Agenda packet — Palo Alto City Council, August 5, 2024 (part 1 of 3)

CITY COUNCIL
Regular Meeting
Monday, August 05, 2024
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.

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

Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.

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

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

Subject of Negotiations: Purchase, Exchange, and/or Lease, Price and Terms of Payment AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (7:05 ‐ 7:35 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # of speakers.Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

4. Authorization to Execute an Amendment to Legal Services Contract S22183520 with Liebert Cassidy Whitmore to Increase Amount by $150,000 for Total Not‐to‐Exceed Amount of $320,000 and to Extend the Term; CEQA Status – Not a Project.

5. PUBLIC HEARING/QUASI‐JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real [24PLN‐00041; 24PLN‐00129] Approval of a Vesting Tentative Map to Subdivide One Existing 4.5‐acre Parcel into Two Parcels and to Approve a Streamlined Housing Development Review Application for a 61‐unit Apartment Building. The Project Also Includes 44 Mobile Homes, which are Regulated by the State, and Authorization for the City Manager to Execute Amended Regulatory Agreements. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development). Zoning District:

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

7. SECOND READING: Adopt an Ordinance and Resolution Extending the Interim Parklet Program to the Car‐Free Portion of Ramona Street through March 2025; CEQA status ‐ categorically exempt (FIRST READING: June 18, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (7:45 ‐ 8:00 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 8: 8:15 ‐ 8:30 PM, Item 9: 8:30 ‐ 10:00 PM, Item 10: 10:00 ‐ 10:15) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

8. PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA status ‐ categorically exempt.

9. PUBLIC HEARING: Adoption of a Resolution Implementing the North Ventura Coordinated Area Plan (NVCAP), Amending the City’s Comprehensive Plan and Certifying the Supplemental Environmental Impact Report, Including a Statement of Overriding Considerations; and FIRST READING: an Ordinance Adding Chapter 18.29 and Amending Chapters 18.14, 18.24, and 16.65 in the Palo Alto Municipal Code as well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the NVCAP area. CEQA Status ‐‐ Supplemental Environmental Impact Report SCH #2023020691.

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

12. Fiscal Year 2024 Annual Evaluation Report for the Santa Clara County Multi‐ Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts

13. City Council Summer Recess Report

14. Update on Pending State and Federal Legislation, Advocacy and Grant Writing Activities; CEQA status – not a project
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee August 6, 2024
Public Comment Letters
Schedule of Meetings
SUPPLEMENTAL / AMENDED AGENDA ITEMS

5. SUPPLEMENTAL MEMO: PUBLIC HEARING/QUASI‐JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real [24PLN‐00041; 24PLN‐00129] Approval of a Vesting Tentative Map to Subdivide One Existing 4.5‐acre Parcel into Two Parcels and to Approve a Streamlined Housing Development Review Application for a 61‐unit Apartment Building. The Project Also Includes 44 Mobile Homes, which are Regulated by the State, and Authorization for the City Manager to Execute Amended Regulatory Agreements.

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

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

You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

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

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.

California Government Code §84308 , commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $250 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.

1 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

13. City Council Summer Recess Report

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

2 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

13. City Council Summer Recess Report

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

3 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

13. City Council Summer Recess Report

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

4 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

13. City Council Summer Recess Report

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

5 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 6:05 PM)

1. Interview Candidates for Vacancies on Historic Resources Board CLOSED SESSION (6:05 ‐ 7:05 PM)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS.

Authority: Government Code Section 54956.8.

Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site).

Negotiating Party: Palo Alto Unified School District.

City Negotiators: (Ed Shikada, Kiely Nose, Kristen O'Kane, Sunny Tong).

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 ‐ 7:40 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (7:40 ‐ 7:45 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

3. Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RM‐20. Supplemental Report added

6. Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2024 Conference, to be held October 16‐18, 2024, in Long Beach, California

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

11. Accessory Dwelling Unit (ADU)‐ 2024 Quarter 1 Report

13. City Council Summer Recess Report

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In‐fill Development).

Zoning District: RM‐20.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

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

You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

6 August 05, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: August 5, 2024
Report #:2406-3115
TITLE
Interview Candidates for Vacancies on Historic Resources Board

RECOMMENDATIONS
Staff recommends the City Council interview four candidates for vacancies on the Historic Resources Board.

BACKGROUND
At the June 17, 2024 City Council Meeting the City Council selected four candidates to interview for two vacancies on the Historic Resources Board. The interview schedule for August 5, 2024 is listed below.

Schedule of Interviews for August 5, 2024
Historic Resources Board
5:30 PM Caroline Willis In Person
5:40 PM Geddes Ulinskas In Person
5:50 PM Zachary Pozner Zoom
6:00 PM Barry Katz In Person

ATTACHMENTS
None
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 7 of 554

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 5, 2024
Report #:2406-3189
TITLE
Approval of Minutes from June 17, 2024 and June 18, 2024 Meetings

RECOMMENDATION
That the minutes be reviewed and approved.

ATTACHMENTS
Attachment A: June 17, 2024 Draft Action Minutes
Attachment B: June 18, 2024 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun
Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
1 Packet Pg. 8 of 554

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 11 ends

Special Meeting
June 17, 2024
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 4:00 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Council Member Tanaka Arrived at 5:30 P.M.

Present Remotely:

Absent:

Special Orders of the Day

1. Proclamation June 2024 as LGBTQIA+ Pride Month

NO ACTION

2. Proclamations Recognizing Departing Boards and Commissions Commissioners

NO ACTION

3. Review List of Applications for Historic Resources Board Vacancies and Provide Direction for Interviews
The Council selected the following candidates to interview for the Historic Resources Board:
• Barry Katz: Burt, Kou, Lauing, Lythcott Haims, Stone, Tanaka, Veenker • Caroline Willis: Kou, Lauing, Stone, Veenker
• Geddes Ulinskas: Burt, Kou, Lauing, Lythcott Haims, Stone, Tanaka, Veenker • Zachary Pozner: Burt, Lythcott Haims, Tanaka

Item 3
Attachment A - June 17,
2024 Draft Action
Minutes

Item 3: Staff Report
Pg.
2 Packet Pg. 9 of 554

DRAFT ACTION MINUTES

Page 2 of 11 ends

Sp. City Council Meeting
Draft Action Minutes: 06/17/2024
Closed Session

4. CONFERENCE WITH CITY ATTORNEY- E XISTING LITIGATION
Su
bject: Eric Figueroa, et al. v. City of Palo Alto
S
anta Clara County Superior Court Case No. 21-C
V-3
83740 (One Case, as Defendant)
A
uthority: Government Code Section 54956.9(d)(1)
MOTION: Council Member Lythcott-Haims moved, seconded by Mayor Stone to go into Closed Session.

MOTION PASSED: 6-0-1, Tanaka absent
Council went into Closed Session at 4:35 P.M.

Council returned from Closed Session at 6:28 P.M.

Mayor Stone announced no reportable action.

Agenda Changes, Additions and Deletions

Public Comment

Council Member Questions, Comments and Announcements

Consent Calendar
Council Member Kou requested to pull Agenda Item Number 15.

Council Member Kou registered a no vote on Agenda Item Number 15.

Council Member Tanaka registered a no vote on Agenda Item Number 9, 11, 17, 19, 23, 24.

MOTION: Council Member Lythcott -Haims moved, seconded by Vice Mayor Lauing to approve Agenda Item Numbers 5-26, AA1.

MOTION PASSED ITEM 15: 6-1, Kou no
MOTION PASSED ITEMS 9, 11, 17, 19, 23, 24: 6-1, Tanaka no MOTION PASSED ITEMS 5-8, 10, 12-14, 16, 18, 20-22, 25, 26, AA1: 7-0 Item 3
Attachment A - June 17,
2024 Draft Action
Minutes

Item 3: Staff Report
Pg.
3 Packet Pg. 10 of 554

DRAFT ACTION MINUTES

Page 3 of 11 ends

Sp. City Council Meeting
Draft Action Minutes: 06/17/2024

5. Adoption of Fiscal Year 2025 Investment Policy as Recommended by the Finance Committee

6. Utilities Advisory Commission Recommends Adoption of the 2024 Annual Water Shortage Assessment Report

7. CONSENT: Approval of a Record of Land Use Action to Upgrade the Pro perty Located at 411 Kipling Street From a Category 4 Resource on the Local Historic Inventory to a Category 2 Resource.

8. CONSENT: Approval of a Record of Land Use Action to Upgrade the Property Located at 271 University Avenue From a Category 3 Resource on the Local Historic Inventory to a Category 2 Resource.

9. Approval of Construction Contract C24190748 with Ross Recreation Equipment Company Inc. in the Amount of $305,600 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not -to-Exceed Amount of $30,600 for the Ramos Park Improvements, Capital Improvement Program Project PG -14000; CEQA Status—Exempt Under CEQA Guidelines Section 15301

10. QUASI-JUDICIAL. 420 Acacia: Final Map and Street Naming [24PLN-00027]: Request for a Final Map to Subdivide a 35,573 Square Foot Parcel Having Split Zoning Designations (R - 1 and RM -30) for Condominium Purposes (16 Residential Units). Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In-fill Development).

11. Approval of Contract Amendment Number 1 to Contract C24189570 with Downtown Streets Team in the Amount of $548,958 to Combine Contracts to Increase Operational Efficiency for a Revi sed Total Not -to-Exceed Amount of $1.1 Million Over Three Years ; CEQA Status: Not a Project

12. Approval of Construction Contract Number C24190081 with Marina Landscape, Inc. in the Amount Not -to-exceed $338,459 for Dog Park Installation and Renovation Projec t PG - 18001; and Authorization of Contract Contingency in an Amount Not -to-Exceed $50,769 for Related, Additional but Unforeseen Work Which May Develop During the Project; and Amend the FY2024 Budget in the Capital Improvement Fund (2/3 vote required); CEQA status – categorically exempt.

13. Approval of Contract Amendment Number 1 to Contract Number S24189598 with Good City Company in the Amount of $18,120 for a Stream Corridor Protectio n Ordinance Update; the Total not-to-exceed Amount of the Contract is $92,293. CEQA Status: Exempt Pursuant to CEQA Guidelines 15061(b)(3).

14. Authorization for the Mayor to sign a 3 -Year Friendship Cities Agreement with Narok, Kenya
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15. Approval of a Funding Agreement with Federal Railroad Administration to Receive $6 Million for the Preliminary Engineering and Environmental Documentation Phase for the Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road crossings. CEQA status – statutorily exempt per CEQA section 15262; this funding agreement will partially fund CEQA/NEPA review of the grade separation projects.

16. Adopt a Resolution to Allow Consumption of Alcohol under PAMC section 9.04.010 on California Avenue in Conjunction with the 3rd Thursday Event

17. Approval of 1) Increase of Construction Contingency for Contract No. C21178123B with Swinerton Builders in the Amount of $1,000,000; 2) Contract Amendment No. 4 for Contract No. S20176170 with Romig Engineers, Inc. in the Amount of $21,78 6 and to Extend the Contract Term; 3) Increase of Contingency for Purchase Order with Pivot Interiors Inc. in the Amount of $23,440; and 4) Authorization for the City Manager to Execute a General Services Contract for Moving Services in an Amount of up to $250,000 for the New Public Safety Building Capital Project (PE -15001); CEQA - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772)

18. Approval of Contracts with US Bank and its Who lly Owned Subsidiary Elavon for General Banking, Safekeeping (Custodial), and Merchant Services for a Period of Five Years; and Approval of Contract with Wells Fargo for Lockbox Services for a Period of One Year; CEQA Status: Not a Project.

19. 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

20. Resolution to Vacate Portions of Thre e Public Service Easements at 1700 Embarcadero Road

21. Approval of an Extension to Building Permit 18000- 00536 for 429 University Ave; CEQA status – Mitigated Negative Declaration (ENV20718).

22. 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 C onditional Use Permit Thresholds. Environmental Review: CEQA Exemption 15061(b)(3) (FIRST READING: June 3, 2024 PASSED 7-0)

23. 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 Item 3
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Electrification Requirements and an Ordinance Amending Cha pter 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 -Re
ady Requirements
and Incentivize All -E
lectric 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)

24. A
doption of a Resolution Approving an Initial Study/Mitigated Negative Declaration for Citywide Implementation of Fiber -to-t
he-P
remises 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-E
xceed of $31,384 for Related Additional but Unforeseen Work That may Develop During the Project, for a Total Not
-t
o-E
xceed Amount of $370,460 with Thermo Bond
Buildings.

25. Ap
proval 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

26. Approval of Assignment and Assumption Agreement to transfer Baker Tilly US LLP’s contract to Baker Tilly Advisory Group, LP; CEQA – Not a Project

27. Approval of: (1) Contract No. C24187724 with LensLock, Inc (Lenslock) for replacement of the police public contact audio/video system for a five (5) year term in an amount not to exceed $1,128,225; and (2) Police Audio/Video Technology Surveillance Use Policy; CEQA status – categorically exempt. Item Removed Off Agenda and Placed on June 18, 2024 City Council Meeting.

AA1. Adopt an Ordinance and Resolution Extending the Interim Parklet Program to the Car - Fre
e Portion of Ramona Street through March 2025; CEQA status - c ategorically exempt
New Item added

City Manager Comments
Ed Shikada, City Manager

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Action Items

28. PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year 2025, Including the Operating and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining the Appropriations Limit for Fiscal Year 2025; Acceptance of Updates to the Retiree Healthcare Actuarial Report; and Approval of Contributions for Retiree Healthcare Benefits
Council Member Veenker recused herself from certain Stanford -related elements of the budget, outlined in Attachment C of the report.

MOTION: Council Member Lythcott -Haims moved, seconded by Vice Mayor Lauing to approve the Stanford related items of the FY 2025 Budget as outlined in Attachment C of the Staff Report.

MOTION PASSED: 5-1-1, Tanaka no, Veenker recused

MOTION: Vice Mayor Lauing moved, seconded by Mayor Stone to call the question.

MOTION PASSED: 6-1, Tanaka no

MOTION: Council Member Veenker moved, seconded by Mayor Stone to:

1. Adopt the Fiscal Year 2025 Budget Ordinance (Attachment A), which includes:
a. City Manager’s Fiscal Year 2025 Proposed Operating and Capital Budgets, previously distributed at the May 6 City Council Meeting (Attachment A, Exhibit 1) i. Amend the Fiscal Year 2025 Budget Appropriation for the General Fund (requires a 2/3 vote) by:

A. Increasing expense appropriation for Human Services Resource Allocation Process (HSRAP) in the Community Services Department in the amount of $58,000; and
B. Decreasing the Uncertainty Reserve by $58,000.
b. Amendments to the City Manager’s Fiscal Year 2025 Pro posed Operating Budget (Attachment A, Exhibit 2)
c. Amendments to the City Manager’s Fiscal Year 2025 Proposed Capital Budget (Attachment A, Exhibit 3)
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d. Fiscal Year 2025 City Table of Organization (Attachment A, Exhibit 4); and e. Fiscal Year 2025 Municipal Fee Changes (Attachment A, Exhibit 5) including Impact and In-Lieu Fees (Exhibit 6)

2. Accept the Fiscal Year 2025 – 2029 Capital Improvement Plan

3. Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2025 (Attachment B)

4. Accept the June 30, 2023 biennial actuarial valuation of Palo Alto’s Retiree Healthcare Plan and approve funding of the Actuarial Determined Calculation (ADC) for Fiscal Year 2025 and Fiscal Year 2026 with a two-year phase-in of the adjusted assumptions using the staff recommended funding level of $19.4 million and affirm the continued practice of transmitting amounts at a lower 5.75 percent discount rate as an additional discretionary payment to the City’s California Employers’ Retiree Benefit Trust (CERBT) Fund (Attachment D)
MOTION PASSED: 6-1, Tanaka no

29. PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends Adoption of Six Resolutions: 1) Approving the Fiscal Year 2025 Wastewater Collection Utility Financial Plan, Including Approval of a Short-Term Loan From the Fiber Optics Fund Reserve to the Wastewater Collection Fund Operations Reserve for Fiscal Year 2024, and Amending Wastewater Collection Rate Schedules S- 1, S-2, S-6 and S-7; 2) Approving the Fiscal Year 2025 Water Utility Financial Plan, and A mending Water Rate Schedules W -1, W-2, W-3, W-4, and W-7; 3) Approving the Fiscal Year 2025 Gas Utility Financial Plan, and Amending Gas Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the Fiscal Year 2025 Electric Utility Financial Plan and Accepting the 2024 City of Palo Alto Electric Cost of Service and Rate Study, and Amending Electric Rate Schedules E-1, E-2, E-4, E-4 TOU, E-7, E-7 TOU, E -14, E -EEC-1, E -NSE-1, E -2-G, E -4-G and E -7-G; 5) Amending Utility Rate Schedules EDF-1 and EDF-2 to Increase Dark Fiber Rates 2.6 Percent; 6) Amending Utility Rate Schedule D- 1 Increasing the Storm Water Management Fee by 2.6 Percent per Month per Equivalent Residential Unit for FY 2025; CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a) MOTION: Vice Mayor Lauing moved, seconded by Council Member Burt to adopt the following:

1. For the Wastewater Collection Utility, a Resolution (Attachment A):
a. Approving the Wastewater Collection Utility Financial Plan for Fiscal Year (FY) 2025, including approval of a short-term loan from the Fiber Optics Fund Reserve to the Wastewater Collection Fund Operations Reserve not to exceed $3,000,000 Item 3
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for FY 2024; Amend the Fiscal Year 2024 Budget Appropriation Ordinance: In t he Wastewater Collection Fund:
i. Increase the Transfer In from the Fiber Optics Fund by $3.0 million ii. Increase the Ending Fund Balance by $3.0 million; and b. Amending the following Wastewater Collection Utility Rate Schedules to reflect increases effective July 1, 2024 (FY 2025):
i. S-1 (Residential Wastewater Collection and Disposal), ii. S-2 (Commercial Wastewater Collection and Disposal), iii. S-6 (Restaurant Wastewater Collection and Disposal), and iv. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger);

2. For the Water Utility, a Resolution (Attachment B):
a. Approving the FY 2025 Water Utility Financial Plan; and b. Amending the following Water Rate Schedules to reflect increases effective July 1, 2024 (FY 2025):
i. W-1 (General Residential Water service),
ii. W-2 (Water Service from Fire Hydrants),
iii. W- 3 (Fire Service Connections),
iv. W-4 (Residential Master- Metered and General Non - Residential Water Service), and
v. W-7 (Non-Residential Irrigation Water Service);

3. For the Gas Utility, a Resolution (Attachment C):
a. Approving the Gas Utility Financial Plan FY 2025, which includes amending the Gas Utility Reserve Management Practices; and
b. Amending Gas Utility Rate Schedules FY 2025 to reflect increases effective July 1, 2024 (FY 2025):
i. G-1 Residential Gas Service,
ii. G-2 Residential Master-Metered and Commercial Gas Service, iii. G-3 Large Commercial Gas Service, and G -10 Compressed Natural Gas Service); and
c. Transferring up to 14.5% of gas utility gross revenues received during FY 2023 to the General Fund in FY 2025.

