lighting Systems and Equipment, and Electrical Power Distribution Systems

16.17.090 Section 130.6 Electric Readiness Requirements for Systems Using Gas or Propane

16.17.100 Subchapter 5 Nonresidential and Hotel/Motel Occupancies — Performance and Prescriptive Compliance Approaches for Achieving Efficiency

16.17.110 Section 140.1 Performance Approach: Energy Budgets

16.17.120 Subchapter 7 Single‐family Residential Building – Mandatory Features and Devices

16.17.130 Subchapter 8 Single‐family Residential Buildings – Performance and Prescriptive Compliance Approaches

16.17.140 Subchapter 10 Multifamily Buildings — Mandatory Requirements

16.17.150 Section 160.9 Mandatory Requirements for Electric Ready Buildings

16.17.160 Subchapter 11 Multifamily Buildings — Performance and Prescriptive Compliance Approaches

16.17.170 Infeasibility Exemption

16.17.180 Appeal

16.17.010 2022 California Energy Code, Title 24, Part 6 adopted.

The California Energy Code, 2022 Edition, Title 24, Part 6 of the California Code of Regulations together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Except as amended herein, all requirements of the California Energy Code, 2022 Edition, Title 24, Part 6 of the California Code of Regulations shall apply.

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Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former editions of the California Code of Regulations, Title 24, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2022. Ordinance No. 5571 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed.

One copy of the California Energy Code, 2022 Edition, has been filed for use and examination of the public in the Office of the Chief Building Official of the City of Palo Alto.

16.17.020 Cross ‐ References to California Energy Code The provisions of this Chapter contain cross‐references to the provisions of the California Energy Code, 2022 Edition, in order to facilitate reference and comparison to those provisions.

16.17.030 Local Amendments
The provisions of this Chapter shall constitute local amendments to the cross‐ referenced provisions of the California Energy Code, 2022 Edition, and shall be deemed to replace the cross‐ referenced sections of said Code with the respective provisions set forth in this Chapter.

16.17.040 Administration & Enforcement of 2022 California Energy Code Administration and enforcement of this code shall be governed by Chapter 1, Division II of the 2022 California Building Code as amended by Palo Alto Municipal Code Chapter 16.04.

16.17.050
Violations ‐ Penalties
It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this Chapter or any permits, conditions, or variances granted under this Chapter.

Violators shall be subject to any penalty or penalties authorized by law, including but not limited to: administrative enforcement pursuant to Chapters 1.12 and 1.16 of the Palo Alto Municipal Code; and criminal enforcement pursuant to Chapter 1.08 of the Palo Alto Municipal Code. Each separate day or any portion thereof during which any violation of this Chapter occurs or continues shall be deemed to constitute a separate offense.

When the chief building official determines that a violation of this Chapter has occurred, the chief building official may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the chief building official shall issue and record a release of the notice of pendency of code violation.

16.17.060 Section 100.1 Definitions and Rules of Construction Section 100.1(b) of Subchapter 1 of the California Energy Code is amended by adding the following definitions:

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Standards for residential and nonresidential buildings.

ELECTRIC EQUIPMENT OR APPLIANCE means one or more devices that use electric energy to serve the needs for heating and cooling, water heating, cooking, and electric vehicle charging. In addition, ancillary equipment such as an electric panel, photovoltaic equip ment, and energy storage systems that are deployed to support such devices shall be considered Electric Equipment or Appliance.

ELECTRIC HEATING APPLIANCE is a device that produces heat energy to create a warm environment by the application of electric po wer to resistance elements, refrigerant compressors, or dissimilar material junctions, as defined in the California Mechanical Code.

NET FREE AREA (NFA) is the total unobstructed area of the air gaps between louver and grille slats in a vent through which air can pass. The narrowest distance between two slats, perpendicular to the surface of both slats is the air gap height. The narrowest width of the gap is the air gap width. The NFA is the air gap height multiplied by the air gap width multiplied by the total number of air gaps between slats in the vent.

SUBSTANTIAL REMODEL (or “50‐50‐50” RULE) is any project or projects that affects the removal or replacement of 50% or more of the linear length of the existing exterior walls of the building, and/or 50% or more of the linear length of the existing exterior wall plate height is raised, and/or 50% or more of the existing roof framing area is removed or replaced, over a 3‐year period.

Any permit(s) applied for will trigger a review of a 3‐year history of the project. This review will result in determining if a substantial remodel has occurred.

The Chief Building Official or designee shall make the final determination regarding the application if a conflict occurs.

16.17.070 Section 110.10 MANDATORY REQUIREMENTS FOR SOLAR READY BUILDINGS Section 110.10 of Subchapter 2 of the California Energy Code is amended by adding Section 110.10 (f) to read:

(f) Existing tree canopies. In the event of a conflict between the provisions of this Code, the Solar Shade Act of 2009, and the Palo Alto Tree Ordinance (Chapter 8.10), the most protective of existing tree canopies shall prevail.

16.17.080 SUBCHAPTER 4 NONRESIDENTIAL AND HOTEL/MOTEL OCCUPANCIES –

MANDATORY REQUIREMENTS FOR LIGHTIN G SYSTEMS AND EQUIPMENT, AND

ELECTRICAL POWER DISTRIBUTION SYSTEMS

SECTION 130.0 LIGHTING SYSTEMS AND EQUIPMENT, AND ELECTRICAL POWER DISTRIBUTION SYSTEMS – GENERAL.

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Section 130.0 (a) of Subchapter 4 of the California Energy Code is amended to read:

(a) The design and installation of all lighting systems and equipment in nonresidential and hotel/motel buildings, outdoor lighting, and electrical power distribution systems within the scope of Section 100.0(a), shall comply with the applicable provisions of Sections 130.0 through 130.6.

NOTE: The requirements of Sections 130.0 through 130.6 apply to newly constructed buildings and substantial remodels. Section 141.0 specifies which requirements of Sections 130.0 through 130.6 also apply to additions and alterations to existing buildings.

16.17.090 SECTION 130.6 ELECTRIC READINESS REQUIREMENTS FOR SYSTEMS USING GAS OR

PROPANE
Subchapter 4 of the California Energy Code is amended to add Section 130.6 to be numbered, entitled, and to read:
130.6 ELECTRIC READINESS REQUIREMENTS FOR SYSTEMS USING GAS OR PROPANE Where nonresidential systems using gas or propane are installed, the construction drawings shall indicate electrical infrastructure and physical space accommodating the future installation of an electric appliance in the following ways, as certified by a registered design professional or licensed electrical contractor.
a) Branch circuit wiring, electrically isolated and designed to serve all electric heating appliances in accordanc e with manufacturer requirements and the California Electrical Code, including the appropriate voltage, phase, minimum amperage, and an electrical receptacle or junction box within five feet of the appliance that is accessible with no obstructions. Appropriately sized conduit may be installed in lieu of conductors; and b) Labeling of both ends of the unused conductors or conduit shall be with “For Future Electrical Appliance”; and
c) Reserved circuit breakers in the electrical panel for each branch circuit, appropriately labeled (e.g. “Reserved for Future Electric Range”), and positioned on the opposite end of the panel supply conductor connection; and
d) Connected subpanels, panelboards, switchboards, busbars, and transformers shall be sized to serve the future electric heating appliances. The electrical capacity requirements shall be adjusted for demand factors in accordance with the California Electrical Code ; and
e) Physical space for future electric appliances, including equipment footprint, and if needed a pathway reserved for routing of ductwork to heat pump evaporator(s), shall be depicted on the construction drawings. The footprint necessary for future electric appliances may overlap with non‐structural partitions and with the location of currently designed combustion equipment.

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16.17.100 SUBCHAPTER 5 NONRESIDENTIAL AND HOTEL/MOTEL OCCUPANCIES —

PERFORMANCE AND PRESCRIPTIVE COMPLIANCE APPROACHES FOR ACHIEVING

EFFICIENCY

SECTION 140.0 PERFORMANCE AND PRESCRIPTIVE COMPLIANCE APPROACHES Section 140.0 of Subchapter 5 of the California Energy Code is amended to read:

Nonresidential and hotel/motel buildings shall comply with all of the following:
a) The requirements of Sections 100.0 through 110.12 applicable to the building project (mandatory measures for all buildings).
b) The requirements of Sections 120.0 through 130. 6 (mandatory measures for nonresidential and high‐rise residential and hotel/motel buildings). c) Either the performance compliance approach (energy budgets) specified in Section 140.1 or the prescriptive compliance approach specified in Section 140.2 for the Climate Zone in which the building will be located. Climate zones are shown in FIGURE 100.1‐A.

NOTE to Section 140.0(c): The Commission periodically updates, publishes, and makes available to interested persons and local enforcement agencies precise descriptions of the Climate Zones, which is available by zip code boundaries depicted in the Reference Joint Appendices along with a list of the communities in each zone.

16.17.110 SECTION 140.1 PERFORMANCE APPROACH: ENERGY BUDGETS Section 140.1 of Subchapter 5 of the California Energy Code is amended to read:

Sections 140.1 (a) – (c) are adopted without modification.

A newly constructed building or substantial remodel complies with the performance approach provided that:

1. The time‐dependent valuation (TDV) energy budget calculated for the Proposed Design Building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a), and

2. The source energy budget calculated for the proposed design building under Subsection (b) has a source energy compliance margin, relative to the energy budget calculated for the standard design building under Subsection (a), of at least the value specified for the corresponding occupancy type in Table 140.1‐A below.