4. For the Electric Utility, a Resolution (Attachment D):
a. Accepting the 2024 City of Palo Alto Electric Cost of Service and Rate Study; b. Approving the Electric Utility Financial Plan FY 2025, which includes the following actions:
i. Amending the Electric Utility Reserves Management Practices, to direct staff to transfer to the CIP reserve, at the end of each fiscal year, any budgeted capital investment that remains unspent, uncommitted, and which is not proposed for reappropriation to the following fiscal year and to clarify how the Cap and Trade Program Reserve is adjusted each year. ii. Approving the following transfers at the end of FY 2024:

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1. Up to $20 million from the Electric Special Projects Reserve to the Supply Operations Reserve;

2. 2. Up to $17 million from the Supply Operations Reserve to the Hydroelectric Stabilization Reserve;

3. Up to $58 million from the Supply Operations Reserve to the Distribution Operations Reserve; and
iii. Approving the following transfers in FY 2025:

1. Up to $26 million from the Distribut ion Operations Reserve to the Supply Operations Reserve;

2. Up to $30 million from the Supply Operations Reserve to the Electric Special Projects Reserve; and

3. Up to $5 million from the Distribution Operations Reserve to the CIP Reserve;
c. Amending the following Electric Utility Rate Schedules effective July 1, 2024 (FY 2025):
i. E-1 (Residential Electric Service), E -2 (Small Non -Residential Electric Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E -7 (Large Non -Residential Electric Service), E -7 TOU (Large Non -Residential Time of Use Electric Service) and E -14 (Street Lights), each by varying percentages depending on rate schedule and consumption with an overall revenue increase of

0.5% effective July 1, 2024;
ii. Decreasing the Net Surplus Electricity Compensation (E -NSE-1) rate to reflect 2023 avoided cost, effective July 1, 2024; and
iii. Decreasing the Export Electricity Compensation (E -EEC-1) rate to reflect current projections of FY 2025 avoided cost, effective July 1, 2024; iv. Updating the Residential Master -Metered and Small Non -Residential Green Power Electric Service (E -2-G), the Medium Non -Residential Green Power Electric Service (E-4-G), and the Large Non-Residential Green Power Electric Service (E 7 G) rate schedules to reflect modified distribution and commodity components, effective July 1, 2024.

5. A Resolution (Attachment E) Amend the Fiscal Year 2024 Budget Appropriation Ordinance: In the Fiber Optics Fund:
i. Increase the Transfer Out to the Wastewater Collection Fund by 3.0 million ii. Decrease the Ending Fund Balance by $3.0 million; and amending Fiber Optic Utility Rate Schedules EDF-1 and EDF-2 to increase Dark Fiber Rates

2.6 percent effective July 1, 2024, consistent with the applicable Consumer Price Index;

6. A Resolution (Attachment F) amending Storm Water Management Fee Rate Schedule D - 1 to increase the Storm Water Management Fee by 2.6 percent effective July 1, 2024, consistent with the applicable Consumer Price Index.

MOTION PASSED: 6-1, Tanaka no
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30. Ap
prove Retention of the Current Western Area Power Administration (WAPA) Hydroelectricity Base Resource Contract Allocation From 2025 -20 30; CEQA Status: Not a
Project.

M
OTION: Council Member Burt moved, seconded by Council Member Veenker to keep the City of Palo Alto’s full share of its allocated hydroelectric resource under the current hydroelectricity supply contract, the 2025 Base Resource Contract from Sierra Nevada Region of the Western Area Power Administration (2025 WAPA Contract), as approved by Council in February of 2021 (Staff Report #116791).

Note: No action from City Council is required to remain in the contract at the current resource allocation percentage (12.06299%). Staff will revisit project financial impact in 2029 and make a recommendation for the period of 2030 through 2034. The decision to reduce the contract allocation or terminate the contract will be revisited every five years until the last termination opportunity in 2049.

MOTION PASSED: 7-0

31. D
iscussion Regarding Caltrans’ Repaving Project on El Camino Real Replacing Existing Parking with Bicycle Lanes, Authority for Staff to Make Adjustments to the Residential Preferential Parking Permit Programs and Return to Council on Consent if Needed, Authority for Staff to Enter into Agreements As Needed to Provide Temporary Safe Parking Along the Corridor in Palo Alto, and Approval of a Resolution Supporting the Removal of On
-S
treet Parking for this Project; CEQA status – categorically exempt.

I
tem continued to June 18, 2024 Special City Council Meeting.

Adjournment: The meeting was adjourned at 11:18 P.M.

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

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

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

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Special Meeting
June 18, 2024
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 4:00 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Council Member Tanaka Arrived at 6:38 P.M.

Present Remotely:

Absent:

Agenda Changes, Additions and Deletions

Action Items
AA4. Discussion Regarding Caltrans’ Repaving Project on El Camino Real Replacing Existing Parking with Bicycle Lanes, Authority for Staff to Make Adjustments to the Residential Preferential Parking Permit Programs and Return to Council on Consent if Needed, Authority for Staff to Enter into Agreements As Needed to Provide Temporary Safe Parking Along the Corridor in Palo Alto, and Approval of a Resolution Supporting the Removal of On-Street Parking for this Project; CEQA status – categorically exempt. Item Continued from June 17, 2024 City Council Meeting, Presentation Limited Public Testimony on portions of this Agenda Item may be taken at the discretion of the Council at the June 18th City Council Meeting.

June 17, 2024 original report and material for this item can be found here* (Agenda Item Number 31). On June 17th the Council Received Public Testimony; the Item Was Continued to June 18 for further Council Deliberation and Action. https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14311 MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to:

A. Authorize the City Manager or their designee to direct staff to make necessary adjustments to the RPP Programs and return to Council,
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B. Authorize the City Manager or their designee to enter into agreements as needed to provide temporary safe parking for those currently along the project corridor in Palo Alto, and
C. Approve a resolution supporting the removal of on-street parking for this project.

Conditions to include:

1. Transmittal of the Fehr & Peers review memo and the joint City and VTA memo (Attachments A & D) to Caltrans with a request that Caltrans respond to requested changes

2. Development of a new Maintenance and Liability Agreement with Caltrans for the bikeway project

3. A Caltrans commitment to expediting encroachment permits on El Camino Real

4. Caltrans provision of tentative and final project timelines, when available, for public notification efforts

5. Parking mitigation plan: Adjustments to the RPP program with outreach to the bus iness and neighborhood stakeholders , provision of the VTA smart passes through PATMA for workers, restrictions o n short-term parking locations expanded o n side streets immediately adjacent to E l Camino, a program to relocate RV dwellers and provide bike racks

6. Continue to work with VTA and Caltrans to pilot bus stops designs installation

7. Monitor and measure mode shift and collision outcomes MOTION PASSED: 5-1-1, Kou no, Tanaka absent

MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to:

8. City-proposed locations in Attachment E for additional No Right Turn on Red restrictions MOTION PASSED: 6-0-1, Tanaka absent

Public Comment

Council Member Questions, Comments and Announcements
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Study Session

1. Study Session: Report from the Human Relations Commission regarding their Research on the Lived Experience of Asian American, Native Hawaiians and Pacific Islanders; CEQA status – not a project Item Removed Off Agenda

Consent Calendar
MOTION: Council Member Burt moved, seconded by Council Member Veenker to approve Agenda Item Numbers 2-8, AA1, AA2.

MOTION PASSED: 6-0-1, Tanaka absent

2. Approval of 1) Construction Contract No. C24190876 with Valentine Corporation in the Amount of $667,369 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Deve lop During the Project Up to a Not -to-Exceed Amount of $100,105; and 2) Amendment No. 1 to Contract No. S24189099 with H.T. Harvey & Associates in an Amount Not to Exceed $131,732, for Biological Compliance and Post Construction Monitoring and Restoration, for the Baylands Boardwalk Pilings Repair Project Capital Improvement Program PE-24000; CEQA status – exempt under CEQA Guidelines Section 15301

3. Approval of Amendment No. 3 to Contract Number C21180324 with Canopy in the Amount of $376,550 and to Extend Contract Term for One Year for Continued Implementation of Urban Forest Master Plan Programs, and Approval of a Budget Amendment in the General Fund; CEQA Status - Exempt Under CEQA Guidelines Section 15308

4. Approval of Amendment Number 5 to Contract Number C20176363 With Magellan in the Amount of $1,122,121 to Incorporate Additional Design and Technical Services for the Fiber-to-the-Premises (FTTP) Pilot Project for a Revised Total Not-to-Exceed of $6,807,412 Over a Five-and-a-Half-Year Term; CEQA Status – Not a Project

5. Approval of General Services Contract Number C25188309 with Cintas Corporation in the Amount of $2,124,293 to Provide for Rental and Laundering of Work Uniforms and Miscellaneous Items for a Period of Five Years; CEQA Status – Not a Project.

6. Approval of Contract Number C25190507 with OverDrive in an Amount Not to Exceed $200,000 to Provide Library Electronic Content ("E -Content") for a Period of Two Years; CEQA status – not a project.

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7. Approval of Professional Service Contract Number C25191000 with Grassroots Ecology in an Amount Not -to-Exceed $612,027 for Land Stewardship Services at Pearson - Arastradero Preserve for a period of Five Years; CEQA status – categorically exempt.

8. Approval of a Memorandum of Understanding for a Countywide Food Recovery Program; CEQA Status – Exempt under CEQA Guidelines Section 15308 AA1. Approval of (1) Professional Services Contract No. C24187724 with LensLock, Inc in Amount Not to Exceed $1,181,400 for Replacement of the Police Public Contact Audio/Video System for a Period of Five (5) Years; (2) Police Audio/Video Technology Surveillance Use Policy; and (3) Approve a Budget Amendment in the Supplemental Law Enforcement Services Fund and Capital Improvement Fund (2/3 vote required); CEQA status – not a project
AA2. Recommend City Council Approval of Various Task Orders with Baker Tilly for Internal Audit Services 1) Extend deadline for FY 2024 Task Orders Task 1: Citywide Risk Assessment, Task 2: Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor and Annual Audit Coordination, 2) Execute New FY 2025 Task 5:

Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline and Other Ongoing Office Administrative Functions, and 3) Amend the budget for FY 2024 Task Orders as Recommended by the Policy & Services Committee; CEQA Status – Not a Project.

City Manager Comments
Ed Shikada, City Manager

Action Items

9. Adoption of the Community Development Block Grant (CDBG) FY 2024-25 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG and CDBG CARES Act (CDBG-CV) Funds for FY 2024- 25, and Approval of a Budget Amendment in the Community Development Block Grant Fund.

MOTION: Council Member Kou moved, seconded by Mayor Stone to:

1. Adopt the draft Fiscal Year (FY) 2024-25 Annual Action Plan (AAP, Attachment A) and the associated CDBG FY 2024- 25 Annual Action Plan Resolution (Attachment B) allocating Community Development Block Grant (CDBG) and CDBG CARES Act (CDBG -CV) funding for FY 2024-25; and
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2. Authorize the City Manager to execute the FY 2024 -25 CDBG application to fund the FY 2024-25 Annual Action Plan and associated documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and

3. Authorize staff to submit the Fiscal Year 2024 -25 AAP (Attachment A) to the U.S.

Department of Housing and Urban Development (HUD) by the July 6, 2024, deadline; and

4. Authorize the City Manager or designee to draft and execute a loan agreement, regulatory agreement, and related documents necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing loan documents and approved by the City Attorney.

5. Amend the Fiscal Year 2025 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by:
a. Increasing Revenue from Other Agencies by $1,157,286 b. Increasing General Expenses by $1,157,286
MOTION PASSED: 7-0

10. PUBLIC HEARING/QUASI-JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real [24PLN-00041]: Provide Direction on Applicant’s Request for Amendments to the Existing Regulatory Agreement and Proposed Application for a Streamlined Housing Dev elopment Review to Allow the Redevelopment of the Buena Vista Village Mobile Home Park. The Proposed Development Would Result in Two Parcels, One Featuring a new 61-Unit, 100% Affordable Housing, Multi-Family Apartment Building and Associated Work Within the Right-of-Way; and the Second Parcel Featuring a Renovated 44-Unit Mobile Home Park, Which is Under State Jurisdictional Authority. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA G uidelines Section 15332 (In- fill Development). Zoning District:

RM-20.

MOTION: Council Member Veenker moved, seconded by Council Member Kou to:

1. Return on the August 5, 2024 City Council Meeting following the completion of the environmental analysis for a decision on the Streamlined Housing Development Review application and to authorize the City Manager to Execute the amended Regulatory Agreements with the following:
a. Consider whether any trees can be preserved on Los Robles; and, b. Whether a surface treatment on the pavement can reduce heat island concerns; and, Item 3
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c. Whether larger trees or additional trees can be planted on the Mobile Home Park ; and,
d. All reasonable efforts to resolve disputes standing in the way of housing decisions ; and,
e. Whether color choices may be returned to the resident preference; and, f. Pursue a Palo Alto worker resident preference.

MOTION PASSED: 7-0

11. PUBLIC HEARING: Adoption of a Resolution Implementing the North Ventura Coordinated Area Plan (NVCAP), Amending the City’s Comprehensive Plan and Certifying the Supplemental Environmental Impact Report, Including a Statement of Overriding Considerations; and FIRST READING: an Ordinance Adding Chapter 18.29 and Amending Chapters 18.14, 18.24, and 16.65 in the Palo Alto Municipal Code as Well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the NVCAP area. CEQA Status -- Supplemental E nvironmental Impact Report SCH #2023020691. Item Removed Off Agenda and Deferred to August 5, 2024 City Council Meeting.

AA3. Selection of Rail Grade Separation Alternatives for Churchill Avenue, Meadow Drive, and Charleston Road Crossings for the Advancement of the Alternatives into the Preliminary Engineering and Environmental Documentation phase; CEQA status – statutorily exempt under CEQA section 15262 (feasibility and planning study) (Item Continued from June 10, 2024) New Item added – Limited Public Testimony on portions of this Agenda Item may be taken at the discretion of the Council at the June18th City Council Meeting.

June 10, 2024 original report and material for this item can be found here* (Agenda Item Number 13). On June 10th the Council Received Presentations and Public Testimony; the Item Was Continued to June 18 for further Council Deliberation and Action. https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14305

SUBSTITUTE MOTION: Council Member Kou, seconded by Council Member Tanaka to a dvance the hybrid and trench alternatives for Meadow Drive and Charleston Road into the preliminary engineering and environmental documentation phase.

SUBSTITUTE MOTION FAILED: 2-5, Lauing, Veenker, Burt, Lythcott-Haims, Stone no

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MOTION: Vice Mayor Lauing moved, seconded by Council Member Burt to advance the hybrid (including a mixed wall/column approach ) and underpass alternatives for Meadow Drive and Charleston Road into the preliminary engineering and environmental documentation phase.

MOTION PASSED: 4-3, Kou, Lythcott-Haims, Tanaka

Adjournment: The meeting was adjourned at 10:41 P.M.

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

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

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City Council
Staff Report
From: City Attorney
Report Type: CONSENT CALENDAR
Lead Department: City Attorney
Meeting Date: August 5, 2024
Report #:2407-3268
TITLE
Authorization to Execute an Amendment to Legal Services Contract S22183520 with Liebert Cassidy Whitmore to Increase Amount by $150,000 for Total Not-to-Exceed Amount of $320,000 and to Extend the Term; CEQA Status – Not a Project.

RECOMMENDATION
Authorize the City Attorney or designee to amend the agreement for litigation defense services with the law firm of Liebert Cassidy Whitmore (Contract S22183520) to increase the contract amount by $150,000 for a total not-to-exceed amount of $320,000 and to extend the contract term to December 31, 2024.

BACKGROUND
Liebert Cassidy Whitmore is a law firm representing cities in a variety of areas, including labor and employment law.

In August 2021, the City entered into a three-year agreement (S22183520) in the amount of $85,000 with Liebert Cassidy Whitmore for litigation defense services in the civil suit Figueroa, et al. v. City of Palo Alto, et al., Santa Clara Co. Sup. Ct. Case No. 21-CV-383740. In January and April 2024 staff amended the contract to increase the not-to-exceed amount to $170,000. Staff now seeks authority to increase the contract amount by $150,000 which will bring the new not-to-exceed amount to $320,000. Staff also seeks authority to extend the contract term to December 31, 2024. Litigation defense is continuing in this matter.

FISCAL/RESOURCE IMPACT
Funding for this amendment does not require additional budgetary authority as it can be accommodated within existing funding allocated to the City Attorney’s Office as part of the FY 2025 Adopted Operating Budget.

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STAKEHOLDER ENGAGEMENT
The City Attorneys Office works closely with the City Manager and department personnel on litigation matters.

ENVIRONMENTAL REVIEW
Amendment of a legal services contract is not a project requiring environmental review under the California Environmental Quality Act (CEQA) (See CEQA Guidelines 15378(b)(5), administrative activities that will not result in direct or indirect physical changes in the environment).

APPROVED BY:

Molly Stump, City Attorney
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: August 5, 2024
Report #:2407-3239
TITLE
PUBLIC HEARING/QUASI-JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real [24PLN-00041; 24PLN-00129] Approval of a Vesting Tentative Map to Subdivide One Existing 4.5-acre Parcel into Two Parcels and to Approve a Streamlined Housing Development Review Application for a 61-unit Apartment Building. The Project Also Includes 44 Mobile Homes, which are Regulated by the State, and Authorization for the City Manager to Execute Amended Regulatory Agreements. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In-fill Development). Zoning District: RM-20.

RECOMMENDATION
Staff recommends that Council take all of the following actions:

1. Consider the project exempt from CEQA in accordance with CEQA Guidelines Section 15332 (Infill development);

2. Approve the Streamlined Housing Development Review application to develop a 61- unit apartment building pursuant to the findings and subject to conditions of approval set forth in Attachment B;

3. Approve the associated Vesting Tentative Map application pursuant to findings and subject to conditions of approval set forth in Attachment B; and

4. Authorize the City Manager to execute the amended regulatory agreements and related documents in Attachment D.

EXECUTIVE SUMMARY
On February 15, 2024, the Santa Clara County Housing Authority (SCCHA) submitted a formal application for Streamlined Housing Development review. The proposed project includes an affordable 61-unit apartment development on a portion of the subject parcel located at 3980 El Camino Real (see Attachment A, Location Map). On April 30, 2024, SCCHA submitted a separate, associated, Vesting Tentative Map application to subdivide the existing lot into two parcels. The apartment building would be developed on one of the resulting parcels, while the second lot would be rehabilitated with 44 mobiles homes. Rehabilitation of the mobile homes Item 5
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parcel is processed through the State Department of Housing and Community Development (HCD).

The project is a housing development project in accordance with the Housing Accountability Act and qualifies for a Density Bonus and associated concessions, waivers, and allowances under state law (California Government Code §65915) and PAMC Chapter 18.15. To align with the proposed redevelopment, the project also includes modifications to an existing 2017 regulatory agreement between the City, County, and County Housing Authority (see Attachment D, Existing 2017 Regulatory Agreement).1 The project plans are included in Attachment G and the proposed Regulatory Agreements as well as the Termination Agreement for the existing Regulatory Agreement are included in Attachment C.

On June 18, 2024, Council reviewed the proposed Streamlined Housing Development review application and proposed amendments to the regulatory agreement.2 Council provided feedback on these actions. This report summarizes modifications that were made in response to that direction. Additionally, this report includes information on the Vesting Tentative Map application, which has been incorporated into the proposed actions and which was not discussed in the previous Council report. It also includes a link to the documentation supporting a Class 32 (infill development) exemption in accordance with the California Environmental Quality Act (CEQA), which was not yet available prior to the last hearing. On July 10, 2024 the Planning and Transportation Commission unanimously recommended approval of the Vesting Tentative Map application.

SCCHA must submit an application for tax credit funding in August, following Council approval.

This funding is critical for the project. In order to be competitive for this funding, which is critical to the project financing, completion of the entitlements is needed prior to the tax credit application submittal. Upon review of this report, if the Council wishes to further discuss the report and to remove this item from the Consent Calendar, it will be scheduled for action on August 12, 2024 in order to keep to the funding application deadline.

BACKGROUND
Additional background information on the project is provided in the June 18, 2024 Council report. On June 18, Council directed staff to return to Council in August 2024, following the 1 City Attorney Report to City Council September 11, 2017, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager- reportscmrs/year-archive/2017/staff-report-8493-buena-vista-mou-amendment.pdf 2 June 18, 2024 City Council Meeting Staff Report
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4918&meetingTemplateType=2&comp iledMeetingDocumentId=10522
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completion of the environmental analysis, for a decision on the proposed Buena Vista redevelopment project, and consideration of the following:

1. Whether any trees can be preserved on Los Robles Avenue;

2. Whether a surface treatment on the pavement can reduce heat island concerns;

3. Whether larger trees or additional trees can be planted in the Mobile Home Park;

4. Whether color choices may be returned to the resident preference;

5. Pursue a Palo Alto worker resident preference; and

6. That all reasonable efforts to resolve disputes should be made to resolve disputes standing in the way of housing decisions.

The analysis section of this report summarizes SCCHA’s response and modifications to the plans in accordance with Council’s direction.

Planning and Transportation Commission Recommendation
The Vesting Tentative Map application associated with the proposed redevelopment requires a recommendation from the Planning and Transportation Commission (PTC) and Council approval. The PTC reviewed the Vesting Tentative Map on July 10, 2024, and unanimously recommended approval of the map based on findings and subject to conditions of approval set forth in the Record of Land Use Action.

Project Description
SSCHA submitted a formal application for Streamlined Housing Development review for a 61- unit apartment development on a portion of the existing Buena Vista Mobile home site (Application 24PLN-00041). The proposed apartments are located within a single, four-story (37 feet), 63,736 square feet building (0.89:1 Floor area ratio). Seventy-nine (79) parking stalls and one car loading space would be provided in accordance with code requirements. Attachment A includes a location map showing the zoning designation of the site and surrounding areas. A location map is included in Attachment A. The project description and justification of requested concessions and waivers is included in Attachment F and Attachment G shows the project plans for this development.

On April 30, 2024, SCCHA submitted the application for a Vesting Tentative Map (Map) to subdivide the existing parcel into two parcels (24PLN-00129). Under the existing Regulatory Agreement, the property must maintain, at minimum, 100 affordable units. However, the existing spacing of mobile homes does not meet current state rules regarding spacing and setbacks. The introduction of an apartment building allows the property to both maintain the minimum number of affordable units, while allowing enough space to retain 44 mobile homes.

The Map subdivides the existing parcel to better finance the 61 apartments and 44 mobile homes separately. The total development, between the apartment building and mobile home units, would be 105 units; 40% of units will be provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units would be provided at a rate Item 5
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affordable to households earning 50% AMI and the remaining 20% would be provided at a rate affordable to households earning 80% AMI.3,4
Revisions to the existing regulatory agreement are necessary in conjunction with the redevelopment to reflect the two individual parcels and their respective ownership entities as well as to reflect the necessary affordability requirements for their respective funding sources.

ANALYSIS
Staff from all relevant departments reviewed the Streamlined Housing Development review application for consistency with the municipal code and all other relevant state and federal regulations. The project plans in Attachment G have been reviewed and recommended for approval by all relevant City departments; draft conditions of approval have been incorporated into the draft Record of Land Use Action (Attachment B). Overall, staff finds that the project conforms to plans, policies and guidelines relevant to the proposed project or otherwise requests concessions and waivers in accordance with state regulations.

An analysis of consistency with the Comprehensive Plan, zoning, state density bonus regulations for the proposed SHD application is included in the previous staff report to Council.

This report focuses on the SCCHA’s responses to Council’s direction from June 18, 2024 and provides additional information related to the subdivision map application, which was not summarized in the previous report. The documentation to support a categorical exemption is also complete and a link to this documentation has been provided in Attachment G.

Responses to Council Direction
SCCHA considered modifications to the plans and took actions in response to Council’s direction, as summarized herein. In some cases, SCCHA considered tradeoffs and presents a preferred option based on these tradeoffs. However, in its discretion, the Council may choose to explore these considerations further in a public hearing, which would be scheduled for August 12, 2024.

Tree Preservation Along Los Robles Avenue
An existing Valley Water easement runs along the project frontage on Los Robles Avenue and prohibits planting new trees within the easement. New tree plantings cannot be provided along this portion of the frontage without removing common open space area and/or mobile homes from the mobile home portion of the site. Council therefore asked the SCCHA to further 3 Income limits are based on annual published limits from HCD 4 To avoid displacement of existing tenants, three tenants that currently have an income level that exceeds 80% of AMI will be allowed to continue to rent at the site. Those units are considered as restricted low-income units because the tri-party regulatory agreement requires that future units will be made available to lower income households at affordable rents after any initial moderate or high-income households voluntarily vacate their units.

After any initial moderate or high income households vacate their units, those units will continue be restricted as low-income units with affordable rents for at least an additional 55 years or greater.

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evaluate whether any of the existing trees could be preserved in order to retain greenery along this frontage.

SCCHA identified the trees along this frontage for removal due to impacts associated with utility trenching and the proposed sidewalk. Although sidewalks are not typical in the Barron Park neighborhood, a sidewalk is provided along this frontage to align with the existing conditions on either side of the property and across the street along Los Robles Avenue. Additionally, the sidewalk provides an ADA accessible path to transit to accommodate residents with mobility issues. This is a current issue that was raised by residents at the park.

Through evaluation of the trees and the tradeoffs in response to the Council direction, the SCCHA determined that a total of five trees along the project frontage could be retained through revisions in the design; however, in evaluating the costs, likelihood of survival and other considerations raised by stakeholders, two of these five trees are now shown on the plan for retention.

Specifically, two on-site trees along the project frontage could be retained with revisions to the sidewalk design around the trees. Revisions to the design to accommodate these two trees would result in the loss of two parking spaces within the right-of-way and add approximately $12,500 in cost. Although the protection of these two trees results in a minor increase in cost for the project and the loss of two parking spaces, staff and the SCCHA determined that these revisions were reasonable and feasible to help address competing concerns to retain mature trees where feasible.

The other three trees are street trees. The three street trees (trees 22-24) are located on top of a City sewer line just outside the Valley Water easement and were identified as being in poor health. Revisions to the design to retain these trees would cost approximately $20,000 and would result in the loss of an additional five street parking spaces. Parking at Buena Vista has always been a resident priority and providing these new street parking spaces in addition to the on-site spaces was a way to ease concerns.

Given the current health of the street trees, the City’s arborist believes that the trees may not withstand the work within their tree protection zone even if the project is designed around them. Due to the utility lines running below the tree, which limits growth options and soil volume beneath the tree, it is unlikely that the health of these trees would improve over time.

Therefore, in weighing this understanding with increased project costs and loss of parking spaces the plans have not been revised to retain these three trees.

Increasing the Tree Canopy
The project plans have been updated with several modifications to the arborist report and landscaping plan. In reviewing the plans in more detail following the Council hearing, it was determined that several of the trees that were identified as being removed from the site were not actually planted at the site; rather they were in resident owned planter boxes and were Item 5
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identified for removal as they were being removed by the residents themselves during the relocation period. The arborist report was therefore revised to only reflect trees that are planted at- or surrounding the site. The total number of trees planned for removal at the site (or along the frontage) is 43. To meet the City’s requirements across the entire site, 122 total 24-inch box trees are required to be planted to replace the canopy of these 43 trees. The plans show that 130 total 24-inch box trees would be planted across the site (net increase of 87), exceeding the code requirements and the City‘s no net loss of canopy policy.

Council asked the SCCHA to consider whether additional trees could be planted on the mobile home portion of the site. In response to this request, the landscape architect and the SCCHA reviewed the plans again. Although in most cases trees had already been proposed wherever they could feasibly be planted, the plans have been revised to add one additional tree in the mobile home portion of the site. Two trees that were originally planned for removal will also now be preserved along the frontage, as noted above. The project plans in Attachment G now show a planting plan for the mobile home portion of the site.

The SCCHA also considered whether larger trees could be planted or revisions to the proposed species may result in better shading. The landscape architect indicated that the tree planting sizes and species that were proposed were selected based on their professional opinion on the tree size and species that would be best suited for the growing conditions of that space and therefore most likely to establish quickly and grow well. This took into account considerations such as soil volume as well as the proposed tree’s location with respect to adjacent utilities and planned structures.

In response to a comment raised during the last hearing, the SCCHA also explored adding a tree in the center of the ingress/egress aisle and having the vehicular aisles go around it. However, this option was not feasible because the aisles either serve as emergency vehicle access and cannot have trees in them or are too narrow to allow for two-way traffic and a tree planting area in the middle.

The SCCHA also indicated that they anticipate mobile home residents will plant on their new lots. Each individual mobile home lot includes pervious area intended for planting by residents.

Reducing Heat Island Effect
Council requested consideration of treatments to the surface pavement to reduce the heat island effect, which at least one member of the public noted to be a concern currently at the site. The SCCHA stated that pavement treatments would be prohibitively expensive, anticipating that it would add over $500,000 to the project cost.

However, the proposed site design reduces the amount of impervious area compared to existing conditions (186,732 sf of impervious surface currently is being reduced to 159,679 sf), which also reduces the heat island effect. Pervious areas (e.g., planting and biotreatment areas) and new trees are more evenly distributed across the site and improve the canopy over paved areas, which will reduce the heat island effect. Additionally, the new mobile home units and Item 5
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apartment complex will have cool roofs, as required in accordance with green building code requirements, which require the roofs of structures to meet the minimum solar reflectance and thermal emittance efficiencies or solar reflectance index requirements. These new green building code standards will be met for the proposed project, thus further reducing the heat island effect.

Plan Set Sheet A0.16 in Attachment G includes a graphic showing the proposed impervious areas reductions, improved tree canopy, and cool roof areas.

Reinstating Resident Color Preference
In response to Council direction, the SCCHA revised the apartment building color palette to be more consistent with the residents’ selected preference, as shown in the plan set in Attachment G.

Pursuing Palo Alto Preference
The SCCHA explored the Code of Federal Regulations, relevant case law, and relevant regulations to determine whether a Palo Alto live/work preference for Buena Vista is allowable.

It was determined that due to federal funding on the project, the Department of Housing and Urban Development would require a disparate impact study to be completed in order to determine whether this language could be added to the regulatory agreement. This study could not be fully completed prior to this hearing; therefore, the following tentative language has been added to the regulatory agreement. Prior to executing and recording the regulatory agreement, a disparate impact study would be prepared and, if allowable, this language would remain in Section 7.3 of the regulatory agreement:

Preference for Palo Alto Residents and Employees. In order to ensure that there is an adequate supply of affordable housing within the City of Palo Alto for residents and employees of businesses within the City, to the extent permitted by law and consistent with the program regulations for funding sources used for development of the Project, Owner shall give a preference in the rental of the residential units in the [Apartment Project] [Redeveloped Park] to Eligible Households that include at least one member who lives or works in the City of Palo Alto. Notwithstanding the foregoing, in the event of a conflict between this provision and rules and regulations applicable to the [Apartment Project] [Redeveloped Park], the provisions of such rules and regulations shall control, including, if applicable, any prohibition of preferences for units receiving Section 8 assistance. Owner shall comply with City’s affirmative marketing policies or other rental policies and procedures as they may be amended from time to time to ensure that City residents and people who work in the City of Palo Alto are provided reasonable notice and opportunity to rent units in the Project.

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Making Reasonable Efforts Resolving Disputes Impeding Housing Decisions The SCCHA has engaged with residents to resolve disputes involving housing decisions in a number of ways, including:
•Reconsidering options and looking for ways to equitably meet residents’ preferences and requests;
•Providing updated appraised values to all owners as well as reviewing and considering appraisals that owners obtain from other appraisers;
•Investing in regular multichannel communication, consisting of five large townhall meetings with Spanish translation services), in-person individual meetings with each household where 3rd parties were welcomed (e.g., Law Foundation representative, local pastor, relatives), small workshops on specific topics (e.g., the below-market-rate program, appraisals, the relocation plan, and the annual inspection process), five Q&A documents, holding 16 different open office hours at Buena Vista, and having an ”open door” policy with many emails and phone calls with residents; and •Considering each of the main reasons households do not make a housing selection and meeting with the specific households as well as providing parkwide communication and/or responses in writing to the household on a specific topic.