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TABLE 140.1‐A NONRESIDENTIAL BUILDING SOURCE ENERGY COMPLIANCE MARGINS

Occupancy Type Source Energy Compliance Margins
Office/Mercantile 10%
Hotel/Motel 7%
Restaurants 12%
Industrial/ Manufacturing 0%
All other Nonresidential Occupancies 9%

Exception 1 to Section 140.1 Item 2: A source energy compliance margin of 0 percent or greater is required when nonresidential occupancies are designed with single zone space‐conditioning systems complying with Section 140.4(a)2.

3. Certificate of Compliance. The Certificate of Compliance shall be prepared and signed by a Certified Energy Analyst and the energy budget for the Proposed Design shall be no greater than the Standard Design Building.

16.17.120 SUBCHAPTER 7 SINGLE‐FAMILY RESIDENTIAL BUILDING – MANDATORY FEATURES

AND DEVICES
Section 150.0 MANDATORY FEATURES AND DEVICES
Section 150.0 of Subchapter 7 of the California Energy Code is amended to read:

Single‐family residential buildings shall comply with the applicable requirements of Sections 150(a) through 150.0(v).

NOTE: The requirements of Sections 150.0 (a) through (v) apply to newly constructed buildings and substantial remodels. Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(r) also apply to additions or alterations. The electric readiness requirements of Sections 150.0 (n), (t), (u) and (v) apply to residential remodels or additions when the applicable system is included in the remodel.

Subsections 150.0 (a) – (s) are adopted without modification.

(t) Heat pump space heater ready. Systems using gas or propane furnace to serve individual dwelling units shall include the following:

1. A dedicated 240 volt branch circuit wiring shall be installed within 3 feet from the furnace and accessible to the furnace with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum. The blank cover shall Item 23
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be identified as “240V ready.” All electrical components shall be installed in accordance with the California Electrical Code.

2. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as “For Future 240V use.”

3. A designated exterior location for a future heat pump compressor unit.

Subsections 150.0 (u) – (v) are adopted without modification.

16.17.130 SUBCHAPTER 8 SINGLE‐FAMILY RESIDENTIAL BUILDINGS – PERFORMANCE AND

PRESCRIPTIVE COMPLIANCE APPROACHES

SECTION 150.1 PERFORMANCE AND PRESCRIPTIVE COMPLIANCE APPROACHES FOR SINGLE‐

FAMILY RESIDENTIAL BUILDINGS

Section 150.1 of Subchapter 8 of the California Energy Code is amended to read:

Section (a) is adopted without modification.
(b) Performance Standards. A building complies with the performance standards if the energy consumption calculated for the proposed design building is no greater than the energy budget calculated for the standard design building using Commission‐certified compliance software as specified by the Alternative Calculation Methods Approval Manual, as specified in sub‐sections 1, 2 and 3 below.

1. Newly Constructed Buildings and substantial remodels. The Energy Budget for newly constructed buildings is expressed in terms of the Energy Design Ratings, which are based on source energy and time‐dependent valuation (TDV) energy.

The Energy Design Rating 1 (EDR1) is based on source energy. The Energy Design Rating 2 (EDR2) is based on T DV energy and has two components, the Energy Efficiency Design Rating, and the Solar Electric Generation and Demand Flexibility Design Rating. The total Energy Design Rating shall account for both the Energy Efficiency Design Rating and the Solar Electric Generation and Demand Flexibility Design Rating. The proposed building shall separately comply with the Source Energy Design Rating, Energy Efficiency Design Rating and the Total Energy Design Rating.

A building complies with the performance approach if the TDV energy budget calculated for the proposed design building is no greater than the TDV energy budget calculated for the Standard Design Building AND Source Energy compliance margin of at least 8 points, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.

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system, or other renewable electric generation system, and/or community shared battery storage system, which provides dedicated power, utility energy reduction credits, or payments for energy bill reductions, to the permitted building and is approved by the Energy Commission as specified in Title 24, Part 1, S ection 10‐ 115, may offset part or all of the solar electric generation system Energy Design Rating required to comply with the Standards, as calculated according to methods established by the Commission in the Residential ACM Reference Manual.

Exception 2 to Section 150.1(b)1. A newly constructed building that does not require a PV system in accordance with Section 150.1(c)14 needs a Source Energy compliance margin of at least 2 points, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.

2. Additions and Alterations to Existing Buildings. The Energy Budget for additions and alterations is expressed in terms of TDV energy.

3. Compliance demonstration requirements for performance standards.

Section 150.1 (b) 3A of Subchapter 8 of the California Energy Code amended to add subsection i:
i. Certificate of Compliance. The Certificate of Compliance is prepared and signed by a Certified Energy Analyst and the Total Energy Design Rating of the Proposed Design shall be no greater than the Standard Design Building.

Section (c) is adopted without modification.

16.17.140 SUBCHAPTER 10 MULTIFAMILY BUILDINGS — MANDATORY REQUIREMENTS SECTION 160.4 MANDATORY REQUIREMENTS FOR WATER HEATING SYSTEMS Section 160.4 (a) of Subchapter 10 of the California Energy Code is deleted:

Sections (b)
– (f) are adopted without amendments.

16.17.150 SECTION 160.9 MANDATORY REQUIREMENTS FOR ELECTRIC READY BUILDINGS Section 160.9 of Subchapter 10 of the California Energy Code is amended to read:

Mandatory requirements for electric‐ready buildings apply to newly constructed buildings and substantial remodels.

Section 160.9 Sections (a) – (c) are adopted without amendments.

Sections (d) ‐ (f) are added to read:
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include the following components:

1. A dedicated 125 volt, 20 amp electrical receptacle that is connected to the electric panel with a 120/240 volt 3 conductor, copper branch circuit rated to 30 amps, within 3 feet from the water heater and accessible to the water heater with no obstructions. In addition, all of the following:

A. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated; and
B. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in A above and labeled with the words “Future 240V Use”;
All electrical components shall be installed in accordance with the Califor nia Electrical Code.

2. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance, All plumbing components shall be installed in accordance with the California Plumbing Code.

3. The construction drawings shall indicate the location of the future heat pump water heater. The reserved location shall have minimum interior dimensions of 39”x39”x96”,

4. A ventilation method meeting one of the following:

A. The location reserved for the future heat pump water heater shall have a minimum volume of 700 cu. ft.,
B. The location reserved for the future heat pump water heater shall vent to a communicating space in the same pressure boundary via permanent openings with a minimum total net free area of 250 sq. in., so that the total combined volume connected via permanent openings is 700 cu. ft. or larger. The permanent openings shall be:
i. Fully louvered doors with fixed louvers consisting of a single layer of fixed flat slats; or
ii. Two permanent fixed openings, consisting of a single layer of fixed flat slat louvers or grilles, one commencing within 12 inches from the top of the enclosure and one commencing within 12 inches from the bottom of the enclosure.

C. The location reserved for the future heat pump water heater shall include two 8” capped ducts, venting to the building exterior.
i. All ducts connections and building penetrations shall be sealed. ii. Exhaust air ducts and all ducts which cross pressure boundaries shall be insulated to a minimum insulation level of R‐6.

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iii. Airflow from termination points shall be diverted away from each other.

All mechanical components shall be installed in accordance with the California Mechanical Code.

(e) Central Heat Pump Water Heater Electric Ready. Water heating systems using gas or propane to serve multiple dwelling units shall meet the requirements of 160.9(f) and include the following for the future heat pump:

1. The system input capacity of the gas or propane water heating system shall be determined as the sum of the input gas or propane capacity of all water heating devices associated with each gas or propane water heating system.

2. Space reserved shall include:

A. Heat Pump. The minimum space reserved shall include space for service clearances, air flow clearances, and keep outs and shall meet one of the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum sp ace reserved for the heat pump shall be 2.0 square feet per input 10,000 Btu/ HR of the gas or propane water heating system, and the minimum linear dimension of the space reserved shall be 48 linear inches.
ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum space reserved for the heat pump shall be 3.6 square feet per input 10,000 Btu/ HR of the gas or propane water heating system, and the minimum linear dimension of the space reserved shall be 84 linear inches. iii. The space reserved shall be the space required for a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.

B. Tanks. The minimum space reserved shall include space for service clearances and keep outs and shall meet one of the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum space reserved for the storage and temperature maintenance tanks shall be 4.4 square feet per input 10,000 BTU/HR. of the gas or propane water heating system. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum physical space reserved for the storage and temperature maintenance tanks shall be

3.1 square feet per input 10,000 BTU/HR. of the gas or propane water heating system.

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iii. The space reserved shall be the space required for a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.

3. Ventilation shall be provided by meeting one of the following:

A. Physical space reserved for the heat pump shall be located outside, or B. A pathway shall be reserved for future routing of supply and exhaust air via ductwork from the reserved heat pump location to an appropriate outdoor location. Penetrations through the building envelope for louvers and ducts shall be planned and identified for future use. The reserved pathway and penetrations through the building envelope shall be sized to meet one of the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum air flow rate shall be 70 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed 0.17” when the future heat pump water heater is installed. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum air flow rate shall be 420 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed 0.17” when the future heat pump water heater is installed.
iii. The reserved pathway and penetrations shall be sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.

All mechanical components shall be installed in accordance with the California Mechanical Code.

4. Condensate drainage piping. An approved receptacle that is sized in accordance with the California Plumbing Code to receive the condensate drainage shall be installed within 3 feet of the reserved heat pump l ocation, or piping shall be installed from within 3 feet of the reserved heat pump location to an approved discharge location that is sized in accordance with the California Plumbing Code, and meets one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, condensate drainage shall be sized for 0.2 tons of refrigeration capacity per input 10,000 BTU/HR.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, condensate drainage shall be sized for Item 23
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0.7 tons of refrigeration capacity per input 10,000 BTU/HR.