The SCCHA shared with staff that since the June 18 City Council Study Session, the following progress has been made to provide clear information to Buena Vista residents:
•Final offers, along with updated appraisals have been prepared in both English and Spanish and will be sent out on July 26, 2024 and are expected to be delivered to households by July 29, 2024. Preparation of these packages included, among other efforts, a third-party review
•The SCCHA will begin scheduling one-on-one meetings as soon as residents receive these packages. By the August 5th Council meeting, the SCCHA’s relocation consultant has committed to meeting with as many households as they can to review their offers.

This includes targeted outreach to the 23 undecided households. •Additionally, SCCHA has contacted a third party and is waiting to confirm their ability to support residents of Buena Vista with communication related to disputes standing in the way of decisions.

SCCHA has noted that there are four main reasons some households have not made a housing selection. These include:

1. Wanting larger financial offers,

2. Wanting larger units/more bedrooms,

3. Wanting to split up a single household into multiple households occupying several dwelling units; and

4. Disagreement within the household on the decision and/or wanting to wait until required to make a decision in writing.

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Additional Information:

Larger Financial Offers: The SCCHA is limited in its ability to offer more than the appraised fair market value for a home. The offer needs to be based on an appraisal to ensure equitable treatment of all residents. Offering larger financial offers for certain homes and not others is unfair to the balance of the residents who have accepted their offers based on the appraisals.

Efforts to respond to this have also included:
•Hosting a workshop explaining how the appraisals are done (methodology, use of comparables, etc.) and how, as a government agency, SCCHA is required to use a third- party appraisal to ensure just compensation and fairness. •Considered resident appraisals when provided.

Larger Units: The SCCHA reports that households are counting spaces as bedrooms that are not actual bedrooms in form or function (e.g., hallways and closets) or are adding bedrooms to their units after the initial housing options have been presented. It must treat households equitably and cannot provide some households with larger units without providing other households the same opportunity. Another constraint to providing larger units is cost. On average, each additional bedroom adds about $100,000 to each home’s purchase price, for which the SCCHA notes it has no additional funding.

On a related note, relocation law requires the SCCHA to provide comparable replacement housing. Its program is fully in compliance and in many areas exceeds requirements. The SCCHA efforts to respond to this have also included:
•Touring units to confirm square footage and bedroom count. •Providing data that shows in many cases new units will have more square footage than current units. On average families are receiving more square footage:
o1-bedroom households on average are receiving 66 more square feet. o2-bedroom households on average are receiving 247 more square feet. o3-bedroom households on average are receiving 279 more square feet. •Providing the opportunity, relating to certain requests for reasonable accommodation, for a household to receive a larger unit in the apartment building (e.g., a 2-bedroom owner converting to a 3-bedroom renter).

Splitting into Multiple Households: The SCCHA has remained open to exploring splitting households into multiple new homes because there are several multi-generational households that would like to have grandparents or extended family reside in their own unit. However, the SCCHA did an analysis of all households who have an adult member of the household who is not the head-of-household plus an assumed spouse or partner. The analysis found that the number of extra adults in each household exceeded the number of apartments available. Therefore, a program for splitting households could not be developed fairly. Each household will have the option to apply for a new apartment when they become available although the SCCHA has noted that due to Fair Housing Law, the new household would need to participate in a lottery with other future applicants. The SCCHA efforts to respond to this have also included:

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•Explaining how providing additional units for split households is not possible, given the site constraints and the number of households who find themselves in similar situations. •Encouraging residents to apply for vacant apartments once complete.

Decision Disagreement or Delay: The SCCHA has remained in contact with and offered additional support and information to households experiencing internal disagreements or waiting until required to make a decision in writing. Additionally, the SCCHA reports they have urged these households to reconcile their differences, make an informed and balanced decision and to put their decision in writing.

Overall, the SCCHA has communicated their efforts to resolve these outstanding concerns.

These efforts have included outreach to each household to encourage dialogue and trust building as well as to acknowledge their outstanding issue. In each case, the SCCHA has provided detailed explanations and documentation as to why the housing offer cannot be revised both verbally and in written communications. As of the writing of this staff report, the SCCHA continues to meet with residents on their final individual housing plans, to either affirm housing decisions or assist undecided households in selecting their decisions. The SCCHA expects additional housing decisions to be made as households are presented with their final individual housing plans and offers of compensation.

Vesting Tentative Map
A previous report to the Planning and Transportation Commission summarizes the consistency of the proposed subdivision map with the Comprehensive Plan and municipal code requirements. A copy of that report without attachments is included in Attachment E and the full report is available online.5 The PTC unanimously recommended approval of the Vesting Tentative Map on July 10, 2024. The findings and conditions for approval of the map are included in the draft Record of Land Use Action in Attachment B.

As noted in staff’s presentation during the previous Council hearing, the plans have been revised to reflect the main drive aisle as an ingress/egress easement versus a private street.

Because private streets are deducted from the net lot area, the net lot area used for the purposes of calculating floor area ratio has now increased. Accordingly, the requested concession for additional floor area decreased from 1.0:1 to 0.89:1.

FISCAL/RESOURCE IMPACT
As noted in prior reports, in June 2016, Council authorized expenditure of $14.5 million in affordable housing funds to support the SCCHA’s acquisition of the Buena Vista Mobile Home 5 July 10, 2024 City Council Meeting Staff Report file:///S:/PLAN/PLADIV/Current%20Planning/0%20- %20Application%20Types%20and%20Approvals/Housing%20-
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Park for deed-restricted affordable housing. The redeveloped Buena Vista will have two separate development budgets, one for the mobile home park and one for the proposed apartments. With the State's award of nearly $25 million in Manufactured Housing Opportunity and Revitalization funds, the mobile home park is fully funded. The SCCHA is continuing to work on the financing plan and funding applications for the apartment building and applied for Preservation & Reinvestment Initiative for Community Enhancement funds in June and intends to submit an application for tax credits in late August. In order to be competitive for tax credits, entitlements for the project must be complete.

No additional funding is requested from the City at this time. The formal application is a cost recovery project and the SCCHA has paid the required deposit fee in accordance with the municipal fee schedule for processing of this application. Staff is presenting this report for Council approval at this time to help the SCCHA meet their funding deadline. The additional items requested by Council in June 2024 do not result in funding requests for the City though some have added costs to the SCCHA project budget.

STAKEHOLDER ENGAGEMENT
As detailed in prior reports, community engagement has included workshops, tours, newsletters FAQS, website updates, and community-building events. Additionally, resident engagement has had a direct influence on design of the redevelopment.

Public Comments
Previous comments on the project were summarized in the Council staff report. At the Council hearing in June 2024, four members of the public provided additional comments on the proposed project. Key comments from these four commenters included:
•One resident who lived on site encouraged changing the design to be exclusively rental •The owner of the property across Los Robles requested access driveway be moved to a different location
•One resident raised a question of a conflict of interest from an individual councilmember and asked for additional protections to ensure that the mobile homes are not removed
•One resident spoke on behalf of a group of herself and five other residents expressing support for the project, asking for a Palo Alto live work preference, asked for more trees, expressed disappointment that the color palette did not reflect the resident’s preference, stated that street naming is important. She also questioned the hard deadline for declaring a choice and about transport during relocation.

Council’s disclosures and discussion on June 18, 2024 touched on the comments raised during the public comment period and Council’s motion reflected a request for further consideration of trees, the color palette, a Palo Alto live work preference, and further outreach efforts related to relocation choices accordingly.

Item 5
Item 5 Staff Report

Item 5: Staff Report
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Valley Water
Given the existing infrastructure and easement along the project frontage, Valley Water is an important stakeholder in this project as well. Staff has discussed the proposed plans with Valley Water as they relate to work within their easement. Ultimately, refinements to the utility laterals across their easement may be needed at the building permit stage. As a condition of approval, the City’s waste-gas-water division will require potholing to confirm the in-field, as- built conditions of the infrastructure. This pre-construction work will require an encroachment permit from Valley Water. The results of the potholing will better inform the final design of the laterals, which will need to comply with Valley Water’s requirements. As outlined in the planning conditions of approval, an encroachment permit from Valley Water is required prior to any temporary or permanent work within their easement, including all above and below grade work.

ENVIRONMENTAL REVIEW
The project has been assessed in accordance with the Authority and the criteria of the California Environmental Quality Act. Specifically, the City, acting as the lead agency, finds the project to be exempt from CEQA in accordance with CEQA Guidelines Section 15332, which provides an exemption for infill development. Documentation to support the class 32 exemption is provided in Attachment G. The CEQA analysis considers the whole of the action, including the subdivision and redevelopment of both resulting parcels.

Because this project involves federal programs, it must also be evaluated under the National Environmental Policy Act (NEPA). The City is serving as the Responsible Entity (RE) for NEPA in accordance with federal requirements. The Department of Housing and Urban Development will serve as the lead agency under NEPA. As the RE, the City is responsible for preparing the NEPA evaluation. An Environmental Assessment is being prepared in accordance with NEPA and is required to be complete prior to the release of any federal funds for the project. NEPA is not required for approval of planning entitlements.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: 2017 Regulatory Agreement
Attachment D: Proposed Regulatory Agreements and Termination Agreement for Existing Regulatory Agreement
Attachment E: Staff Report to Planning and Transportation Commission for Subdivision Map Attachment F: Project Description and Waiver Justification Attachment G: Project Plans and Environmental
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 5
Item 5 Staff Report

Item 5: Staff Report
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MACLANEWILKIE WAYEL CAMINO WAYEL CAMINO REAL

VENTURA AVENUEEL CAMINO REALEL CAMINO REALEL CAMINO REALLA SELVA DRIVEMAGNOLIA DRIVE SOUTHVILLA VERAVILLA REAL (PRIVATE)VILLA VISTA (PRIVATE)LOS ROBLES AVENUELA DONNA AVENUECAMPANA DRIVEENCINA GRANDE DRIVEVERDOSA DRIVEVISTA AVENUEWISTERIA LANEVILLA VISTA (PRIVATE)DRISCOLL PLACECAMPANA DRIVEVERDOSA DRIVE

CYPRESS LANE JACOBS COURT (PRIVATE)A DRIVEEL CAMINO REALEL CAMINO REALEL CAMINO REAL RM-20
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KEYS SCHOOL MIDDLE CAMPUS
This map is a product of the
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Attachment A:Location Map

CITY OF PALO ALTOINCORPORATEDCALIFORNIA
P a l o A l t o
T h e C i t y o f
APRIL 16 1894
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ACTION NO. 2024-__

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3980 El CAMINO REAL: STREAMLINED HOUSING DEVELOPMENT AND VESTING TENTATIVE MAP [24PLN-00041]
At its meeting on _________, 2024, the City Council of the City of Palo Alto (“City Council”) approved the Streamlined Housing Development Review for a 61-unit residential rental development and Vesting Tentative Map for the development of a subdivision to create two lots, making the following findings, determinations and declarations:

SECTION 1. Background.

A. On February 15, 2024, Santa Clara County Housing Authority (SCCHA) applied for a Streamlined Housing Development Review application for a 61-unit residential rental development, including the following density bonus waivers and concessions in accordance with state density bonus law:
•Density Bonus: 80% increase in density from 20 du/ac to 36 du/ac •Concession 1: Façade Breaks
•Concession 2: Ground Floor Unit Direct Connection to Path or Common Open Space
•Concession 3: Percentage of Frontage Dedicated to Utilities and Parking •Concession 4: Private Open Space (None where 50 sf per unit is required) •Waiver 1: Floor Area Ratio (1.01:1 where 0.5:1 is allowed) •Waiver 2: Height (37 feet where 30 feet is allowed)
•Waiver 3: Site Open Space (24% where 35% is required)
•Waiver 4: Tree Canopy Cover in Parking Lot (future coverage of 47% where 50% is required)
•Waiver 5: Reduction in Street Trees (none provided along the mobile home project frontage [due to Valley Water easement restrictions] where one per every 30 feet is required.

B. On April 30, 2024, SCCHA applied for a Vesting Tentative Map for the development to subdivide one (1) existing 4.5-acre lot into two parcels (1.69-acres and 2.81 acres). The 61-unit apartment complex would be developed on the resulting 1.69-acre parcel; the 2.81-acre parcel would be redeveloped with 44 mobile home units, which would be processed through the state (“The Project”).

C. The project site is comprised of one existing lot (APN No. 127-11-103) of approximately 4.5 Acres (196,020 sf). The site contains a multi-family development with seventy-nine (79) residential units, seventy-five (75) of which are occupied. Single family Item 5
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residential uses abut the site to the north. Multi-family residential units abut the site to the west, and across Los Robles Avenue to the South. Commercial uses abut the site to the east along El Camino Real.

D. Following submittal of the application, Council held a study session on March 4, 2024 to provide early input on the proposed development and to provide an opportunity to hear comments from the public.

E. Following staff review, the Architectural Review Board reviewed the project at a study session on May 2, 2024, to provide feedback on the design for the streamlined housing development review application.

F. Following the Architectural Review Board hearing, the applicant resubmitted revised plans for the streamlined housing development review application on May 29, 2024.

G. Following staff review of the Vesting Tentative Map, the Planning and Transportation Commission reviewed the project and recommended approval on _____, 2024, subject to conditions of approval.

H. On June 18, 2024 the City Council held a duly noticed public hearing, at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures.

I. On ___________, 2024 the City Council held a duly noticed public meeting at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures SECTION 2. Environmental Review. The City, acting as the lead agency for the Project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guideline section 15332, which provides an exemption for infill development projects. Documentation to support the exemption is available as part of the public record on file with the Planning and Development Services Division.

SECTION 3. Streamlined Housing Development Review. The design and architecture of the proposed improvements, as conditioned, complies with the Streamlined Housing Development Project Review Process Findings as required in Chapter 18.77.073 of the PAMC. Neither the Director, nor the City Council on appeal, shall approve an application unless it is found that:

Finding #1: The application complies with all applicable and objective standards in the Comprehensive Plan, the Palo Alto Municipal Code, and other City plans or policies.

The proposed project complies with all applicable and objective standards in the Comprehensive Plan and the Palo Alto Municipal Code as detailed in the Council staff report Item 5
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(Staff report ID #______) except where waivers or concessions are requested pursuant to state density bonus law. In accordance with The Housing Accountability Act as set forth in California Government Code 65589.5(j)(3), the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. Therefore, for the project is compliant with the objective standards.

A summary of the project’s consistency with the Comprehensive Plan is provided in this table.

The project is required to comply with the Comprehensive Plan to the extent that the requirements are objective.

Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan
The Comprehensive Plan land use
designation for the site is Multi-family
Residential which allows for densities ranging
from 8 to 40 units per acre
The project adheres to the Comprehensive
Plan by providing multi-family housing on a
multi-family use site. The proposed density is
36 units per acre which is consistent with this
comprehensive plan land use designation.

Housing Element
Policy 4.3 Implement development
standards, objective design standards, and
architectural and green building standards
that encourage new high-quality rental and
ownership housing.

The project complies with the implemented
standards except where requests for waivers
or concessions in accordance with state
density bonus law is provided. The project
provides the necessary upgrades to
deteriorating infrastructure on the site and
updates to the units to provide new high-
quality rental and ownership units while
maintaining the affordability level.

Land Use and Community Design Element
Policy L-2.8: When considering infill
development, work to minimize the
displacement of existing residents
The project is an infill project. A full
relocation plan has been presented to all
tenants and creates options for ownership or
rental. The project replaces more units than
it removes.

Policy L-9.2 Encourage development that
creatively integrates parking into the project,
including by locating it behind buildings or
underground wherever possible, or by
providing for shared use of parking areas.

Encourage other alternatives to surface
parking lots that minimize the amount of
While the project proposes surface parking,
the parking is located at the side of the
building and is not located between the
building and the street. The frontage is still
provides a sidewalk and bike lane and
provides street trees and other greenery
along the frontage.

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land devoted to parking while still
maintaining safe streets, street trees, a
vibrant local economy and sufficient parking
to meet demand.

Policy L-9.4 Treat residential streets as both
public ways and neighborhood amenities.

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

The project includes a new sidewalk and
street trees as well as new bicycle parking
within the project setback area that
promotes active transportation. This
improves the current design, which provides
parking along the project frontage and does
not include a sidewalk.

Transportation Element
Policy T-3.7 Encourage pedestrian-friendly
design features such as sidewalks, street
trees, on-street parking, gathering spaces,
gardens, outdoor furniture, art and
interesting architectural details.

The project includes direct connections to
the sidewalk that help to activate the
frontage along Los Robles Avenue in addition
to new street trees and plantings.

Policy T-3.9 Support citywide sustainability
efforts by preserving and enhancing the tree
canopy where feasible within the public
right-of-way, consistent with the Urban
Forest Management Plan, as amended.

The project meets the tree canopy
replacement requirements through on site
planting. The project includes removal of two
trees and replaces with 24 new trees where 7
24-inch box trees are required in accordance
with the canopy replacement requirements.

Finding #2: Approving the application will not result in a specific, adverse, impact upon the public health or safety, which cannot feasibly be mitigated or avoided in a satisfactory manner.

As used in this Section, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

The proposed project would not result in a specific, adverse, impact upon public health or safety. The project complies with all applicable safety requirements with respect to fire safety for the building itself (e.g. ladder access, sprinklers) as well as emergency vehicle access to the site. The project also does not introduce any new changes to streets (e.g. new curves in a roadway) or impacts to line-of-sight that would create a safety hazard.