C. Condensate drainage shall be sized to serve a heat pump water heate r system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.

All plumbing components shall be installed in accordance with the California Plumbing Code.

5. Electrical
A. Physical space shall be reserved on the bus system of the main switchboard or on the bus system of a distribution board to serve the future heat pump water heater system including the heat pump and temperature maintenance tanks. In addition, the physical space reserved shall be capable of providing adequate power to the future heat pump water heater as follows:
i. Heat Pump. For the Heat Pump, the physical space reserved shall comply with one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 0.1 kVA per input 10,000 BTU/HR.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 1.1 kVA per input 10,000 Btu/HR.

C. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system that meets the total building hot water demand as calculated and
documented by the responsible person associated with the project.

All electric components shall be installed in accordance with the California Electrical Code.
ii. Temperature Maintenance Tank. For the Temperature Maintenance Tank, the physical space reserved shall comply with one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 1.0 kVA per input 10,000 BTU/HR.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 0.6 kVA per input 10,000 BTU/HR.

C. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system

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that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.
(f) The building electrical system shall be sized to meet the future electric requirements of the electric ready equipment specified i n sections 160.9 (a) ‐ (e). To meet this requirement the building main service conduit, the electrical system to the point specified in each subsection, and any on‐site distribution transformers shall have sufficient capacity to supply full rated amperage at each electric ready appliance in accordance with the California Electric Code.

16.17.160 SUBCHAPTER 11 MULTIFAMILY BUILDINGS — PERFORMANCE AND PRESCRIPTIVE

COMPLIANCE APPROACHES

SECTION 170.1 PERFORMANCE APPROACH

Section 170.1 of Subchapter 11 of the California Energy Code is amended to read:

Subsections 170.1 (a) – (c) are adopted without modification.

A newly constructed building or substantial remodel complies with the performance approach if the TDV energy budget calculated for the proposed des ign building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a). Additionally,

1. Low‐Rise Multifamily: The energy budget, expressed in terms of source energy, of a newly constructed low‐rise multifamily building (less than four habitable stories) shall be at least 9% lower than that of the Standard Design Building.

2. High‐Rise Multifamily: Newly Constructed high‐rise multifamily buildings (greater than four habitable stories) shall be at least 1% lower than that of the Standard Design Building.

3. Compliance demonstration requirements for performance standards. Section 170.1(d)1 is modified to add subsection is as follows:
i. Certificate of Compliance. The Certificate of Compliance is prepared and signed by a Certified Energy Analyst and the Total Energy Design Rating of the Proposed Design shall be no greater than the Standard Design Building.

16.17.170
Infeasibility Exemption.

(a) Exemption. If an applicant for a Covered Project believes that circumstances exist that makes it infeasible to meet the requirements of this Ch apter, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the Applicant to show infeasibility.

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(b) Application. If an applicant for a Covered Project believes such circumstances exist, the applicant may apply for an exemption at the time of application submittal in accordance with the Planning and Development Services administrative guidelines. The applicant shall indicate the maximum threshold of compliance the energy compliance design professional believes is feasible for the covered project and the circumstances that make it infeasible to fully comply with this Chapter. Circumstances that constitute infeasibility include, but are not limited to the following:
(1) There is conflict with the compatibility of the currently adopted California Building Standards Code;
(2) There is a lack of commercially available materials and technologies to comply with the requirements of this Chapter;
Applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.

(c) Granting of Exemption. If the Director of Planning and Development Services, or designee, determines that it is infeasible for the applicant to fully meet the requirements of this Chapter based on the information provided, the Director, or designee, shall determine the maximum feasible threshold of compliance reasonably achievable for the project. The decision of the Director, or designee, shall be provided to the applicant in writing. If an exemption is granted, the applicant shall be required to comply with this Chapter in all other respects and shall be required to achieve, in accordance with this Chapter, the threshold of compliance determined to be achievable by the Director or designee.
(d) Denial of Exemption. If the Director of Planning and Development Services or designee determines that it is reasonably possible for the applicant to fully meet the requirements of this Chapter, the request shall be denied, and the Director or designee shall so notify the applicant in writing. The project and compliance documentation shall be modified to comply with this Chapter prior to further review of any pending planning or building application.
(e) Council Review of Exemption. For any covered project that requires review and action by the City Council, the Council shall act to grant or deny the exemption, based on the criteria outlined above, after recommendation by the Director of Planning and Development Services.

16.17.180 Appeal.
(a) Any aggrieved Applicant may appeal the determination of the Director of Planning and Development Services or designee regarding the granting or denial of an exemption pursuant to 16.17.170.
(b) Any appeal must be filed in writing with the Planning and Development Services Item 23
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Department not later than fourteen (14) days after the date of the determination by the Director. The appeal shall state the alleged error or reason for the appeal. (c) The appeal shall be processed and considered by the City Council in accordance with the provisions of Section 18.77.070 (f) of the City of Palo Alto Municipal Code.

SECTION 3. The Council adopts the findings for local amendments to the California Green Building Standards Code, 2022 Edition, attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 5. The Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment and Section 15308, because the amendments herein adopted is an action taken by the City to assure the maintenance, restoration, enhancement, or protection of the environment .

//
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SECTION 6. This Ordinance shall be effective on the thirty‐first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Chief Assistant City Attorney City Manager

Director of Planning and
Development Services

Director of Administrative Services
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Exhibit A
FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA ENERGY CODE, 2022 EDITION TITLE 24, PART 6

Regarding the Energy Code, local jurisdictions have the authority to adopt local energy efficiency ordinances—or reach codes—that exceed the minimum standards defined by Title 24 (as established by Public Resources Code Section 25402.1(h)2 and Section 10‐106 of the Building Energy Efficiency Standards, provided the City Council finds that the requirements of the proposed ordinance are cost‐effective and do not result in buildings consuming more energy than is permitted by Title 24.

Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970 and have been carried through from year to year without significant change, need no required findings. Also , amendments to provisions not regulating buildings used for human habitation do not require findings.

Code: California Energy Code, Title 24, Part 6
Chapter(s),
Sections(s),
Appendices
Title Add Deleted Amended Justification
(See below of keys)
100.1 Definitions and Rules of Construction  C & E
110.10 (f) Existing tree canopies
130.0 Lighting Systems and Equipment, and
Electrical Power Distribution Systems ‐
General
 C & E
130.6 Electric Readiness Requirements for
Systems Using Gas or Propane
  C & E
140.0 Performance and Prescriptive Compliance
Approaches
 C & E
140.1 Performance Approach: Energy Budgets  C & E
150.0 Mandatory Features and Devices  C & E
150.1 Performance and Prescriptive Compliance
Approaches for Single‐Family Residential
Buildings
 C & E
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150.1 (b)
3A i
Certificate of Compliance 
160.4 (a) Mandatory Requirements for Water
Heating Systems
 C & E
160.9 Mandatory Requirements for Electric Ready
Buildings
 C & E
170.1 Performance Approach  C & E
Infeasibility Exemption  A
Appeal  A
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Key to Justification for Amendments to Title 24 of the California Code of Regulations

C T his amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Energy Code is required. Failure to address and significantly reduce greenhouse gas (GHG) emissions could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses, public facilities, and Highway 101 (Bayshore Freeway), particularly the mapped Flood Hazard areas of the City. Energy efficiency is a key component in reducing GHG emissions, and the construction of more energy efficient buildings can help Palo Alto reduce its share of the GHG emissions that contribute to climate change. The burning of fossil fuels used in the generation of electric power and heating of buildings contributes to climate change, which could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses 1 public facilities, and Highway 101. Due to a decrease in annual rainfall, Palo Alto experiences the effect of drought and water saving more than some other communities in California.

E Energy efficiency enhances the public health and welfare by promoting the environmental and economic health of the City through the design, construction, maintenance, operation, and deconstruction of buildings and sites by incorporating green practices into all development. The provisions in this Chapter are designed to achieve the following goals:
(a) Increase energy efficiency in buildings;
(b) Increase resource conservation;
(c) Provide durable buildings that are efficient and economical to own and operate; (d) Promote the health and productivity of residents, workers, and visitors to the city; (e) Recognize and conserve the energy embodied in existing buildings; and (f) Reduce disturbance of natural ecosystems.

G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazards caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is the Hayward Fault. This fault is about 74 mi long, situated Item 23
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mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area that includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency.

Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Codes is warranted.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 17, 2024
Staff Report: 2403-2713
TITLE
Adoption of a Resolution Approving an Initial Study/Mitigated Negative Declaration for Citywide Implementation of Fiber-to-the-Premises Project (FTTP), Including the Mitigation, Monitoring and Reporting Program; Approval of Purchase Order No. 4524000496 With Thermo Bond Buildings in an Amount Not to Exceed of $339,076 for the Design, Build and Delivery of a Modular Building “Fiber Hut“; Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders in the Amount Not-to-Exceed of $31,384 for Related Additional but Unforeseen Work That may Develop During the Project, for a Total Not-to-Exceed Amount of $370,460 with Thermo Bond Buildings.

RECOMMENDATION
Staff recommends that Council take the following actions regarding Fiber-to-the-Premises (FTTP) Capital Improvement Project (CIP) (FO-24000):
1) Adopt the Resolution (Attachment A) Approving the Final Initial Study/Mitigated Negative Declaration for the Fiber to the Premises Project, ( SCH # 2024050007 1), Including the Mitigation, Monitoring and Reporting Plan (Attachment B) 2) Approve and Authorize the City Manager or their designee to execute Purchase Order No. 4524000496 with Thermo Bond Buildings (Attachment C) in the amount of $339,076 for design, build, and delivery of a Modular Building “Fiber Hut" Including Ancillary Equipment to House Fiber Networking Equipment and to Serve as an Aggregation Site for FTTP; and
3) Authorize the City Manager or their designee to negotiate and execute one or more change orders to the purchase order with Thermo Bond Buildings for related additional but unforeseen work which may develop during the project in the amount of $31,384; for a total not-to-exceed contract amount of $370,460.
1 SCH # 2024050007 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/communications- office/palo-alto-fiber/mnd-final-docs/final-initial-study-mitigated-negative-declaration.pdf Item 24
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EXECUTIVE SUMMARY
The COVID-19 pandemic emphasized the need for reliable, high-speed, and affordable internet, which is addressed by the Fiber-to-the-Premises “FTTP” Project (FO-24000). Through the FTTP project, the City will provide broadband high-speed internet directly to Palo Alto homes and businesses.

The City, acting as the lead agency, prepared an Initial Study/Mitigated Negative Declaration for citywide implementation of the FTTP Project. The IS/MND evaluates the complete buildout of all phases of the project, and includes a Mitigation Monitoring and Reporting Plan to reduce the environmental impacts associated with the Project to a less than significant level. However, the project will be built out in phases, and to date, Council has authorized only the Phase 1 buildout which includes the pilot area. Staff will return to Council for approval of each phase.

At this time, staff is seeking approval of a purchase order for the design, build, and delivery of a fiber hut. The modular building, the “fiber hut”, will be critical to the fiber infrastructure, housing essential fiber equipment for FTTP and serving as a local aggregation site. The fiber hut will be built to City’s specifications measuring approximately 11 feet wide by 20 feet long by 10 feet high and will be located at the Colorado Substation. The fiber hut will have an air-conditioning unit mounted on the side of the hut, a fiber-optic cable underground access vault, and a backup generator. Staff is also seeing authorization for change order funding in the event related additional but unforeseen work develops.

BACKGROUND
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to implement the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project. In Phase 1, FTTP would be built out in selected areas of the city, and expanded gradually ( Staff Report ID 148002). Construction of the new fiber backbone in the Fiber Rebuild project and last mile infrastructure to provide FTTP broadband internet to the community in the FTTP project will be a significant undertaking for the City.

On June 19, 2023, Council approved the FY 2024 CIP Budget with both the new FTTP project, and Grid Modernization for Electrification Project. The approval of the electrification project accelerated efforts to align electrification and fiber construction, which impacted the Fiber Expansion Plan. Staff was directed to explore opportunities to align the grid modernization project and projects under the Fiber Expansion Plan to help minimize utility engineering pole make-ready work, pole replacements, noise disruption, and construction activity in neighborhoods.
2 Staff Report ID 14800 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/2022/12-19-2022-id-14800.pdf Item 24
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On December 18, 2023 3, to execute on Council’s direction, staff informed Council that a pilot would be deployed to evaluate how alignment of fiber and grid modernization projects may help control project costs, minimize construction impacts to the community, and prevent major delays. Activities essential to the roll-out of the pilot were highlighted as well, such as the California Environmental Quality Act (CEQA) determination and purchase of a fiber hut.

ANALYSIS
Fiber-to-the-Premises consists of the construction of a fiber optic backbone and fiber distribution infrastructure to provide communication services throughout the City of Palo Alto. FTTP would provide municipal high-speed internet service to residences and businesses in Palo Alto.

The proposed project includes the following main components:

1. Installation of approximately 194 miles of fiber optic cables (consisting of about 90 miles of below-ground installation and 104 miles of aerial installation using existing utility poles);

2. Installation of approximately two local aggregation sites either inside modular communications shelters (i.e., fiber huts) or enclosed within existing commercial buildings;

3. Installation of approximately 4,200 underground utility vaults and 147 aboveground utility cabinets; and,

4. Fiber internet connections directly to subscribing customers’ homes and/or businesses (“subscribers”).

The fiber hut is a critical element of the FTTP network design because it serves as the local aggregation site for up to 15,000 customers. A fiber hut is usually a modular building (approximately 11’W x 20’L x 10’H) containing communications equipment, racks, power, fire suppression, and fiber terminations that connects to fiber distribution cabinets throughout the neighborhoods. Huts may also contain backup generators and HVAC systems to maintain equipment within its operating environmental specifications, and equipment for electrical needs.

The Colorado substation was selected as an ideal location due to its proximity to the area it serves and its current use for utilities.

Fiber hut vendors are specialized to design and install these modular buildings customized to the needs of the fiber network design. As a result, the City works closely with the vendor on the requirements and hut designs are finalized upon vendor selection.

Procurement Process
City staff posted a formal request for proposals on February 28, 2024 on the City of Palo Alto’s e- procurement website (OpenGov).
3 December 18, 2023 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/2023/12-11-2023-id-2309-2094.pdf Item 24
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Due to the limited number of suppliers and extended lead time (24 – 52 weeks), the City requested quotes for both new and refurbished fiber huts. The City received two (2) bids. Cell Site proposed a refurbished hut at a lower price (~$50k less) but staff had concerns about the durability of the hut due to its age (21 years), previous climate wear and tear, and limited warranty. Thermo Bond proposed a new hut based on the City’s specifications including the alternate bid items (DC power distribution system and AC inverter) which are required to provide power and air conditioning to the hut. Staff recommends the new fiber hut from Thermo Bond since the hut may potentially be in place for several decades to enable municipal fiber internet service up to 15,000 customers.

Entitlement Process
A minor architectural review application is required for the proposed hut. Once a design is developed, City of Palo Alto Utilities would submit a Minor Architectural Review application to Planning for staff review and the Director’s approval.

FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2024 Capital Improvement Plan budget for the Fiber-To-The-Premises “FTTP“ Capital Project (FO-24000). Additional services of $31,384 is requested for any unforeseen shipping and crane-off loading services which will depend on the carrier, location and site layout. The purchase order pricing is not currently guaranteed for these services. Any unused amount for additional services will be returned to the FTTP CIP project.

STAKEHOLDER ENGAGEMENT
Staff continues to engage with the community on the FTTP and Grid Modernization Projects primarily through the City’s Finance Committee and Utilities Advisory Commission discussions which are open to the public to participate and share feedback.

On November 7, 2023, the Finance Committee was updated on the Fiber Master Plan, which included the pilot program area to align FTTP with the Electric grid modernization project. The Finance Committee provided feedback on timeline, costs, and alignment of FTTP to grid modernization (Staff Report #2309-20824). In addition, staff continues to share updates through the Palo Alto Fiber project webpage 5, City communications channels such as social media 6, Medium.com blog7 and interactive Palo Alto Fiber Hub8.

4 Finance Committee staff report 2309-2082, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/2023/11-7-2023_2309-2082-mini-packet.pdf 5 Palo Alto Fiber Webpage, https://www.cityofpaloalto.org/paloaltofiber 6 City Social Media Channels, https://www.cityofpaloalto.org/connect 7 Palo Alto Connect, https://medium.com/@paloaltoconnect 8 Palo Alto Fiber Hub, https://fiber-palo-alto.hub.arcgis.com/ Item 24
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ENVIRONMENTAL REVIEW
The FTTP Project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. An Initial Study-Mitigated Negative Declaration has been prepared and was circulated for a 30-day public review beginning on May 1, 2024, and ending on May 31, 2024. A final IS/MND that incorporated revisions, as appropriate, based on public comments was published on June 6, 2024. The analysis in the IS/MND includes evaluation of the fiber hut.

The IS/MND concludes that no significant and unavoidable impacts are anticipated for the proposed project. Mitigation is incorporated to mitigate potential impacts on air quality, biological resources, cultural resources, geology and soils, hazards and hazardous materials, hydrology and water quality, Transportation, and tribal cultural resources to a less than significant level as detailed in the Resolution in Attachment A and the related Mitigation Monitoring and Reporting Plan (MMRP) (Attachment B).

The City received five comments letters on the proposed project during the MND circulation period. These comments were from one member of the public and four responsible agencies for the proposed project: Caltrans, Valley Water, Santa Clara County, and California Department of Fish and Wildlife (CDFW). Comments from the member of the public were not related to the environmental analysis. Comments from the responsible agencies primarily indicated the permits that would be required for work in certain areas for which they have jurisdiction. Comments from CDFW recommended additional measures for the protection of Crotch’s Bumble Bee, California Ridgeway’s Rail and Black Rail. While the City concluded that impacts on these species would be less than significant, the city has agreed to implement these additional measures to further reduce impacts on those species. This is detailed further in the Final MND. An e-mail has been sent to each commenter responding to their comments and, where applicable, indicating where their comments have been addressed in the Final MND. A link to the Final IS/MND and MMRP are included in the City of Palo Alto Fiber webpage9

ATTACHMENTS
Attachment A: Resolution Approving the IS/MND for the FTTP Project Attachment B: Mitigation Monitoring and Reporting Plan
Attachment C: Purchase Order 4524000496 with Thermo Bond Buildings APPROVED BY:

Dean Batchelor, Director of Utilities
Staff: Dave Yuan, Strategic Business Manager
9City of Palo Alto Fiber Webpage, https://www.cityofpaloalto.org/paloaltofiber Item 24
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*NOT YET APPROVED* Attachment A
027060524 1
Resolution No.