SECTION 4. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons:

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

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

2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans:

There is no adopted specific plan for this project site. The proposed vesting tentative map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The proposed density (36 DU/AC) is consistent with the allowable density (20 to 40 DU/AC) in the multi-family land use designation as outlined in the Land Use Element. The project replaces 79 existing residential ownership and rental units with 61-residential rental units and 44 residential ownership units. The project would be 100% affordable with 40% of units provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units provided at a rate affordable to households earning 50% AMI and the remaining 20% provided at a rate affordable to households earning 80% AMI. The project improves the city’s jobs housing imbalance consistent with the Transportation Element’s goals and policies.

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

The Project site is suitable for multi-family residential development in that it’s located within the multi-family zone district on a site designated on the City’s Land Use Map for multi-family use. The proposed resulting parcels meet the minimum code requirements for the RM-20 zone district with respect to lot area, width and depth. The proposed number of condominium units for one of the two parcels complies with the applicable densities set forth in the land use element.

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

The proposed development of both parcels would create a total of one-hundred and five (105) multi-family residential units which is 23 dwelling units (DU) per acre (total project site is 4.5 acres). This density complies with the minimum and maximum allowable residential density as calculated for the total site area under the comprehensive plan (20-40 DU/acre = 90-180 DU).

The newly created parcel for the rental units would have a density that exceeds the maximum allowable density for the zoning (20 DU/AC) in accordance with state density bonus law (Assembly Bill 1763) which allows for increased density based on the percentage of BMR units (80% of the base project) and their affordability level. Building, Palo Alto Fire Department, Planning, Transportation, Zero Waste, and Public Works Engineering have reviewed the requested density bonus waiver to permit a minimum 28-foot street width to ensure that all necessary requirements for safety, including but not limited to, fire safety and traffic safety Item 5
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(e.g. curb cut location, turning radius, etc.) have been met as well as to ensure that the street allows for proper function of the site (e.g. trash pickup).

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

The project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. An easement along the project frontage contains Barron Creek within an existing underground culvert pipe. An encroachment permit from Valley Water is required as a condition of approval of the project to ensure that the proposed work does not impact the existing infrastructure. The adopted Palo Alto 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species.

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

The subdivision of this parcel and associated improvements would not have the potential to result in serious health problems. The proposed multi-family use would not include use or storage of hazardous materials and the use is located within the urban environment adjacent to other residential uses. The site is not located on a hazardous waste site pursuant to government code 65962.5.

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

There are no public access easements over the property currently. Therefore, the design of the subdivision will not conflict with any public easements for access through, or use of, the property. Existing public utility easements would be vacated and new public utility easements created as part of the mapping process to reflect modifications to the location of utility infrastructure. A new public access easement would be granted over a portion of the frontage for public access on the proposed new sidewalk. An existing Valley Water easement would be Item 5
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maintained along the frontage and any temporary or permanent improvements within that area requires an encroachment permit from valley water prior to building permit issuance.

SECTION 5. Vesting Tentative Map Approval Granted. Vesting Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 8 of this Record of Land Use Action.

SECTION 6. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map prepared by Sandis Engineering titled “Vesting Tentative Map For a Two Lot Subdivision,” consisting of three pages, stamped as received July 1, 2024, except as modified to incorporate the conditions of approval in Section 8. A copy of the Vesting Tentative Map is on file in the Department of Planning and Development Services, Current Planning Division. Prior to the expiration of the Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section

21.16.010[a]).

SECTION 7. Conditions of Approval Streamlined Housing Development Review.

PLANNING DIVISION

1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” stamped as received by the City on June 3, 2024 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval.

2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments.

3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit.

4. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention.

5. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary. Landscaping along the rear lot Item 5
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line between the project and single-family residential uses shall be planted at a minimum height of 8 feet and maintained as a landscape screen for the life of the project in accordance with the code requirements for objective standards.

6. NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section

9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane.

7. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise.

8. NOISE REPORT AT BUILDING STAGE. An analysis of the proposed project’s compliance with the City’s noise requirements for the proposed HVAC was prepared as part of the documentation to support a Class 32 categorical exemption. At the time of building permit issuance for new construction or for installation of any such mechanical equipment, if the proposed equipment exceeds the anticipated noise level that was analyzed or is proposed in a location that is closer to the property line, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Noise Ordinance. The analysis shall be based on acoustical readings, equipment specifications and any proposed sound reduction measures, such as equipment enclosures or insulation, which demonstrate a sufficient degree of sound attenuation to assure that the prescribed noise levels will not be exceeded.

9. VALLEY WATER ENCROACHMENT PERMIT. An encroachment permit is required prior to any temporary work or permanent improvements within Valley Water’s easement. The project shall comply with any and all requirements of the encroachment permit.

10. PUBLIC ACCESS EASEMENT. A public access easement shall be required for the proposed sidewalk on private property. This may be dedicated through separate instrument and documented on the tentative map and final map or it may be recorded through the subdivision map process.

11. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs, if proposed, shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning.

12. STANDARD REQUIREMENTS FOR UNANTICIPATED DISCOVERY OF BURIED ARCHEOLOGICAL RESOURCES. No known archeological resources are present on or within the immediate vicinity of the site. However, as noted in the project description and per the City’s standard conditions, in the unlikely event that an archeological resource is unearthed during ground disturbing activities, work in the immediate area should be halted and an archaeologist meeting the Secretary of the Interior’s Professional Qualifications Standards for archeology Item 5
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(National Park Service 1983) shall be contacted immediately to evaluate the find. If the find is Native American in origin, then a Native American representative should also be contacted to participate in the evaluation of the find. The qualified archaeologist, and, if applicable, the Native American representative, shall examine the find and make recommendations regarding additional work necessary to evaluate the significance of the find and the appropriate treatment of the resource. Recommendations could include, but are not limited to, invasive or non-invasive testing, sampling, laboratory analysis, preservation in place, or data recovery. A report of findings documenting any data recovered during monitoring shall be prepared by a qualified archaeologist and submitted to the Director of Planning.

13. STANDARD REQUIREMENTS FOR THE PROTECTION OF NESTING BIRDS. As detailed in the project description and per the City’s standard conditions, vegetation or tree removal shall be prohibited during the general avian nesting season (February 1 – August 31), if feasible.

If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the project site no more than 14 days prior to scheduled vegetation clearance and/or demolition activities. If nesting birds are found to be present, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for raptors) as determined appropriate by the biologist, shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest).

14. STANDARD REQUIREMENTS FOR PM10 AND PM2.5 EMISSIONS. The following conditions shall be implemented during all phases of construction to control dust and exhaust at the project site in compliance with the Comprehensive Plan Policy N-5.5:
•Water all exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) two times per day.
•Cover all haul trucks transporting soil, sand, and other loose material off-site. •Remove all visible mud or dirt track out onto adjacent public roads at least once per day using wet power vacuum street sweepers. The use of dry power sweeping is prohibited.
•Limit all vehicle speeds on unpaved roads to 15 miles per hour. •Pave all new roadways, driveways, and sidewalks as soon as possible. •Lay building pads as soon as possible after grading unless seeding or soil binders are used.
•Suspend all excavation, grading, and/or demolition activities when average wind speeds exceed 20 miles per hour.

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•Wash off all trucks and equipment, including their tires, prior to leaving the site. •Post a publicly visible sign with the name and phone number of an on-site construction coordinator to contact regarding dust complaints. The on-site construction coordinator shall respond and take corrective action within 48 hours. The sign shall also provide the City’s Code Enforcement Complaints email and number and the Air District’s General Air Pollution Complaints number to ensure compliance with applicable regulations.

15. CONSTRUCTION EQUIPMENT. All construction equipment larger than 25 horsepower used at the site for more than two continuous days or 20 hours total shall meet U.S. EPA Tier 4 Final emission standards for particulate matter (PM10 and PM2.5), if feasible. If Tier 4 Final equipment is not available for a particular piece of equipment, then use equipment that meets U.S. EPA emission standards for Tier 3 engines and include PM emissions control equivalent to CARB Level 3 verifiable diesel emission control devices that altogether achieve an 80 percent reduction in PM exhaust in comparison to uncontrolled equipment.

16. VIBRATION ANALYSIS. Prior to issuance of a demolition permit, a list of all heavy construction equipment to be used for this project known to produce high vibration levels (e.g., tracked vehicles, vibratory compaction, jackhammers, hoe rams, clam shovel drop, and vibratory roller, etc.) shall be submitted to the City by the contractor. This list shall be used to identify equipment and activities that would potentially generate substantial vibration and to define the level of effort for reducing vibration levels below the thresholds. •Smaller equipment (less than 18,000 pounds) shall be used near the property lines adjacent to sensitive buildings to minimize vibration levels to 0.3 in/sec PPV or less. For example, a smaller vibratory roller similar to a Caterpillar model CP433E vibratory compactor could be used when compacting materials within 20 feet of the adjacent conventional building. The smaller equipment intended to implement this requirement shall be individually identified among the list of equipment required under the above condition as the subset of equipment allowed for use at the property lines.
•Select demolition methods that do not involve large impact tools such as hoe- rams within 20 feet of the adjacent conventional building. Portable jackhammers, saws, or grinders shall be used to minimize impacts to the ground. •Avoid dropping heavy equipment and use alternative methods for breaking up existing pavement, such as a pavement grinder, instead of dropping heavy objects, within 20 feet of the adjacent conventional building. •Designate a Disturbance Coordinator responsible for registering and investigating claims of excessive vibration. The contact information for the responsible party shall be clearly posted on the construction site.

17. TREE CANOPY REPLACEMENT. Replacement of the tree canopy for the two trees proposed Item 5
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to be removed is required in accordance with Chapter 8 of the municipal code and the City’s Tree Technical Manual.

18. REFUSE. All trash areas shall be covered and maintained in an orderly state within private garages to prevent water from entering into the garbage container. No outdoor storage is allowed/permitted except when brought out to the street for pickup as shown in the plan set.

Trash areas shall be maintained in a manner to discourage illegal dumping.

19. BELOW MARKET RATE (BMR) HOUSING. This project is proposed as a state density bonus project and is subject to a tri-party regulatory agreement between the City of Palo Alto, County of Santa Clara, and Santa Clara County Housing Authority. The project shall conform to the approved regulatory agreement, which shall be recorded prior to issuance of building permit or final map, whichever occurs first. All BMR units constructed under this condition shall be in conformance with the City’s BMR Program rules and regulations.

Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement.

20. RENTER PROTECTIONS. The project is subject to the renter protection requirements set forth in PAMC Section 9.68.050. The applicant shall implement the relocation for existing residents in accordance with the proposed relocation plan as guaranteed in Section 5 of the regulatory agreement, which meets or exceeds these City requirements.

21. ESTIMATED IMPACT FEE. Because the housing is a 100% affordable housing project, development impact fees, citywide transportation impacts fees, and public art in private development fees, do not apply.

22. ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If within such two-year period, the proposed use of the site or the construction of buildings has not commenced, the Planning entitlement shall expire. Application for a one-year extension of this entitlement may be made prior to expiration.

23. FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Claire Raybould at [email protected] to schedule this inspection.

24. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the Item 5
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City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

PUBLIC WORKS ENGINEERING

25. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits

26. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.

27. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.

28. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter 16.28.

The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note or similar: “THIS GRADING

PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR

REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”

29. ROUGH GRADING. provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), tree protection measures, etc.

30. CIVIL ENGINEER CERTIFICATION. Upon completion of the rough grading work and at the final completion of the work, applicant shall provide an as-graded grading plan prepared by the civil engineer that includes original ground surface elevations, as-graded ground surface elevations, lot drainage patterns and locations and elevations of all surface and subsurface drainage facilities. The civil engineer shall certify that the work was done in accordance with the final approved grading plan.

31. SOILS ENGINEER CERTIFICATION. Upon completion of the rough grading work and at the final completion of the work, applicant shall provide a soil grading report prepared by the Item 5
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soils engineer, including locations and elevation of field density tests, summaries of field and laboratory tests and other substantiating data, and comments on any changes made during grading and their effect on the recommendations made in the soils engineering investigation report. The soils engineer shall certify as to the adequacy of the site for the intended use.

32. GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN

REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.

33. SWPPP. This proposed development will disturb more than one acre of land. Accordingly, the applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post-development project design features and temporary measures employed during construction.

34. ENCROACHMENT PERMIT. Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

35. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

36. STORMWATER POLLUTION PREVENTION. All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

37. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third- party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

38. SUBMIT THE FOLLOWING:
a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP.

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b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

39. C.3 STORMWATER AGREEMENT. The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.

40. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY. Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.16.

41. EXISTING EASEMENTS: Provide documentation showing approval from the entities affected by the onsite easements to verify that the work within said easements is permitted.

42. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint “No Dumping/Flows to Barron Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan.

WASTE-GAS-WATER UTILITIES
The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, or Encroachment Permit:

43. The applicant must pothole and submit profiles of the water & fire services and wastewater lateral installations crossing the existing 66” storm line meeting the California Plumbing Code, CPAU WGW design standards, and Santa Clara Valley Water District (SCVWD) design standards to SCVWD for review and approval. SCVWD approved design must be provided to CPAU WGW Engineering prior to submittal for any building, grading, or street permits (except permits for exploratory potholing).

Design changes to the proposed city water/fire/irrigation services and/or sewer laterals and/or the onsite water and sewer system and/or off-site/on-site grading may be required based on the in-field, as built conditions of Valley Water infrastructure.

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PRIOR TO ISSUANCE OF DEMOLITION PERMIT (if required)

44. The applicant shall submit a request to disconnect utility services and remove meters. The utilities demo to be processed within 10 working days after receipt of request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. The existing water meter boxes and boxes for city clean-outs must be protected in place until the services are disconnected at the mains during the new service installations.

FOR BUILDING PERMIT

45. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain).

46. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks.

Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water and gas.

47. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc).

48. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals

49. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive.

The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans.

50. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD.

WD-12A or STD. WD-12B) is required for all existing and new fire water connections from Item 5
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Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5’ (feet) of the property line or City Right of Way.

51. All backflow preventer devices shall be approved by the WGW engineering division.

Inspection by the city inspector is required for the supply pipe between the meter and the assembly.

52. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation.

53. All existing water, gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards.

54. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10’ of existing trees.

Maintain 10’ between new trees and new water and wastewater services/laterals/meters.

55. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation.

56. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater.

PUBLIC WORKS ELECTRIC UTILITIES

57. UTILITY EASEMENT REQUIRED. Prior to energization, a public utility easement is required to provide access to the proposed transformers. This can either be provided through separate instrument and documented on the tentative and final map or dedicated through the tentative and final map process.

58. UTILITIES APPLICATION. Changes to existing electric utilities equipment on site, such as the transformer, will require a utilities application. Submit a utilities application and obtain City of Palo Alto Utilities Electrical Engineering approval for the modifications to the electrical system.

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59. UTILITY DISCONNECT. The applicant shall submit a request to disconnect all existing utility services proposed for removal, including a signed affidavit of vacancy, on the form provided by the Building Inspection Division. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and, as applicable, removed.

60. UTILITIES SHOWN ON LANDSCAPE PLANS. All utility meters, lines, transformers, backflow preventers, and any other required equipment shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials.

In addition, all aboveground equipment shall be screened in a manner that is consistent with the building design and setback requirements.

61. PERMIT. Contractors and developers shall obtain permit from the Department of Public Works before digging in the street right-of-way. This includes sidewalks, driveways and planter strips.

62. UNDERGROUND SERVICES ALERT. At least 48 hours prior to starting any excavation, the customer must call Underground Service Alert (USA) at 1-800-227-2600 to have existing underground utilities located and marked. The areas to be checked for underground facility marking shall be delineated with white paint. All USA markings shall be removed by the customer or contractor when construction is complete.

63. CITY STANDARDS. All new underground conduits and substructures shall be installed per City standards and shall be inspected by the Electrical Underground Inspector before backfilling.

PUBLIC WORKS ZERO WASTE

64. REQUIRED DECONSTRUCTION. In conformance with PAMC 5.24, deconstruction and source separation are required for all residential and commercial projects where structures (other than a garage or ADU) are being completely removed, demolition is no longer allowed.

Deconstruction takes longer than traditional demolition, it is important to plan ahead. For more information, visit www.cityofpaloalto.org/deconstruction.

65. SALVAGE SURVEY FOR REUSE. A Salvage Survey is required for deconstruction permit applications. The survey shall be conducted by a City approved reuse vendor. The survey submittal shall include an itemized list of materials that are salvageable for reuse from the project. The applicant shall source separate and deliver materials for reuse. Certification is required indicating that all materials identified in the survey are properly salvaged. Contact The ReUse People to schedule this FREE survey by phone (888) 588-9490 or e-mail [email protected]. More information can be found at www.TheReusePeople.org.

Please upload a completed copy to the deconstruction permit.

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66. SOURCE SEPARATION FOR RECYCLING. The applicant shall source separate deconstruction materials into specific categories for recycling. Additional staging areas for source separated materials will need to be considered. All materials shall be delivered to one of the City approved materials recovery facilities listed in Green Halo, all records shall be uploaded to www.greenhalosystems.com. For more information, refer to www.cityofpaloalto.org/deconstruction.