Resolution of the Council of the City of Palo Alto Adopting the Fiber to the Premises Project Mitigated Negative Declaration for which an Initial Study was Prepared, in accordance with the California Environmental Quality Act and Adopting a Related Mitigation, Monitoring and Reporting Program

R E C I T A L S

A. Prior to the adoption of this Resolution, the City of Palo Alto prepared an Initial Study and approved for circulation a Mitigated Negative Declaration for the Fiber to the Premises Project, (the “Initial Study/Mitigated Negative Declaration”) all in accordance with the requirements of the California Environmental Quality Act of 1970, together with state and local guidelines implementing said Act, all as amended to date (collectively “CEQA”).

B. The Fiber to the Premises Project analyzed under the Initial Study/Mitigated Negative Declaration would involve the installation of approximately 194 miles of fiber optic cables, both below ground and aerial, installation of approximately 4200 underground utility vaults and 147 aboveground utility cabinets, and installation of approximately two local aggregation sties either inside modular communication shelters (“fiber huts”) or enclosed within existing commercial buildings. A more detailed description of the Project is set forth in the Initial Study/Mitigated Negative Declaration.

C. The draft Initial Study/Mitigated Negative Declaration was made available for public comment from May 1, 2024 through May 31, 2024.

D. The City of Palo Alto considered the comments received during the public review period and prepared a final Initial Study/Mitigated Negative Declaration, published June 6, 2024.

E. The Initial Study/Mitigated Negative Declaration concluded that implementation of the Project could result in a number of significant effects on the environment and identified mitigation measures that would reduce each of those significant effects to a less-than-significant level.

F. In connection with the approval of a project involving the preparation of an initial study/mitigated negative declaration that identifies one or more significant environmental effects, CEQA requires the decision-making body of the lead agency to incorporate feasible mitigation measures that would reduce those significant environmental effects to a less-than- significant level.

G. Whenever a lead agency approves a project requiring the implementation of measures to mitigate or avoid significant effects on the environment, CEQA also requires the lead agency to adopt a mitigation monitoring and reporting program to ensure compliance with the mitigation measures during project implementation, and such a mitigation monitoring and Item 24
Attachment A -
Resolution Adopting the
Fiber to the Premises
Project

Item 24: Staff Report
Pg.
6 Packet Pg. 455 of 946

*NOT YET APPROVED* Attachment A
027060524 2
reporting program has been prepared for the Project for consideration by the decision-making body of the City of Palo Alto as lead agency for the Project (the “Mitigation Monitoring and Reporting Program” or “MMRP”).

H. The City of Palo Alto is the lead agency on the Project, and the City Council is the decision-making body for the proposed approval of the Project.

I. The City Council has reviewed and considered the Initial Study/Mitigated Negative Declaration and related Mitigation Monitoring and Reporting Program for the Project, together with comments received on the Initial Study/Mitigated Negative Declaration, and intends to take actions on the Project in compliance with CEQA and state and local guidelines implementing CEQA.

J. The Initial Study/Mitigated Negative Declaration and related Mitigation Monitoring and Reporting Program for the Project are on file at the City of Palo Alto Development Center, 285 Hamilton Avenue -- Ground Floor Palo Alto, CA 94301, and are available for inspection by any interested person at that location, and are, by this reference, incorporated into this Resolution as if fully set forth herein.

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

SECTION 1. THE CITY COUNCIL does hereby make the following findings: (1) it has independently reviewed and analyzed the Initial Study/Mitigated Negative Declaration and other information in the record and has considered the information contained therein, prior to acting upon or approving the Project, (2) the Initial Study/Mitigated Negative Declaration prepared for the Project has been completed in compliance with CEQA and is consistent with state and local guidelines implementing CEQA, and (3) the Initial Study/Mitigated Negative Declaration represents the independent judgment and analysis of the City of Palo Alto, as lead agency for the Project. The City Council designates the Director of Planning and Development Services, at 250 Hamilton Avenue, 5th Floor, Palo Alto, CA 94301, as the custodian of documents and records of proceedings on which this decision is based.

//
Item 24
Attachment A -
Resolution Adopting the
Fiber to the Premises
Project

Item 24: Staff Report
Pg.
7 Packet Pg. 456 of 946

*NOT YET APPROVED* Attachment A
027060524 3
SECTION 2. THE CITY COUNCIL does hereby find that based upon the entire record of proceedings before it and all information received that there is no substantial evidence that the Project will have a significant effect on the environment and does hereby adopt the Mitigated Negative Declaration and related Mitigation Monitoring and Reporting Program prepared for the Project. The Initial Study/Mitigated Negative Declaration is available for viewing at City of Palo Alto Development Center, 285 Hamilton Avenue -- Ground Floor, Palo Alto, CA 94301.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager

_____________________________
Director of Planning and Development
Services

Director of Utilities

Item 24
Attachment A -
Resolution Adopting the
Fiber to the Premises
Project

Item 24: Staff Report
Pg.
8 Packet Pg. 457 of 946

ITIGATION
M

ONITORING
+

EPORTING
P
ROGRAM

PROJECT NAME

Fiber
-
to
-
the
-
Premises

Project

SCH

NUMBER

20240500
0 7

APPLICANT

City of Palo Alto Public Works
Utilities Division

250 Hamilton

Avenue

Palo Alto
, California 9
430
1 DATE

May 31, 2024

The
Initial Study
-

Mitigated Negative Declaration
(IS
-
MND)
for the
Fiber
-
to
-
the
-
Premises

Project
identif
ies

mitigation measures that will be implemented to reduce the

environmental

impacts
associated with the project.

California Environmental Quality Act
(CEQA) Section 21081.6 requires a public agency to adopt a monitoring and reporting program for assessing and ensuring compliance with any required mitigation measures applied to proposed development. As stated in section 21081.6(a)(1) of the Public Resour ces
Code
, “
... the public agency shall adopt a reporting or monitoring program for the changes made to the project or conditions of project approval, adopted in order to mitigate or avoid significant effects on the environment.
”

Section 21081.6 also provides general guidelines for implementing mitigation monitoring programs and indicates that specific reporting and/or monitoring requirements, to be enforced during project implementation, shall be defined as part of adopting a

Mitigated Negative Declaration
.

The mitigation monitoring table lists those mitigation measures that would be included as conditions of approval for the project. To ensure that the mitigation measures are properly implemented, a monitoring program has been devised which identifies the ti ming and responsibility for monitoring
each measure.

Item 24
Attachment B - Mitigation
Monitoring and Reporting
Plan

Item 24: Staff Report
Pg.
9 Packet Pg. 458 of 946

ITIGATION
M

ONITORING
+

EPORTING
P
ROGRAM

Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

A
IR
Q
UALITY

AIR
-
2a

As part of the City’s development approval process, the City shall require applicants for future development projects to
comply with the
current BAAQMD basic control measures for reducing construction emissions of PM
10 (Table 8
-
1, Basic Construction Mitigation Measures
Recommended for All Proposed Projects, of the BAAQMD CEQA Guidelines).

Applicant or
designee/

Construction
contractor

During
construction

C
ity of Palo Alto

Planning
Department

IOLOGICAL
R

ESOURCES

BIO
-
1 If project activities are within 200 feet of rail habitat (tidal and brackish marshes with unrestricted daily tidal flows) during the nesting season (February 1 to August 31), then pre
-
construction call back rail surveys
shall be required prior to initiati
on of project activities. If rails are
detected through surveys, then project activities shall not occur within 100 feet of an identified detection location. If the activity occurs where the project site is across a major channel or slough from the project

site
greater than 100 feet in distance the activity may continue. If bird activity is surveyed or discovered within the buffer limits immediate consultation with CDFW shall be required. If a rail is observed within the project area during project construc
tion or maintenance work shall be
stopped immediately by a qualified biologist and the rail species shall be allowed to leave the area on its own. If the rail species does not leave the area, then no work shall commence until CDFW has determin ed

how
to pro
ceed with work activities.

Examples of how CDFW may determine
work activities proceed include installation of a temporary noise barrier to reduce construction noise or postponing construction in the area until outside of the nesting season.

Daily monitoring surveys of project site
within 200 feet of rail habitat shall occur for rail until project construction is complete
.

Applicant or
designee/

Construction
contractor

Prior to and
during
construction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
10 Packet Pg. 459 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
3 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

BIO
-
2 Prior to initiating construction activities west of Interstate 280 that involve ground disturbance
off

existing roadway surfaces, sidewalks,
maintained lawns and landscaping, or existing utility pads, a qualified biologist or botanist shall conduct a
protocol
-
level
survey of the
proposed disturbance area to confirm the absence of special -
status
plant species. The survey shall cover the entire
area of ground
disturbance

and shall

occur when above ground plant material is evident
and when identifying features, such as flowers and fruit, are identifiable.

Multiple site visits during the survey season may be necessary to make observations during the appropriate phenological stage of all special
-
status plant species
.

Protocols for Surveying and Evaluating Impacts to
Special Status Native Plant Populations and Sensitive Natural Communities

(CDFW 2018) shall be used to develop appropriate
protocol
-
level surveys.

If special
-
status plant species are detected during
the survey, the biologist
or botanist shall establish a buffer around the
plant or plants in which no construction or ground disturbance shall occur. The buffer size or distance shall be at the discretion of the biologist or botanist
based upon review of site
-
specific conditions (e.g.
special
-
status plants located downstream or in lower elevational areas in relation to the impact loc
ation, special
-
status plants being down wind
of earth moving activities, and other conditions).

Prior
construction or

issuance of
construction
permits (whichever occurs first)

in the
applicable areas west of Interstate 280
, the biologist

or botanist

shall
submit a report indicating the results of the survey and designated buffer zones to the satisfaction of the
City of Palo Alto.

Additionally,
prior to construction or issuance of construction permits (whichever occurs first)
a review of protocol
-
level surve
y results shall be conducted
to establish appropriate compensatory mitigation ratios specific to each special
-
status plant species. Compensatory mitigation ratios shall be developed based on the biological factors specific to each species and should be suf
ficient to compensate for the loss of those species.

Compensatory mitigation ratios shall be approved by CDFW unless CDFW delegates approval to the City of Palo Alto.

Applicant or
designee/

Construction
contractor

Prior to

issuance of
construction
p
ermits

and
during
construction

C
ity of Palo Alto

Planning
Department

BIO
-
3 Prior to initiating construction activities west of Interstate 280 that involve ground disturbance off existing roadway surfaces, sidewalks, maintained lawns and landscaping, or existing utility pads, a

habitat
assessment shall be conducted by a qualified entomologist with
knowledge

the life history and ecological requirements of Crotch’s bumble bee (
Bombus crotchii
). The habitat assessment shall include
suitable nesting, overwintering, and foraging habitats within the project area. Potential nest habitat (February through October) could include that of other Bombus species such as bare ground, thatched grasses, Applicant or
designee/

Construction
contractor

Prior to

issuance of
construction
p
ermits

and
during
construction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
11 Packet Pg. 460 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
4 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

abandoned rodent burrows or bird nests, brush piles, rock piles, and fallen logs. Overwintering habitat (November through January) could include that of other Bombus species such as soft and disturbed soil or under leaf litter or other debris. The habitat
assessment shall be
conducted during peak bloom period for floral resources on which Crotch’s bumble bee feed, and shall be based on guidance provided within
Survey Considerations for California Endangered Species Act (CESA) Candidate Bumble Bee Species

(CDFW 2023).

If the habitat assessment identifies suitable nesting, foraging, or overwintering habitat within the work area, a qualified entomologist familiar with the species behavior and life history shall perform a minimum of three on
-
site surveys within the identif
ied habitat prior to
vegetation removal and/or grading to determine the presence/absence of Crotch bumble bees. Each survey shall ideally be spaced 2 -

to 4 weeks
apart during the Colony Active Period (April
-
–
August) (CDFW 2023).

Surveys shall occur during
the day (at least an hour after sunrise and at
least two hours before sunset, though ideally between 9:00 a.m. to -
1:00 p.m.) on warm, but not hot, sunny days (65 to 90 degrees Fahrenheit), with low wind (less than 8 miles per hour).

The
entomologist shall

take photos of bumble bees or bumble bee resources
observed

during the surveys and during the initial habitat assessment .

Where bumble bees have been identified by the qualified entomologist

during the
on
-
site surveys
, ground disturbing activities
shall

be restricted
to the period when bumble bees are active (during the flight period of listed bee species). No ground disturbance
shall

occur from November
1st to February 15th to accommodate the overwintering period.

If
Crotch’s bumble bee nests are observed on site or ‘take’ could occur, a 50 -
foot avoidance buffer shall be installed and CDFW shall be notified to determine next
steps for relocation and/or avoidance. If no Crotch
bumble bees are found during the multiple rounds of focused surveys, but the habitat assessment identified suitable nesting, foraging, or overwintering habitat within the work area, a biological monitor s hall be
onsite during vegetation removal or ground disturbing activities that take place during the Queen and Gyne Flight Period and Colony Active Period (April
—
August).

BIO
-
4 Prior to the issuance of tree removal, tree trimming, or other construction and activities or the issuance of project permits (whichever comes first), the project applicant shall schedule all construction activities to avoid the nesting season. The nesting

season for most birds,
including most raptors in the San Francisco Bay area, extends from February 1st through August 31st (inclusive). Construction activities Applicant or
designee/

Construction
contractor

Prior to
tree

and
ve
getation
removal of
issuance of
construction
permits
C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
12 Packet Pg. 461 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
5 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

include site disturbance such as, but not limited to, tree trimming or removal, trenching, boring, and drilling.

If construction activities cannot be scheduled between September 1st and January 31st (inclusive), pre
-
construction surveys for nesting birds
shall be completed by a qualified ornithologist or biologist to ensure that no active nests shall be disturbed dur
ing construction activities. This
survey shall be completed no more than 14 days prior to the initiation of construction activities during the early part of the breeding season (February 1st through April 30th inclusive) and no more than 30 days prior to t
he initiation of these activities during the late part of the breeding season (May 1st through August 31st inclusive). During this survey, the ornithologist/ biologist shall inspect all trees and other possible nesting habitats on
-
site and within 250 feet
of the site for
nests.

If an active nest is found within 250 feet of the project area to be disturbed by construction, the ornithologist/biologist, in consultation with the California Department of Fish and Wildlife, shall determine the extent of a construction free buffer zone
to be established around the
nest, (typically 250 feet for raptors and 100 feet for other birds), to ensure that raptor or migratory bird nests shall not be disturbed during project construction.

Prior to tree removal, or issuance of construction permits (whichever occurs first), the ornithologist/biologist shall submit a report indicating the results of the survey and designated buffer zones to the satisfaction of the City of Palo Alto.

(whichever
c
omes first)

Buffers, if
applicable
, to
continue
during
co
nstruction

through
nesting
season

BIO
-
5 Prior to the trimming or removal of trees, a bat survey shall be performed by a qualified biologist between March 1 and July 31. If bat roosts are identified, the bats shall be safely flushed from the sites where roosting habitat is planned to be removed p
rior to roosting
season (typically May to August) and prior to the onset of construction activities. If maternity roosts are identified during the maternity roosting season (typically May to September) they shall remain undisturbed until a qualified biolog
ist has determined the young bats are no longer
roosting. If roosting is found to occur onsite, replacement roost habitat (e.g., bat boxes) shall be provided to offset roosting sites removed. If no bat roosts are detected, then no further action is require d if the trees
are removed prior to the next breeding season. If removal is delayed, an additional survey shall be conducted 30 days prior to removal to ensure that a new colony has not established itself.

If impacts to roosts cannot be avoided or activities may cause roost abandonment, the bats shall be excluded from the roosting site before Applicant or
designee/

Construction
contractor

Prior to

trimming or
removing
trees

and
during
co
nstruction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
13 Packet Pg. 462 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
6 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

the roost is removed/impacted. Exclusionary materials, including, but not limited to, expandable foam and steel wool, shall be applied selectively and as needed until bats have relocated. Bats shall be excluded from the directly affected work areas prior t
o April 15 of the
construction year, and exclusionary devices shall be removed between August 31 and April 15. Exclusion shall occur at dusk to allow bats to exit during the darker hours.

BIO
-
6 If a
stream crossing cannot be avoided through colocation with existing infrastructure and requires the use of horizontal directional drilling, the following measures shall be incorporated into drilling procedures to avoid or reduce impacts to receiving waters
from bentonite release. In
addition, the project applicant shall obtain the necessary agency approvals for horizontal directional drilling activity, which may include additional controls/conditions.

1. Horizontal directional drilling staging areas and mud pits shall be located no closer than 20 feet to riparian zones, wetlands, creeks, and other surface waters.

2. A horizontal directional drilling foreman shall be present at all times during drilling operations, regardless of where the drilling occurs.

3. Geotechnical borings in the horizontal directional drilling affected areas shall be performed as part of the construction scope prior to the start of drilling operations. Geotechnical bore data shall provide information defining proper pipe depth as dictat
ed by the soil strata characterization.

4. All horizontal directional drilling operations for the proposed project shall be guided by a tracking system consistent with best industry practices. The alignment shall be surveyed on foot by a team of personnel. Temporary surveyor stakes shall be placed
strategically along the alignment to anchor the
tracker wires. The alignment shall be accessed throughout the drilling operation to monitor for bentonite mud loss.

5. The drill rig operator shall monitor the equipment for loss of drilling lubricant pressure and volume. Members of the drill crew shall also monitor the alignment of the drill and visually inspect for indications of mud loss.

6. The drill rig operator shall monitor the bore hole to keep it free from obstructions that would inhibit the return of drilling lubricant to the rig.

Applicant or
designee/

Construction
contractor

Prior to and
during
co
nstruction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
14 Packet Pg. 463 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
7 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

7. Unless drilling operations are within 1 hour of completion, drilling shall be limited to the operation times of dawn to 30 minutes prior to dusk.

ULTURAL
R

ESOURCES

CUL
-
1 An archaeological monitor having either a B.S. or B.A. in archaeology or related field with at least 1 year of field experience shall be present during ground disturbing within the work locations listed below. The monitor shall work under the direct superv
ision of a qualified
archaeologist having either a M.S. or MB.A. in archaeology or related field with at least 10 years of experience and demonstrated competence in archaeological research, fieldwork, reporting, and curation. The qualified archaeologist sh
all be on
-
site at the pre
-
construction meeting
to discuss monitoring protocols. The archaeological monitor shall be present full
-
time during ground disturbance within site locations listed below, including but not limited to grading, trenching, utilities, and off
-
site easements. If, after excavation begins, the qualified archaeologist determines that the sediments is not likely to produce archaeological resources, monitoring efforts shall be decreased. The monitor shall be empowered to temporarily halt or r
edirect grading efforts if
paleontological resources are discovered. In the event of an archaeological discovery the monitor shall flag the area and notify the construction crew immediately. No further disturbance in the flagged area shall occur until the
qualified archaeologist has cleared the area
and announced that construction can resume. In consultation with the qualified archaeologist, the monitor shall quickly assess the nature and significance of the find. If the specimen is not significant it shall

be
quickly mapped, documented, removed, and the area cleared. If the discovery is potentially significant the qualified archaeologist shall notify the construction crew and City of Palo Alto immediately. In consultation with the City the qualified archaeo
logist shall develop a plan of
mitigation which will likely include full
-
time monitoring, salvage
excavation, scientific removal of the find, removal of sediment from around the specimen (in the laboratory), research to identify and categorize the find, cu
ration of the find in a local qualified repository,
and preparation of a report summarizing the find. A Native American representative registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturall
y affiliated with the project area shall be invited to work alongside the qualified archaeologist and have the same powers as the qualified archaeologist.