PUBLIC WORKS WATER QUALITY

67. Stormwater Best Management Practices (BMPs) associated with refuse management (including actions related to refuse pick-up and the enclosure itself) shall be followed to ensure pollution prevention and preventing potential discharges to the City’s storm drain system. Stormwater BMPS include, but are not limited to, power washing the pavement on both the private property and in the right-of-way and sidewalk a minimum of once per year before the wet season begins on October 1st; utilizing a power washing contractor that is a Recognized Surface Cleaner by the Bay Area Stormwater Management Agencies Association (BASMAA); disposing of wash water according to the Recognized Surface Cleaner certification requirements; and removing any potential trash build-up on a regular basis.

PUBLIC WORKS URBAN FORESTRY

68. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall be revised to reflect the following:
a. Include quantities of each tree species in the planting schedule with a corresponding abbreviation of the species which can be found on the planting plan.
b. The final species selection during Building permit phase must maximize the canopy by replacing the proposed Acer rubrum columnar with a non- fastigiate tree species.

69. MWELO COMPLIANCE. As part of the building permit, provide the proposed square footage of the rehabilitated landscape to determine if the project requires a MWELO compliance review. Please see the document titled “Model Water Efficient Landscape Ordinance (MWELO) Compliance Submittals and Guidelines”
(https://cityofpaloalto.org/civicax/filebank/documents/76159) to determine if the project qualifies for MWELO Review. If a MWELO review is required, please follow the instructions in the above document when submitting your permit application and plan set.

DURING CONSTRUCTION

63. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a Item 5
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preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor.

64. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC

8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City ([email protected]) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11.

65. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor.

Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section

2.25. 66. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival.

67. NO NET LOSS OF CANOPY. In order to comply with the city’s no net loss of canopy policy (Urban Forest Master Plan: Goals 6.A, 6.B & 6.C & Comprehensive Plan Natural Environment Chapter: Goal N-2 and others) all trees 4” DBH and larger are subject to replacement to avoid a loss of canopy at the neighborhood level. Replacement ratios are determined by table 3-1 in the Tree Technical Manual (Section 3.20.C). New landscape tree plantings (24” box or larger) count towards the replacement total. Screening trees may also count toward the total depending on size and species selected. If unable to plant the required number of trees on site (our preferred solution) there is the option of paying in-lieu fees of $650 per each 24” box tree into the forestry fund.

POST CONSTRUCTION

68. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be Item 5
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replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery.

SECTION 8. Conditions of Approval Vesting Tentative Map.

PLANNING

1. PROJECT PLANS. The Vesting Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map titled “Vesting Tentative Map 739 Sutter Avenue For Condominium Purposes City of Palo Alto, California”, prepared by BKF Engineers and submitted February 23, 2024, except as modified to incorporate the conditions of this approval.

2. FINAL MAP COVER PAGE. At such time as the Final Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services.

3. STANDARD CC&R REQUIREMENTS. Section 16.38 of Palo Alto’s Municipal Code provides that all condominium and other “community housing projects” shall submit Covenants, Conditions and Restrictions (CC&R’s) to the City Attorney for approval before issuance of the Final Map. The City Attorney has developed the following standard covenants which shall be included in all CC&R’s.
a. PROPERTY SHALL COMPLY WITH CITY ZONING ORDINANCES. The property, including all common areas within the property, shall at all times comply with the City’s Zoning Code and shall not be used for any purpose other than as permitted in the City Zoning Code. b. MODIFICATIONS TO PROPERTY. Any alterations, modifications, or other improvements to the property shall comply with all applicable City Codes. c. MAINTENANACE AND LANDSCAPING OF COMMON AREAS. The Association is responsible for maintenance and landscaping of all parts of the community housing project which are held in common and such maintenance shall be performed to the standard of maintenance prevalent in the neighborhood. (See PAMC Section

16.38.030(a)).
d. TERMINATION OF MANAGER OR MAINTENANCE CONTRACTS. The association may terminate the contract of any person or organization engaged by the developer to perform management or maintenance duties three months after the association assumes control of the community housing project or any time thereafter. (See PAMC Section 16.38.030(b).)
e. PROTECTION OF STORM WATER FACILITIES. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall alter or modify any storm water facilities in any way including but not limited to Item 5
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placing, maintaining, constructing, or planting any improvements, landscaping or other items, including without limitation decks, stairs, walls, irrigation systems, trees, or any vegetation on any storm water facilities.
f. TRASH DISPOSAL AND RECYCLING AREAS SHALL COMPLY WITH CITY ORDINANCES. All trash disposal and recycling areas shall be kept in a clean and sanitary condition and shall comply with all applicable City Ordinances.
g. PROHIBITION AGAINST AIR AND WATER POLLUTION. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall use the property in any way which emits pollution into the atmosphere in excess of environmental standards set forth by City, State, and Federal laws, ordinances, and regulations. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall discharge garbage, trash, waste, or any other substance or materials of any kind into any private or public sewer or waterway on the property in violation of any regulations of any private or public body having jurisdiction over such matters. h. AMENDMENTS TO ORGANIZATION DOCUMENTS REQUIRE CITY APPROVAL. Any amendments or modifications to the organizational documents shall be submitted to the city attorney for approval. No amendment or modification to the organizational documents shall be effective without prior written consent of the city attorney. i. CITY’S RIGHT TO ENFORCE COVENANTS AND RESTRICTIONS. The City is hereby granted the right, but in no event the duty, to enforce the covenants and restrictions set forth in this section of the organizational documents. The association shall recognize that it has the primary responsibility for enforcement of the organizational documents and unequivocally guarantees to institute and expeditiously prosecute any required legal action to obtain compliance with all provisions set forth in the organizational documents.
j. NO WAIVER OF CITY’S RIGHTS. No failure of the City to enforce any of the covenants or restrictions contained in the organizational documents will in any event render them ineffective.
k. CITY’S REMEDIES TO CURE A BREACH OR VIOLATION. Remedies available to the City to cure any breach or violation of the organizational documents shall be cumulative to any other provisions of law. The City’s failure to exercise any remedy provided for in the organizational documents shall not, under any circumstances, be construed as a waiver of the remedy.
l. SEVERABILITY. Invalidation of any one of the City’s required covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

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6. FINAL MAP EXPIRATION. A Final Map, in conformance with the approved Vesting Tentative Map, all requirements of the Subdivision Ordinance (PAMC Section 21.16), and to the satisfaction of the City of Palo Alto and its representatives, shall be filed with the Planning Division and the Public Works Engineering Division within two years of the Vesting Tentative Map approval date or this approval will expire. A one-year extension may be granted in accordance with the allowances set forth in the municipal code.

7. DEVELOPMENT IMPACT FEES. The Property Owner or their designee shall pay all applicable development impact fees associated with the proposed development and subdivision prior to issuance of the building permit(s), as detailed in the Streamlined Housing Development Review Approval.

8. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

PUBLIC WORKS ENGINEERING

9. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits

10. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.

11. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.

12. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter 16.28.

The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: “THIS GRADING PERMIT

WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.” Item 5
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13. GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN

REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.

14. SWPPP. If the proposed development will disturb more than one acre of land. The applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post- development project design features and temporary measures employed during construction.

15. ENCROACHMENT PERMIT. Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

16. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

17. STORMWATER POLLUTION PREVENTION. All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

18. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third- party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

Submit the following:
a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP. https://scvurppp.org/wp-content/uploads/2023/04/SCVURPPP-C.3-Data-Form- _-updated__4-12-2023_clean_fillable.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

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19. C.3 STORMWATER AGREEMENT. The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.

20. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY. Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.

21. IMPERVIOUS SURFACE AREA. The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan.

22. EXISTING EASEMENTS. Provide documentation showing approval from the entities (such as Valley Water) affected by the onsite easements to verify that the work within said easements is permitted.

23. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO). The applicant is required to paint “No Dumping/Flows _________Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan.

24. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (RECORD DRAWINGS). At the conclusion of the project applicant shall provide digital as-built/record drawings of all improvements constructed in the public right-of-way or easements in which the City owns an interest.

SECTION 9. Terms of Approval.

1. Streamlined Housing Development Review. In the event actual construction of the project is not commenced within two years of the date of council approval, the approval shall expire and be of no further force or effect.

2. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings Item 5
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0160150_kb2_20240724_ay
shall terminate. An extension of time may be granted by the city council after recommendation of the planning commission, upon the written application of the subdivider, prior to the expiration of the Vesting Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ ___________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
PLANS AND DRAWINGS REFERENCED:

Those plans prepared by Van Meter Williams Architects titled “Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” consisting of 94 pages, dated and submitted July 19, 2024.

Those plans prepared by Sandis Engineers titled “Vesting Tentative Map for a Two Lot Subdivision” consisting of three pages, dated July 2024 and submitted July 1, 2024.

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4889-3884-7902 v9

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

County of Santa Clara County

San Jose, CA 95110
Attention: __________

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s use.

APN: ___________

AFFORDABLE HOUSING REGULATORY AGREEMENT

AND

DECLARATION OF RESTRICTIVE COVENANTS
(Redeveloped Park)

by and among

POCO WAY HDC, INC.,

THE CITY OF PALO ALTO,

and

THE COUNTY OF SANTA CLARA

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2 This Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (Redeveloped Park) (this “Agreement”) is entered into effective as of ______________, 2024 (“Effective Date”) by and among Poco Way HDC, Inc., a California nonprofit public benefit corporation (“Owner”), the City of Palo Alto, a chartered city and municipal corporation (“City”), and the County of Santa Clara, a political subdivision of the State of California (“County”). The City, the County, and the Owner are collectively referred to herein as the “Parties.”

RECITALS
A. Owner is the owner of the real property located at El Camino Real and Los Robles Road in the City of Palo Alto, Santa Clara County, California, commonly known as the Buena Vista Mobile Home Park, known as Assessor’s Parcel Nos. 137-12-001, 137-11-102 (ptn), 137-11-071 (ptn) (the “Park”). The property comprising the Park has been subdivided to create two parcels. The subject of this Agreement is the parcel described in Exhibit A attached hereto and incorporated herein by reference (the “Property”). The adjacent second parcel is referred to herein as the “Apartment Parcel.” Owner intends to upgrade the Property and continue its use as an affordable mobilehome park consisting of forty-four (44) Mobilehome Spaces and related improvements (the “Redeveloped Park”). Owner intends to cause an affordable apartment development to be constructed on the Apartment Parcel (the “Apartment Project”).

B. The City, the County, and Santa Clara County Housing Authority, a public body corporate and politic (“Authority”) each contributed certain funds to finance the acquisition and improvement of the Property and the adjacent property (the “Financing”). In consideration for the Financing, the Parties have agreed that the Property will be owned, operated and maintained subject to a recorded restriction that requires Owner and its successors in interest to use the Property as an affordable housing resource, to enhance the habitability of the Property, and to avoid displacement of the persons who currently reside in the Park.

C. The purpose of this Agreement is to satisfy the foregoing requirements, the requirements of Notice PIH-2011-45 (HA) published by the U.S. Department of Housing and Urban Development (“HUD”) that apply to housing authorities participating in the Moving to Work demonstration program, and those additional conditions required by the City and County in connection with the Financing.

D. This Agreement replaces and supersedes in its entirety that certain Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants dated as of September 29, 2017, executed by and among the City, the County, and the Authority, and recorded in the Official Records of Santa Clara County on September 29, 2017 (the “Original Acquisition Date”) as Instrument No, 23766007.

E. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.

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3 NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties incorporate the above Recitals into the Agreement and hereby agree as follows.

1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement.
“Actual Household Size" means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with the Santa Clara County Housing Authority’s Housing Quality Standards (HQS) and 24 CFR 982.401 (i.e., assumed household size of two (2) persons per bedroom).
"Affordable Rent" means the following amounts, less the following (i) a utility allowance, (ii) Mortgage Payments and property taxes, assessments, and insurance premiums payable by the Resident Household for the Mobilehome, and (iii) other fees and charges required to be paid by Resident Households on a non-optional basis in connection with the rental or lease of a Mobilehome or Mobilehome Space:
(i) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of not more than thirty (30%) of AMI (“30% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of thirty percent (30%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(ii) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 30% AMI, but not more than fifty percent (50%) of AMI (“50% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of fifty percent (50%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(iii) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 50% AMI, but not more than eighty percent (80%) of AMI (“80% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit; and (iv) for Mobilehomes/Mobilehome Spaces occupied or reserved for occupancy by households with incomes of greater than 80% AMI, but not more than one hundred twenty percent (120%) of AMI (“120% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of one hundred twenty percent (120%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit.
“Applicable Law” means all local, State, and federal laws, rules and regulations that apply to the Property or the Redeveloped Park, including without limitation all laws, Item 5
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4 rules and regulations that apply pursuant to financing provided for development or operation of the Property or the Redeveloped Park.
"Area Median Income" or "AMI" means the median income for Santa Clara County, California, adjusted for Actual Household Size, as determined by the U.S.

Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). “Authority” means the Santa Clara County Housing Authority, a public body corporate and politic.
“Eligible Household” means a household whose Gross Household Income at initial occupancy does not exceed eighty percent (80%) of Area Median Income. “Existing Residents” means households that were lawfully residing in the Park as of the Effective Date.
“Fiscal Year” means the reporting period commending on January 1 and ending on December 31 of any year.
“Government Code” means the Government Code of the State of California. “Gross Household Income” means the total anticipated annual income of all persons in a household, as calculated in accordance with Section 6914 of Title 25 of the California Code of Regulations as such Section may be revised from time to time, or pursuant to a successor State or federal housing regulation that utilizes a reasonably similar method of calculation of household income.
“Income Certification” is defined in Section 2.
“Mobilehome” means a mobilehome, manufactured home, park model RV, or other dwelling unit located on the Property.
“Mobilehome Space” means a space located on the Property up on which a Mobilehome is placed.
“Mortgage Payment” means the monthly principal, interest, and mortgage insurance premiums (if any) payable by a Resident Household for a mortgage on a Mobilehome occupied by the Resident Household. To qualify as a Mortgage Payment for the purpose of establishing Affordable Rent, any new or additional mortgage, including any refinancing of an existing mortgage must be approved by Owner or Owner’s agent.
“MPA” means the Mobilehome Park Act, California Health and Safety Code sections 18200 et seq. and related regulations, as amended or its successor.

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5 “MRL” means the Mobilehome Residency Law, California Civil Code sections 798 et seq, and related regulations, as amended or its successor. “Rent” means the total of monthly payments payable by a Resident Household for the use and occupancy of a Mobilehome and/or a Mobilehome Space. “Resident Household” means a household that resides in a Restricted Unit. “Restricted Units” means the forty-four (44) Mobilehomes and Mobilehome Spaces in the Redeveloped Park that are subject to rent and income eligibility restrictions pursuant to this Agreement.
“Term” is defined in Section 2.1.

2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that throughout the Term, the Property shall be used solely for the operation of affordable housing in compliance with the requirements set forth in this Agreement.

2.1 Affordability Requirements. Subject to Section 2.11, for a term of seventy- five (75) years commencing upon the Effective Date (the “Term”), subject to Sections

2.4 and 2.8, all Restricted Units shall be restricted for occupancy at Affordable Rents by Eligible Households. When Mobilehomes/Mobilehome Spaces become vacant, they shall be rented to Eligible Households to satisfy the following distribution among affordability levels: (a) no less than eighteen (18) Mobilehomes/Mobilehome Spaces (i.e., 40% of the Restricted Units) shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than thirty percent (30%) of AMI adjusted for Actual Household Size, (b) no less than eighteen (18) additional Mobilehomes/Mobilehome Spaces (i.e., 40% of the Restricted Units) shall occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than fifty percent (50%) of AMI adjusted for Actual Household Size, and (c) the remainder of the Restricted Units shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than eighty percent (80%) of AMI adjusted for Actual Household Size. The Parties agree to meet and confer regarding potential modifications to the requirements set forth in this Section 2.1 if Owner demonstrates that such modification is necessary to maintain the financial feasibility of the Redeveloped Park. City and County agree to consider such requests in good faith, and will not unreasonably deny consent if Owner demonstrates that the modification is necessary for financial feasibility.

2.2 Increases in Household Incomes; Filling of Vacancies. If, upon annual recertification of Gross Household Incomes, Owner determines that the requirements in Section 2.1 are not satisfied, Owner shall offer the next available vacant Mobilehome/Mobilehome Space(s) to households of the appropriate income categories until the requirements of Section 2.1 are satisfied.

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6 2.3 Other Restrictions. Notwithstanding anything to the contrary contained in this Agreement, if lenders, investors, or regulatory agencies require stricter household income eligibility or affordability requirements than those imposed by this Agreement, the requirements of such other lenders, investors or regulatory agencies, including without limitation, the requirements associated with tax-exempt financing, if applicable, shall prevail.