Applicant or
designee/

Construction
contractor

Prior to and
d
uring
c
onstruction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
15 Packet Pg. 464 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
8 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

The above mitigation activities shall be applied during construction in the following areas:



Within the rights
-
of
-
ways and adjacent to the rights
-
of
-
ways of
West Charleston Avenue and Park Boulevard between West
Charleston Avenue and Edlee Avenue.



The area between Oregon Expressway south to Moreno
Avenue between Ross Road and Middlefield Road.



Within the right
-
of
-
way and adjacent to the right
-
of
-
way of
Bryant Street within one block north and south of its
intersection with University Avenue.



Within the right
-
of
-
way and adjacent to the right
-
of
-
way of
University Avenue within one block east and west of its intersection with Bryant Street.

If cultural resources are uncovered during construction anywhere in the project area, work shall be halted until the qualified archaeologist can assess the significance of the find and then apply the actions described in this mitigation measure, as applica
ble.

CUL
-
2 Prior to the initiation of any site preparation and/or start of construction, the City of
Palo Alto Public Works Utilities Division and/or
its construction contractor(s) shall ensure that all project construction workers receive training overseen by a qualified archaeologist who is experienced in teaching nonspecialists, to ensure that forepers ons and
field supervisors can recognize archaeological resources in the event that any are discovered during construction. The City of Palo Alto Public Works Utilities Division and/or its construction contractor(s) shall keep a log or register to document
that all construction workers have received
the training. If potential archaeological resources are observed or reported by construction workers, the actions described in Mitigation Measure CUL
-
1 shall be applied to the resource or resources, as
applicable
.

Applicant or
designee/

Construction
contractor

Prior to and
d
uring
c
onstruction

C
ity of Palo Alto

Planning
Department

EOLOGY AND
S
OILS

GEO
-
1 If vertebrate fossils are discovered during construction, all work within 50 feet of the site shall stop immediately and the construction contract shall immediately notify the City of Palo Alto. Before work resumes, a qualified professional paleontologist
shall assess the nature and
importance of the find and recommend appropriate treatment.

Treatment may include, but is not limited to, preparation and recovery of fossil materials so that they can be housed in an appropriate museum or university collection
and may also include preparation of a report for
Applicant or
designee/

Construction
contractor

D
uring
construction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
16 Packet Pg. 465 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
9 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

publication describing the finds. The project applicant shall be responsible for implementing the recommendations of the qualified paleontologist. A report of all findings shall be submitted to the City

AZARDS AND
H

AZARDOUS
M

ATERIALS

HAZ
-
1 A Soil Management and Transportation Plan (SMTP) shall be created for the project to assist
construction workers in identifying potentially
hazardous materials and guide the handling, storage, and transportation of materials excavated during fiber
-
optic infrastructure installation. The
SMTP will detail the necessary actions to comply with applica ble
hazardous materials regulations, some of which include Health and Safety Code Section 25100 et seq. and Section 25163 et seq., 22 CCR 66263.10 et seq., 13 CCR 1160 et seq., California Vehicle Code Sections 12804 et seq., and 31300 et seq. The SMTP shal
l establish criteria for
reuse of excavated materials or off
-
site transport for disposal at
appropriate State
-
approved facilities. The SMTP shall be reviewed and
approved by the City prior to the issuance of construction permits.

Examples of the types of m
easures that the plan could include are:



Requirements for field screening to identify potentially contaminated soil;



Dust mitigation measures for earth moving activities that may include wetting and other forms of material stabilization;



Procedures for stockpiling and stockpile management to
isolate apparently contaminated materials and minimize
migration of those materials from stockpile areas;



Procedures for stockpile sampling and analysis to characterize the soil for appropriate transport and disposal; and



Identification of appropriate disposal facilities.

Applicant or
designee/

Construction
contractor

Prior to
issuance of
construction

permit
s

SMTP to be
implemented
during
construction

C
ity of Palo Alto

Planning
Department

YDROLOGY AND
W
ATER
Q
UALITY

HYD
-
1 Fuels and other fluids used for the operation of construction equipment,

shall not be staged or stored within areas that the Federal Emergency Management Agency have mapped as special flood hazard areas.

Likewise, equipment staging and storage shall not occur within areas subject to inundation from tsunami or seiche, as mapped

by the
California Department of Conservation. Bentonite mud and mud pits used for horizontal directional drilling shall be exempt from this mitigation measure because bentonite is non
-
toxic. Permanent project
features containing fluids, such as the propos
ed fiber hut at Colorado
Substation, but be raised such that they are above inundation elevations.

Applicant or
designee/
Construction
contractor

During
construction
and operation

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
17 Packet Pg. 466 of 946

City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
10 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

RANSPORTATION

TRA
-
1 Prior to
project construction, the project applicant or its construction contractors shall coordinate with the applicable traffic regulatory agency (City of Palo Alto, County of Santa Clara, and Caltrans) regarding planned improvements near the fiber
-
optic facility

to limit interference with the
implementation of roadway improvements or trenching in nearly completed facilities. At a minimum, coordination shall include the following:



Circulation and detour plans shall be developed by the
applicant to minimize impacts to local street circulation, including the use of signage and flagging to guide vehicles through and/or around the construction zone. Circulation and detour plans must be
approved by the City prior to
construction.



To minimize disturbances to traffic, throughout project construction, the construction staging areas shall be provided by the applicant and its contractors in locations that are not within travel lanes or paved shoulders of existing public roads.

Construct
ion staging areas shall not be located at transit stops or facilities.



A traffic plan shall be prepared by the applicant that
incorporates all of the above measures and any additional measures required by the City of Palo Alto. The project applicant shall provide the traffic plan to the City for review as part of the construc
tion permit submittal. Both parties shall
ensure that revisions are agreed upon and the final traffic plan is approved by both the applicant and the City of Palo Alto prior to the issuance of construction permits and the start of construction activities.

Applicant or
designee/
Construction
contractor

Prior to
issuance of
construction
permits and
d
uring
construction

C
ity of Palo Alto

Planning
Department

T
RIBAL
C

ULTURAL
R

ESOURCES

TCR
-
1 In the event that cultural resources of Native American origin are identified during implementation of the proposed project, all earth -
disturbing work within 50 feet of the find shall be temporarily suspended or redirected until an archaeologist and cultur ally affiliated
Native American representative have evaluated the nature and significance of the find. If the City, in consultation with local Native Americans, determines that the resource is a tribal cultural resource and thus significant under CEQA, a m
itigation plan shall be prepared and
implemented in accordance with state guidelines and in consultation with local Native American group(s). The plan shall include avoidance of Applicant or
designee/

Construction
contractor

During
c
onstruction

C
ity of Palo Alto

Planning
Department

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

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City of Palo Alto


Mitigation Monitoring + Reporting Program

P a g e

|
11 Mitigation Measure
Number

Mitigation Measure

Text

Responsible for
Implementation

Timing of
Compliance

Oversight of
Implementation

the resource or, if avoidance of the resource is infeasible, the plan shall outline the appropriate treatment of the resource in coordination with the culturally affiliated local Native American tribal representative and, if applicable, a qualified archaeo
logist. Examples of appropriate
mitigation for tribal cultural resources include, but are not limited to, protecting the cultural character and integrity of the resource, protecting traditional use of the resource, protecting the confidentiality of the res
ource, or heritage recovery. Regardless of the plan developed, the City of Palo Alto shall maintain the confidentially of the resource.

Item 24
Attachment B - Mitigation
Monitoring and Reporting Plan

Item 24: Staff Report
Pg.
19 Packet Pg. 468 of 946

Award in accordance with Proposal No. 2401-30 dated March 14, 2024 and Staff Report 2403-2713 approved on June 18, 2024.

PO NTE: $313,844.00
Upon notification of items shipping staff will advise the delivery address for all items.
0010 Fiber Hut 276,510 USD 1.00 276,510.00
Purchase and delivery of Fiber Hut for Fiber to the Premise project. - 11#-6"x20#x9# Shelter $204,375
Optional add on items:
- Generator 25kw diesel engine $43,335
- Inverter - (1) 4K 120VAC inverter N+1 $8,100
- DC Plant $20,700
500A Max Capacity 48VDC Plant configured for 300A N+1
100AH Lithium battery pack
Project Manager: Dave Yuan (650) 329-2522
Vendor Address

THERMO BOND BUILDINGS LLC
1001 W MAIN ST
ELK POINT SD 57025
Tel: 605-952-0070
Bill To:

Utilities Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto CA 94301
Ship To:

Utilities Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto CA 94301
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Chief Procurement Officer
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.

DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment.

INVOICE - A separate invoice is required for each order. Send to address indicated above.

City of Palo Alto
Purchasing and Contract Administration
P.O.Box 10250
Palo Alto CA 94303
Tel:(650)329-2271 Fax:(650)329-2468
Purchase Order
P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING

PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER
PO Number 4524000496
Date 06/03/2024
Vendor No. 108224
Payment Terms Payment Due 30 days
FOB Point F.O.B. Palo Alto
Ship via Vendor to ship bestway
Required Date 11/18/2024
Buyer/Phone Renee Howard / 650-496-5900
Email [email protected]
DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER

ARRANGEMENTS ARE INDICATED HEREIN

Page 1 of 2 ends

Item 24
Attachment C - Purchase
Order 4524000496 with
Thermo Bonds

Item 24: Staff Report
Pg.
20 Packet Pg. 469 of 946

Email: [email protected]
TOTAl NTE: $313,844.00
0020 Shipping (Estimated) 21,999 USD 1.00 21,999.00 0030 Crane Off Loading (Estimated) 15,335 USD 1.00 15,335.00 -------------------------
Sub-Total 313,844.00
Sales Tax 25,231.54
*** ORDERING VIA EMAIL ***
**** PRICE HAS BEEN QUOTED ****
Vendor Address

THERMO BOND BUILDINGS LLC
1001 W MAIN ST
ELK POINT SD 57025
Tel: 605-952-0070
Bill To:

Utilities Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto CA 94301
Ship To:

Utilities Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto CA 94301
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Chief Procurement Officer
Total 339,075.54
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.

INVOICE - A separate invoice is required for each order. Send to address indicated above.

ARRANGEMENTS ARE INDICATED HEREIN

Page 2 of 2 ends

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Attachment C - Purchase
Order 4524000496 with
Thermo Bonds

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21 Packet Pg. 470 of 946

CITY OF PALO ALTO
GDS Rev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
PAGE 1 OF 3
ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City.

CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City.

DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City.

PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O.

TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller.
(1) Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2) For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City.

CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager.

INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified.
(1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense. All of the above notwithstanding prior payment by City.

WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall:
(1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations;
(2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous);
(4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended);
(5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs.

Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title.

GOVERNING LAW: This P.O. shall be governed by the laws of the State of California.

INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees).

Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City.

EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs.

FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O.

AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party.

INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail.

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Attachment C - Purchase
Order 4524000496 with
Thermo Bonds

Item 24: Staff Report
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CITY OF PALO ALTO
GDS Rev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
PAGE 2 OF 3
ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste:

Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980.
(2) Zero Waste and Pollution Prevention:

Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance.

Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement.

All paper packaging must be Forest Stewardship Council (FSC) Certified.

All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped.

All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement.

Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions:
o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following:
(a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements.
o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists.

Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement.
(3) Energy and Water Efficiency:

Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include:
first cost, operating costs, maintenance costs, and disposal costs.

Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs:

Hazardous Waste Program (Public Works)
(650) 496-6980
Zero Waste Program (Public Works)
(650) 496-5910
Watershed Protection
(650) 329-2117
Energy Efficiency
(650) 496-2244
(4) Liquidated Damages:

Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O.

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Order 4524000496 with
Thermo Bonds

Item 24: Staff Report
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Event of Non-Performance
Recycled Paper Use
Failure to use 30% recycled content paper
Recyclable Packaging Materials
Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program.

Expanded Foam Plastics
Unapproved use of expanded foam plastics for secondary or shipping packaging
Pallet Use
Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City.

Acceptable Performance Level
(Allowed events per Fiscal Year)
1 1
0 1
Liquidated Damage Amount
$30 per each document
$235 or a minimum of $50 if the combined product
and shipping cost is $250 or less will be incurred if
this is not adhered to.
$235 or a minimum of $50 if the combined product
and shipping cost is $235 or less
$262 or a minimum of $50 if the combined product
and shipping cost is $2 or less

CITY OF PALO ALTO
GDS Rev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES:

The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance.

PAGE 3 OF 3
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Order 4524000496 with
Thermo Bonds

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Police
Meeting Date: June 17, 2024
Report #:2405-3086
TITLE
Approval of a Professional Services Contract Number C24188127 with Telecommunications Engineering Associates (TEA) in an Amount Not to Exceed $834,882 for Public Safety Radio Network Maintenance and Construction for a Period of Five (5) Years; CEQA Status: Not a Project

RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or their designee to exempt solicitation and execute Contract No. C24188127 (Attachment A) with Telecommunications Engineering Associates (TEA) for a term of five (5) years and a total amount not-to-exceed (NTE) $834,882 for:

1. Public safety radio maintenance for the Police and Fire Departments for NTE $645,000 with an additional services contingency of $40,000; and

2. Services related to the design and construction of the Public Safety Building (PSB), project PE-15001, for $189,882.

BACKGROUND
The Silicon Valley Regional Interoperability Authority services the regional public safety radio network which includes the County of Santa Clara, its fifteen cities and towns, and all special districts. In 2010, the Palo Alto City Council approved an agreement to form the Silicon Valley Regional Interoperability Authority, a joint powers authority in partnership with other Santa Clara County municipalities and agencies to enhance and coordinate regional public safety data and radio communications systems. City Council approved a subsequent Memorandum of Understanding (MOU) in June 2015 to participate in a multi-year project with other Silicon Valley Regional Interoperability Authority members to fund and construct a county-wide digital radio communications Silicon Valley Regional Communications System (SVRCS) to layer on to the legacy analog systems each agency maintains.

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The SVRCS is a trunked digital communications system using the 700 MHz frequency spectrum currently in use in Santa Clara County. Radio sites and dispatch centers are connected through the Silicon Valley Regional Interoperability Authority EComm digital microwave system that provides connectivity to remote government radio sites. EComm is a private microwave network connecting all Public Safety Answering Points (9-1-1 centers), selected key public safety facilities and numerous radio sites throughout Santa Clara County. EComm provides secure data and voice communications to public safety agencies and other cooperating agencies for mission critical applications.

The City continues to maintain one type of analog radio system for the Police Department and another type of system for the Fire Department. The analog radio systems are used for disaster recovery purposes for both the Departments in the event the digital system becomes unusable.

The new Public Safety Building (PSB) is one of ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project. In June 2018, Council authorized a five-year contract with TEA as the City’s radio system maintenance provider1. In June 2019, Council authorized Contract Amendment No. 1 with TEA to add provision of detailed information about the existing radio system infrastructure to assist in designing the radio system and equipment specifications for the new PSB2. In March 2022, Council authorized Contract Amendment No. 2 with TEA to increase the scope of services to include program verification and design review for the PSB3.

ANALYSIS
TEA will continue to provide professional telecommunications engineering services to maintain the three legacy channels, radio infrastructure and related equipment. All equipment covered under this agreement will be maintained by TEA and kept operational, utilizing contemporary industry standards and modern preventative maintenance techniques. An additional contingency of $40,000 is requested for unplanned replacement replace of any parts or components if required.

Staff recommends entering a single source contract with TEA pursuant to PAMC 2.30.360 (d) - 1 City Council, June 25, 2018; Agenda Item #6, SR#9246, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/id-9246.pdf
2 City Council, June 24, 2019; Agenda Item #26, SR#10352 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2019/id-10352.pdf
3 City Council, March 14, 2022; Agenda Item #7, SR#13978 https://portal.laserfiche.com/Portal/DocView.aspx?id=59382&repo=r-704298fc&searchid=340390a8-da13-4bb8- aa91-a8e08b88550a
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Contracts for goods, wholesale commodities and services, general services or professional services available from only one source, where the Procurement Officer has determined, in writing, there is no adequate substitute or equivalent provider. Examples of acceptable sole source acquisitions or purchases may include, without limitation: equipment or services for equipment, for which there is no comparable competitive product or service except that provided by the equipment manufacturer, distributor or dealer; proprietary products sold directly by the manufacturer; a component or replacement part, for which there is no commercially available substitute and which can be obtained only from the manufacturer; goods where there is only one authorized distributor in the area; and goods where compatibility with goods in use by the city is an overriding consideration.

TEA is the only provider capable to provide these services to the City for several reasons. TEA has extensive knowledge of the system, City facilities, and carries the spare equipment required to maintain it and has been satisfactory in its work with the City over the past 15 years. TEA is based in San Carlos, CA, and is the only provider that can meet the service response times for on-site service. Given the design and completion timelines of the Public Safety Building, additional benefits for expediency and security include an ability to ensure safe decommission existing infrastructure without damaging the remaining equipment and compliance with the necessary City and Police Department background checks required to access the facilities in which the system is housed.

TEA will charge an hourly rate of $210 for the added services, with a not-to-exceed amount of $189,882 for the services necessary to transition to the new PSB, for a new total not-to-exceed amount of the contract of $834,882. These services will be approached as Additional Services, as defined in the contract, which are assigned via written Task Order approved by the City’s Project Manager as detailed in the contract.

FISCAL/RESOURCE IMPACT
The Contract is for the following services: 1) ongoing public safety radio maintenance for the Police and Fire Departments for $645,000, 2) replacement service contingency of $40,000 and, 3) services related to the design and construction of the Public Safety Building project (PE- 15001) for $189,882.

Funding for the ongoing public safety radio maintenance and the contingency are partially funded in the proposed FY 2025 Police Department budget. If the proposed budget is not sufficient and the costs can not be absorbed in the proposed FY 2025 budget, the Department will come back to City Council at mid-year for a request of additional funding. Funding for the services related to the PSB are in the proposed FY 2025 Capital Improvement Budget under project PE-15001 and no further funding is required.

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STAKEHOLDER ENGAGEMENT
This contract was reviewed and coordinated with internal departments including legal, procurement, and financial functions to ensure alignment with City policies and procedures.

ENVIRONMENTAL REVIEW
These services do not constitute a project for the purposes of the California Environmental Quality Act.

ATTACHMENTS
Attachment A: Contract with Telecommunications Engineering Associates (TEA) C24188127 APPROVED BY:

Andrew Binder, Police Chief
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