2.4 Existing Residents. Notwithstanding anything to the contrary contained in this Agreement, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income shall be permitted to rent or lease a Mobilehome or Mobilehome Space at an Affordable Rent until: (a) the household voluntarily vacates the Mobilehome/Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law. Furthermore, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than one hundred twenty percent (120%) of Area Median Income shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space or until: (a) the household voluntarily vacates the Mobilehome/Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law; provided however, upon written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent; provided however, in no event shall any annual rent increase exceed ten percent (10%) over the rent charged to such household in the immediately preceding twelve (12) month period.

2.5 Income and Occupancy Certification. Owner or Owner’s authorized agent shall obtain from each Resident Household prior to initial occupancy of a Restricted Unit, and annually thereafter, a completed income and occupancy certification (“Income Certification”) setting forth the identity of each household member and the total Household Gross Income.

2.6 Annual Income and Occupancy Certification Requirement. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to annually provide an Income Certification to Owner, and that failure and/or refusal to provide such Income Certification will be considered a breach of the lease or rental agreement, and may result in the loss of the right to occupy a Mobilehome/Mobilehome Space in the Redeveloped Park.

2.7 Verification of Income and Occupancy Certification. For the initial and the annual Income Certifications, Owner shall verify each Resident Household’s income by requesting and reviewing such verification and documentation as Owner may reasonably require, which may include: (i) pay stubs for the most recent four (4) consecutive pay periods; (ii) if self-employed, Tax Form 1040, including Schedule C and other attachments from the prior year, (iii) an income verification form from the Social Security Administration and/or the California Department of Social Services if Resident Item 5
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7 Household members receives assistance from either of such agencies; (iv) history of the last 12 months of child support payments, if any, (v) if anyone in the Resident Household is unemployed, a form of independent verification; and (vi) the most recent of any and all bank account statements and/or any other financial account statements.

2.8 Increased Income of Household After Recertification. (a) If the Gross Household Income of a Resident Household is determined to have increased to be more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space on the Property at Affordable Rent until: (a) the household voluntarily vacates the Mobilehome or Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the MRL, the lease agreement and Applicable Law.
(b) If the Gross Household Income of a Resident Household is determined to have increased to be more than one hundred and twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Mobilehome or Mobilehome Space on the Property until: (a) the household voluntarily vacates the Mobilehome or Mobilehome Space, or (b) the tenancy is terminated consistent with the requirements of the lease agreement, the MRL, and Applicable Law; provided however, upon written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent.

2.9 Notice of Rent Increase or Decrease. Each Resident Household shall be provided with notice of Rent increases or decreases consistent with the requirements set forth in the lease agreement and Applicable Law.

2.10 Intentionally omitted.

2.11 Vacancies. The Parties acknowledge and agree that notwithstanding any contrary provision of this Agreement, when a Mobilehome/Mobilehome Space is vacated, Owner shall have discretion to rent or sell the vacated Mobilehome to an Eligible Household.

3. Occupancy Requirements. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to occupy their Mobilehome as their principal place of residence, and shall not be permitted to rent out their Mobilehome or sublease their Mobilehome or Mobilehome Space except as permitted under the MRL, the lease agreement and Applicable Law.

4. Construction of Improvements. Owner shall obtain all necessary permits and approvals for development of the Property and the Redeveloped Park, as required by Applicable Law, local zoning, and other applicable regulations.

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8 5. Relocation.

Persons residing on the Property as of the Effective Date shall not be displaced before suitable replacement housing is available. Owner or Owner’s agent shall be solely responsible for ensuring that all such persons receive all notices, benefits and assistance to which they are entitled in accordance with California Relocation Assistance Law (Government Code Section 7260 et seq.); Government Code sections 65863.7 and 65863.8; MPA section 798.56, the State and local regulations implementing such laws, and all other applicable local, State and federal laws, regulations and policies, including but not limited to the Uniform Relocation Act (42 U.S.C. §4601 et seq.) and implementing regulations (collectively “Relocation Laws”) relating to the displacement and relocation of eligible persons as defined in such Relocation Laws. All costs incurred in connection with the temporary and/or permanent displacement and/or relocation of occupants of the Property, including without limitation payments to a relocation consultant, moving expenses, and payments for temporary and permanent relocation benefits pursuant to Relocation Laws shall be paid by Owner.

County and City shall have no responsibility for payment therefor.

6. Owner’s Reporting Obligations to the City and County.

6.1 Annual Report. Within sixty (60) days following the close of each Fiscal Year, Owner shall submit to the City and the County a report (“Annual Report”) that includes the following information for each Restricted Unit: (a) the unit number, (b) the number of bedrooms in the Mobilehome Home, (c) the affordability category for the Mobilehome/Mobilehome Space, (d) the number of persons occupying the Mobilehome, (e) the Gross Household Income of the Resident Household, (f) the lease commencement date, (g) the current rent, utility, and other charges payable for the Mobilehome/Mobilehome Space, and (h) the projected rent increase (if any) for the Mobilehome/Mobilehome Space. To satisfy the requirement to provide an Annual Report, Owner may provide copies of forms submitted to the California Debt Limit Allocation Committee, the State Department of Housing and Community Development, or other California governmental agencies. In addition to the above, the Annual Report shall state the date the occupancy commenced, the initial rental rate, if a Mobilehome was purchased, then the purchase price paid by the resident (if such information is available) and such other information as the City or the County may be required by law to obtain.

6.2 Financial Audit. The Owner is responsible for obtaining a financial audit annually and shall provide the same to the City and County within one-hundred twenty (120) after the end of the Fiscal Year.

6.3 Additional Information. The Owner shall provide any additional information reasonably requested by the City or County. The City or County shall have right to examine and make copies of all books, records or other documents of the Owner pertaining to the Property.

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9 6.4 Retention and Inspection of Documents.

(a) Owner shall maintain complete, accurate and current records pertaining to the Restricted Units, the Redeveloped Park, and the Property, including copies of Income Certifications and Rent calculations for all Resident Households, and financial, management and maintenance records for the Redeveloped Park and the Property. Records shall be maintained for at least five (5) years from the date of their creation.

(b) Owner shall permit duly authorized representatives of the City and County to inspect Property records, including, without limitation, records pertaining to household income and household size of Resident Households; provided however, confidential and sensitive information relating to any Resident Household (such as account numbers, social security numbers, driver’s license numbers) may be redacted or marked out to protect the confidentiality of such information.

(c) The City or County or any duly authorized representative thereof shall have the right to revie w and request copies of documents. In either the City or County’s discretion, it shall have the right to audit such records, to determine the Owner’s compliance with the requirements of this Agreement.

7. Operation of the Property.

7.1 Residential Use. The Property shall be operated only for residential use; however, this restriction shall not prohibit the operation of community, recreational, educational, or similar facilities that are open to the public, provided that these uses are consistent with applicable zoning.

7.2 Non-Discrimination; Compliance with Fair Housing Laws.

7.2.1 Fair Housing. Owner and Owner’s agent shall comply with state and federal fair housing laws in the marketing and rental of the Mobilehomes and Mobilehome Spaces located on the Property. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto.

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10 of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.

7.3 Preference for Palo Alto Residents and Employees. In order to ensure that there is an adequate supply of affordable housing within the City of Palo Alto for residents and employees of businesses within the City, to the extent permitted by law and consistent with the program regulations for funding sources used for development of the Project, Owner shall give a preference in the rental of the residential units in the [Apartment Project] [Redeveloped Park] to Eligible Households that include at least one member who lives or works in the City of Palo Alto. Notwithstanding the foregoing, in the event of a conflict between this provision and rules and regulations applicable to the [Apartment Project] [Redeveloped Park], the provisions of such rules and regulations shall control, including, if applicable, any prohibition of preferences for units receiving Section 8 assistance. Owner shall comply with City’s affirmative marketing policies or other rental policies and procedures as they may be amended from time to time to ensure that City residents and people who work in the City of Palo Alto are provided reasonable notice and opportunity to rent units in the Project.

8. Property Management and Maintenance

8.1 Management Responsibilities. The Owner and Owner’s agent shall be responsible for all management functions with respect to the Property including, but not limited to, the selection of Resident Households, certification of household income and size, certification of the ages of all household members, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, security and management of household relocation, if required. The Owner shall retain a professional property management company to perform its management duties hereunder. City and County hereby approve John Stewart Company as the property manager, and subject to the rights of senior lenders and investors, City and County shall have the right to review and approve any subsequent property manager, which approval shall not be unreasonably withheld or delayed. A resident manager shall also be retained, if required by law or by Owner.

8.2 Performance Review. The City and County reserve the right to conduct jointly or separately an annual (or more frequently, if deemed reasonably necessary by the City or County) review of the management practices and financial status of the Property. The purpose of the performance review will be to enable the City and County to determine if the Property is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the City and County in such reviews.

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11 9. Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Owner, County and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No Party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other Parties thereto, their officers, board members, employees, or agents, under or in connection with or arising out of any work authorized or delegated to such other Parties under this Agreement.

Notwithstanding the foregoing, the Owner, and its assigns, shall indemnify, defend, and hold harmless the County and City, its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, the relocation of residents of the Property, the construction of improvements on the Property, and the operation or maintenance of the Redeveloped Park the Property, excepting only loss, injury or damage caused by the negligence or willful misconduct of the County or the City. The Owner, and its assigns, shall reimburse the County and City for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the Owner is obligated to indemnify, defend and hold harmless the County and City under this Agreement.

Each Party agrees that all obligations under this Section 9 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement’s termination or assignment.

10. Binding on Successors.

10.1 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full Term regardless of any sale, assignment, transfer, or conveyance of the Property or any part thereof or interest therein. The Parties acknowledge that Owner may transfer the Property to (a) the Authority or to an entity affiliated with the Authority, (b) a limited partnership or limited liability company whose general partner or managing member is Owner or another nonprofit public benefit corporation or limited liability company that is controlled by or affiliated with Owner or the Authority, or (c) a nonprofit public benefit corporation controlled by or affiliated with Owner or the Authority.

10.2 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Item 5
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12 Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.

11. Binding Upon Successors; Covenants to Run with the Land . Owner hereby subjects its interest in the Property to the covenants and restrictions set forth in this Agreement. The Parties hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of the Parties, regardless of any sale, assignment, conveyance or transfer of the Property or any part thereof or interest therein.

Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument.

12. Recordation. This Agreement shall be recorded against the Property in the Official Records of Santa Clara County.

13. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser.

14. Default and Remedies. Owner’s default in the performance of any term, provision or covenant under this Agreement and failure to cure such default within ninety (90) days following receipt of notice of default to Owner, or if the nature of any such non-monetary default is such that it cannot be cured within ninety (90) days, Owner’s failure to commence to cure the default within ninety (90) days and thereafter prosecute the curing of such default with due diligence and in good faith shall constitute an Event of Default hereunder. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City or County may bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief, or pursue any other remedy allowed under law or in equity.

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13 connection with such sale the Fee Property will not be required to be used for affordable housing, the Parties shall cause an amount equal to: a) the amount not repaid to the City and County for any loans made by the City and County that are secured by the Fee Property, and b) at least fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date, to be reinvested in the City to create additional affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will continue to be used for affordable housing, the Parties agree that a) fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date shall be applied as a reduction to the purchase price of the Fee Property and b) the Owner shall cause to repay to the City and County any loan amount outstanding or the loan shall be assigned to the next Owner of the Fee Property. For the purposes of this paragraph, an "affiliate of the Authority" shall mean any entity that, directly or indirectly, controls, is controlled by, or is under common control with Authority. For the purposes of this paragraph, "affordable housing" shall mean the Fee Property is subject to occupancy and affordability restrictions which are substantially similar, including in length and levels of affordability, to the restrictions imposed under this Agreement and to which the City and County are parties.

Each Party agrees that all obligations under this Section 15 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement's termination or assignment.

16. Miscellaneous.

16.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by all of the Parties.

16.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.

City: City of Palo Alto
250 Hamilton Avenue
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14 Palo Alto, CA 94301
Attention: _________

With a copy to:

City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Attorney

County: County of Santa Clara
70 W. Hedding Street, East Wing, 10th floor
San Jose, CA 95110
Attention: _____________

With a copy to:

County of Santa Clara
Office of Supportive Housing
3180 Newberry Drive, Suite 150
San Jose, CA 95118
Attention: ____________

Owner: Poco Way HDC, Inc.
c/o Santa Clara County Housing Authority
505 W. Julian Street
San Jose, CA 95110
Attention: Preston Prince, Executive Director

16.3 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.

16.4 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. The relationship of the Parties shall not be construed as a joint venture, equity venture, partnership or any other relationship.

16.5 Headings; Construction. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party.

16.6 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.

Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Item 5
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15 Court of Santa Clara County, California or in the Federal District Court for the Northern District of California.

16.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements of the Parties with respect thereto.

16.8 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.

16.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

SIGNATURES ON FOLLOWING PAGES.

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16 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written above.

CITY:

CITY OF PALO ALTO, a municipal corporation
By: _______________________________

Print Name:___________________________

Title:_________________________________

Attest:________________________________
City Clerk

Approved as to form:
_____________________________
City Attorney

COUNTY:

COUNTY OF SANTA CLARA, a political subdivision of the State of California By: _______________________________

Print Name:________________________

Title:______________________________

Approved as to form and legality:
_____________________________
County Counsel

OWNER:

POCO WAY HDC INC., a California nonprofit public benefit corporation By:______________________
Preston Prince, President
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17 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

notary public, 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.

(Notary Signature)
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.

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18 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

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.

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19 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

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.

(Notary Signature)

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.

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20 Exhibit A

PROPERTY

The land is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:

[insert legal description of Redeveloped Park parcel.]

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4879-7733-6990 v9

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

County of Santa Clara

San Jose, CA 95110
Attention: _____________

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s use.

APN: ___________

AFFORDABLE HOUSING REGULATORY AGREEMENT

AND

DECLARATION OF RESTRICTIVE COVENANTS
(Apartments)

by and among

POCO WAY HDC, INC.,

THE CITY OF PALO ALTO,

and

THE COUNTY OF SANTA CLARA

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2 This Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (Apartments) (this “Agreement”) is entered into effective as of ______________, 2024 (“Effective Date”) by and among Poco Way HDC, Inc., a California nonprofit public benefit corporation (“Owner”), the City of Palo Alto, a chartered city and municipal corporation (“City”), and the County of Santa Clara, a political subdivision of the State of California (“County”). The City, the County, and the Owner are collectively referred to herein as the “Parties.”

Owner intends to redevelop the Property and construct thereon a sixty-one (61) unit multifamily residential rental project consisting of sixty (60) affordable apartments and one unrestricted manager’s unit, with related improvements (the “Apartment Project”).

Owner intends to upgrade the Park Parcel and continue its use as an affordable mobilehome park.

B. The City, the County, and Santa Clara County Housing Authority, a public body corporate and politic (“Authority”) each contributed certain funds to finance the acquisition and improvement of the Property and the adjacent property (the “Financing”). In consideration for the Financing, the Parties have agreed that Property will be owned, operated and maintained subject to a recorded restriction that requires Owner and its successors in interest to use the Property as an affordable housing resource, to enhance the habitability of the Property, and to avoid displacement of the persons who currently reside at the Property.

E. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding upon Owner and Owner’s successors and assigns for the full term of this Agreement.

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1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement.
“Actual Household Size" means the actual number of persons in the applicable household.
“Adjusted for Family Size Appropriate for the Unit” shall be determined consistent with the Santa Clara County Housing Authority’s Housing Quality Standards (HQS) and 24 CFR 982.401 (i.e., assumed household size of two (2) persons per bedroom).
"Affordable Rent" means the following amounts, less a utility allowance and other fees and charges required to be paid by tenants on a non-optional basis:
(i) for Dwelling Units occupied or reserved for occupancy by households with incomes of not more than thirty (30%) of AMI (“30% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of thirty percent (30%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, (ii) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 30% AMI, but not more than fifty percent (50%) of AMI (“50% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of fifty percent (50%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit,
(iii) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 50% AMI, but not more than eighty percent (80%) of AMI (“80% Units”), a monthly rent that does not exceed one-twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit; and
(iv) for Dwelling Units occupied or reserved for occupancy by households with incomes of greater than 80% AMI, but not more than one hundred twenty percent (120%) of AMI (“120% Units”), a monthly rent that does not exceed one- twelfth of thirty percent (30%) of one hundred twenty percent (120%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit. “Applicable Law” means all local, State, and federal laws, rules and regulations that apply to the Property or the Apartment Project, including without limitation all laws, rules and regulations that apply pursuant to financing provided for development or operation of the Property or the Apartment Project.
"Area Median Income" or "AMI" means the median income for Santa Clara County, California, adjusted for Actual Household Size, as determined by the U.S.

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4 Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). “Authority” means the Santa Clara County Housing Authority, a public body corporate and politic.
“Dwelling Unit” means each of the residential apartments developed on the Property.
“Eligible Household” means a household whose Gross Household Income at initial occupancy does not exceed eighty percent (80%) of Area Median Income. “Existing Residents” means households that were lawfully residing in the Park as of the Effective Date.
“Fiscal Year” means the reporting period commending on January 1 and ending on December 31 of any year.
“Government Code” means the Government Code of the State of California. “Gross Household Income” means the total anticipated annual income of all persons in a household, as calculated in accordance with Section 6914 of Title 25 of the California Code of Regulations as such Section may be revised from time to time, or pursuant to a successor State or federal housing regulation that utilizes a reasonably similar method of calculation of household income.
“Income Certification” is defined in Section 2.
“Rent” means the total of monthly payments payable by a Resident Household for the use and occupancy of a Dwelling Unit.
“Resident Household” means a household that resides in a Restricted Unit. “Restricted Units” means the sixty (60) Dwelling Units in the Apartment Project that are subject to rent and income eligibility restrictions pursuant to this Agreement. “Term” is defined in Section 2.1.

2.1 Affordability Requirements. For a term of seventy-five (75) years commencing upon the Effective Date (the “Term”), subject to Sections 2.4 and 2.8, all Item 5
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5 Restricted Units shall be restricted for occupancy at Affordable Rents by Eligible Households. When Dwelling Units becomes vacant, they shall be rented to Eligible Households to satisfy the following distribution among affordability levels: (a) no less than 24 Dwelling Units (40% of the Restricted Units) shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than thirty (30%) of AMI adjusted for Actual Household Size, (b) no less than 24 additional Dwelling Units (40% of the Restricted Units) shall occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than fifty (50%) of AMI adjusted for Actual Household Size, and (c) the remainder of the Restricted Units shall be occupied, or if vacant made available for occupancy, by households whose Gross Household Income at initial occupancy is not more than eighty percent (80%) of AMI adjusted for Actual Household Size. The Parties agree to meet and confer regarding potential modifications to the requirements set forth in this Section 2.1 if Owner demonstrates that such modification is necessary to maintain the financial feasibility of the Apartment Project.

City and County agree to consider such requests in good faith, and will not unreasonably deny consent if Owner demonstrates that the modification is necessary for financial feasibility.

2.2 Increases in Household Incomes; Filling of Vacancies. If, upon annual recertification of Gross Household Incomes, Owner determines that the requirements in Section 2.1 are not satisfied, Owner shall offer the next available vacant Dwelling Unit(s) to a households of the appropriate income categories until the requirements of Section

2.1 are satisfied.

2.3 Other Restrictions. Notwithstanding anything to the contrary contained in this Agreement, if lenders, investors, or regulatory agencies require stricter household income eligibility or affordability requirements than those imposed by this Agreement, the requirements of such other lenders, investors or regulatory agencies, including without limitation, the requirements associated with tax-exempt financing, if applicable, shall prevail. In addition, notwithstanding any contrary provision of this Agreement, the rent and household income limitations applicable to the use of federal low-income housing tax credits shall prevail over any inconsistent provision of this Agreement if federal low-income housing tax credits are used to finance the Apartment Project.

2.4 Existing Residents. Notwithstanding anything to the contrary contained in this Agreement, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income shall be permitted to rent or lease a Dwelling Unit at an Affordable Rent until: (a) the household voluntarily vacates the Dwelling Unit, or (b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law. Furthermore, Existing Residents who do not qualify as an Eligible Household because their Gross Household Income is more than one hundred twenty percent (120%) of Area Median Income shall be permitted to continue to rent or lease a Dwelling Unit until: (a) the household voluntarily vacates the Dwelling Unit, or (b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law; provided however, upon Item 5
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6 written notice in accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent; provided however, in no event shall any annual rent increase exceed ten percent (10%) over the rent charged to such household in the immediately preceding twelve (12) month period.

2.5 Income and Occupancy Certification. Owner or Owner’s authorized agent shall obtain from each Resident Household prior to initial occupancy of a Restricted Unit, and annually thereafter, a completed Income and Occupancy Certification (“Income Certification”) setting forth the identity of each household member and the total Household Gross Income.

2.7 Verification of Income and Occupancy Certification. For the initial and the annual Income Certification, Owner shall verify each Resident Household’s income by requesting and reviewing such verification and documentation as Owner may reasonably require, which may include: (i) pay stubs for the most recent four (4) consecutive pay periods; (ii) if self-employed, Tax Form 1040, including Schedule C and other attachments from the prior year, (iii) an income verification form from the Social Security Administration and/or the California Department of Social Services if Resident Household members receives assistance from either of such agencies; (iv) history of the last 12 months of child support payments, if any, (v) if anyone in the Resident Household is unemployed, a form of independent verification; and (vi) the most recent of any and all bank account statements and/or any other financial account statements.

2.8 Increased Income of Household After Recertification. (a) If the Gross Household Income of a Resident Household is determined to have increased to be more than eighty percent (80%) but less than or equal to one hundred twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Dwelling Unit at Affordable Rent until: a) the household voluntarily vacates the Dwelling Unit, or b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law.
(b) If the Gross Household Income of a Resident Household is determined to have increased to be more than one hundred and twenty percent (120%) of Area Median Income adjusted for Actual Household Size, such household shall be permitted to continue to rent or lease a Dwelling Unit until: a) the household voluntarily vacates the Dwelling Unit, or b) the tenancy is terminated consistent with the requirements of the lease agreement and Applicable Law; provided however, upon written notice in Item 5
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7 accordance with Section 2.9 of this Agreement, Owner may adjust the rent charged to such household to up to fair market rent.

2.10 Managers’ Units. One (1) Dwelling Unit may be used as a resident manager’s unit, and shall be exempt from the occupancy and rent restrictions set forth in this Agreement.

3. Occupancy Requirements. Owner shall include in lease and rental agreements pertaining to the Restricted Units a requirement that each Resident Household shall be required to occupy their Dwelling Unit as their principal place of residence, and shall not be permitted to sublease their Dwelling Unit .

4. Construction of Improvements. Owner shall obtain all necessary permits and approvals for development of the Property and construction of the Apartment Project, as required by Applicable Law, local zoning, and other applicable regulations. City maintains and reserves full authority and discretion under State and local law in the processing of entitlements and permit applications.

5. Relocation.

Persons residing on the Property as of the Effective Date shall not be displaced before suitable replacement housing is available. Owner or Owner’s agent shall be solely responsible for ensuring that all such persons receive all notices, benefits and assistance to which they are entitled in accordance with California Relocation Assistance Law (Government Code Section 7260 et seq.); Government Code sections 65863.7 and 65863.8; the State and local regulations implementing such laws, and all other applicable local, State and federal laws, regulations and policies, including but not limited to the Uniform Relocation Act (42 U.S.C. §4601 et seq.) and implementing regulations (collectively “Relocation Laws”) relating to the displacement and relocation of eligible persons as defined in such Relocation Laws. All costs incurred in connection with the temporary and/or permanent displacement and/or relocation of occupants of the Property, including without limitation payments to a relocation consultant, moving expenses, and payments for temporary and permanent relocation benefits pursuant to Relocation Laws shall be paid by Owner. County and City shall have no responsibility for payment therefor.

6. Owner’s Reporting Obligations to the City and County.

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8 Income of the Resident Household, (f) the lease commencement date, (g) the current rent, utility, and other charges payable for the Dwelling Unit, and (h) the projected rent increase (if any) for the Dwelling Unit. To satisfy the requirement to provide an Annual Report, Owner may provide copies of forms submitted to the California Tax Credit Allocation Committee, the State Department of Housing and Community Development, or other California governmental agencies. In addition to the above, the Annual Report shall state the date the occupancy commenced, the initial rental rate, and such other information as the City or the County may be required by law to obtain.

6.4 Retention and Inspection of Documents.

(a) Owner shall maintain complete, accurate and current records pertaining to the Dwelling Units, the Apartment Project, and the Property, including copies of Income Certifications and Rent calculations for all Resident Households, and financial, management and maintenance records for the Apartment Project and the Property. Records shall be maintained for at least five (5) years from the date of their creation.

(c) The City or County or any duly authorized representative thereof shall have the right to review and request copies of documents. In either the City or County’s discretion, it shall have the right to audit such records , to determine the Owner’s compliance with the requirements of this Agreement.

7. Operation of the Property.

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9 7.2 Non-Discrimination; Compliance with Fair Housing Laws.

7.2.1 Fair Housing. Owner and Owner’s agent shall comply with state and federal fair housing laws in the marketing and rental of the Dwelling Units. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto.

7.2.2 Non-Discrimination. Neither Owner nor Owner’s agent shall restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith.

8. Property Management and Maintenance

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10 and deposits, payment for operating and other expenses, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, security and management of household relocation, if required. The Owner shall retain a professional property management company to perform its management duties hereunder. City and County hereby approve John Stewart Company as the property manager, and subject to the rights of senior lenders and investors, City and County shall have the right to review and approve any subsequent property manager, which approval shall not be unreasonably withheld or delayed. A resident manager shall also be retained, if required by law or by Owner.

9. Indemnification
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Owner, County and City agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No Party, nor any officer, board member or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other Parties thereto, their officers, board members, employees, or agents, under or in connection with or arising out of any work authorized or delegated to such other Parties under this Agreement.

Notwithstanding the foregoing, the Owner, and its assigns, shall indemnify, defend, and hold harmless the County and City, its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, the relocation of residents of the Property, the construction of improvements on the Property, and the operation or maintenance of the Apartment Project and the Property, excepting only loss, injury or damage caused by the negligence or willful misconduct of the County or the City. The Owner, and its assigns, shall reimburse the County and City for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the Owner is obligated to indemnify, defend and hold harmless the County and City under this Agreement.

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11 Each Party agrees that all obligations under this Section 9 shall survive the termination or assignment of this Agreement and shall remain binding on all Parties notwithstanding the Agreement’s termination or assignment.

10. Binding on Successors.

10.1 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full Term regardless of any sale, assignment, transfer, or conveyance of the Property or any part thereof or interest therein. The Parties acknowledge that Owner may transfer the Property to (a) the Authority or to an entity affiliated with the Authority, (b) a limited partnership whose general partner is Owner, or another nonprofit public benefit corporation or limited liability company that is controlled by or affiliated with Owner or the Authority, or (c) a nonprofit public benefit corporation controlled by or affiliated with Owner or the Authority.

10.2 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term.

12. Recordation. This Agreement shall be recorded against the Property in the Official Records of Santa Clara County.

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12 provision or covenant under this Agreement and failure to cure such default within ninety (90) days following receipt of notice of default to Owner, or if the nature of any such non-monetary default is such that it cannot be cured within ninety (90) days, Owner’s failure to commence to cure the default within ninety (90) days and thereafter prosecute the curing of such default with due diligence and in good faith shall constitute an Event of Default hereunder. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City or County may bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief, or pursue any other remedy allowed under law or in equity.

15. Reinvestment of Proceeds from Sale of Property. The Parties acknowledge and agree that a material consideration for the City and County to approve the financing described herein is for the proceeds of any subsequent sale of the Fee Property to be reinvested in the City to create affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will not be required to be used for affordable housing, the Parties shall cause an amount equal to: a) the amount not repaid to the City and County for any loans made by the City and County that are secured by the Fee Property, and b) at least fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date, to be reinvested in the City to create additional affordable housing. In the event that the Fee Property is sold to a third party that is not an affiliate of the Authority and in connection with such sale the Fee Property will continue to be used for affordable housing, the Parties agree that a) fifty-two percent (52%) of the total appreciation of the value of the Fee Property since the Effective Date shall be applied as a reduction to the purchase price of the Fee Property and b) the Owner shall cause to repay to the City and County any loan amount outstanding or the loan shall be assigned to the next Owner of the Fee Property. For the purposes of this paragraph, an "affiliate of the Authority" shall mean any entity that, directly or indirectly, controls, is controlled by, or is under common control with Authority. For the purposes of this paragraph, "affordable housing" shall mean the Fee Property is subject to occupancy and affordability restrictions which are substantially similar, including in length and levels of affordability, to the restrictions imposed under this Agreement and to which the City and County are parties.

16. Miscellaneous.

16.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by all of the Parties.

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13 16.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.

City: City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: _________

With a copy to:

City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attention: City Attorney

County: County of Santa Clara
70 W. Hedding Street, East Wing, 10th floor
San Jose, CA 95110
Attention: _____________

With a copy to:

County of Santa Clara
Office of Supportive Housing
3180 Newberry Drive, Suite 150
San Jose, CA 95118
Attention: ____________

Owner: Poco Way HDC, Inc.
c/o Santa Clara County Housing Authority
505 W. Julian Street
San Jose, CA 95110
Attention: Preston Prince, Executive Director

16.4 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one Item 5
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14 another. The relationship of the Parties shall not be construed as a joint venture, equity venture, partnership or any other relationship.

16.6 Governing Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.

Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Santa Clara County, California or in the Federal District Court for the Northern District of California.

16.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

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15 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written above.

CITY:

CITY OF PALO ALTO, a municipal corporation
By: _______________________________

Print Name:___________________________

Title:_________________________________

Attest:________________________________
City Clerk

Approved as to form:
_____________________________
City Attorney

COUNTY:

COUNTY OF SANTA CLARA, a political subdivision of the State of California By: _______________________________

Print Name:________________________

Title:______________________________

Approved as to form and legality:
_____________________________
County Counsel

OWNER:

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16 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

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.

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17 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

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.

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18 ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , before me,___________________________________________, (Name of Notary)

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.

(Notary Signature)

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19 Exhibit A

PROPERTY

The land is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:

[insert legal description of Apartment Project parcel.]

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1 OAK #4892-3557-3295 v1

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

Santa Clara County Housing Authority
505 W. Julian Street
San Jose, CA 95110
Attention: Executive Director

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383

Space above this line for Recorder’s use.

TERMINATION OF REGULATORY AGREEMENT

THIS TERMINATION OF REGULATORY AGREEMENT (“Termination”), dated as of ______________, 2024, is executed by and among Poco Way HDC, Inc., a California nonprofit public benefit corporation (“Owner”), the City of Palo Alto, a chartered city and municipal corporation (“City”), the County of Santa Clara, a political subdivision of the State of California (“County”) and the Santa Clara County Housing Authority, a public body corporate and politic (“Authority”). The City, the County, the Owner, and the Authority are collectively referred to herein as the “Parties.”

A. Owner is the owner of the real property located at El Camino Real and Los Robles Road in the City of Palo Alto, Santa Clara County, California, commonly known as the Buena Vista Mobile Home Park, known as Santa Clara County Assessor’s Parcel Nos. 137-12- 001, 137-11-102 (ptn), 137-11-071 (ptn), and more particularly described in Exhibit A attached hereto (the “Property”).

B. In connection with certain financing provided to assist in the acquisition and redevelopment of the Property, the City, the County, and the Authority entered into that certain Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants dated as of September 29, 2017, and recorded in the Official Records of Santa Clara County (“Official Records”) on September 29, 2017, as Instument No, 23766007 (the “Original Regulatory Agreement”).

C. Owner has succeeded to the interests of the Authority in the Property.

D. Owner intends to subdivide the Property into two separate parcels that will be redeveloped respectively as an affordable apartment project (the “Apartments”) and an affordable mobilehome park (the “Park”).

E. Concurrently with the recordation of this Termination, the City, the County, and Owner intend to enter into and record new regulatory agreements that will subject the Apartments and the Park to occupancy and rent restrictions, and that will supersede and replace the Original Regulatory Agreement.

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2 4872-1206-5952 v1
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. The Original Regulatory Agreement is hereby terminated effective as of the date of this Termination.

2. This Termination shall be recorded in the Official Records.

3. This Termination may be executed in multiple counterparts each of which shall be an original, and all of which shall together constitute one and the same instrument.

SIGNATURES ON FOLLOWING PAGE.

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3 4872-1206-5952 v1
IN WITNESS WHEREOF, the Parties hereto have executed this Termination as of the date first set forth above.

CITY:

CITY OF PALO ALTO, a municipal
corporation

By: _______________________________

Print Name:___________________________

Title:_________________________________

Attest:________________________________
City Clerk

Approved as to form:
_____________________________
City Attorney

COUNTY:

COUNTY OF SANTA CLARA, a political
subdivision of the State of California

By: _______________________________

Print Name:________________________

Title:______________________________

Attest: ________________________________
Clerk of the Board of Supervisors

Approved as to form and legality:
_____________________________
County Counsel
AUTHORITY:

SANTA CLARA COUNTY HOUSING
AUTHORITY, a public body, corporate and
politic

By:_______________________________
Preston Prince, Executive Director

OWNER:

POCO WAY HDC INC., a California
nonprofit public benefit corporation

By:______________________
Preston Prince, President

SIGNATURES MUST BE NOTARIZED.

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4 4872-1206-5952 v1

ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On , 2024, before me,___________________________________________, (Name of Notary)

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.

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ACKNOWLEDGMENT

State of California )
) ss
County of Santa Clara )

On ,2024, before me,___________________________________________, (Name of Notary)

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.

(Notary Signature)

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,

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6 4872-1206-5952 v1
Exhibit A

PROPERTY

The land is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:

PARCEL 1, AS SHOWN ON THAT CERTAIN MAP FILED SEPTEMBER 7, 2017 IN BOOK 906 OF MAPS, PAGES 29-35, SANTA CLARA COUNTY RECORDS.

APN: 137-12-001, 137-11-102 (ptn), and 137-11-071(ptn)

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Item No. 2. Page 1 of 6
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: July 10, 2024
Report #: 2406-3159

TITLE
PUBLIC HEARING / QUASI-JUDICIAL. Buena Vista Mobile Home Park Redevelopment/3980 El Camino Real (24PLN-00129): Recommendation on Applicant’s Request for Approval of a Vesting Tentative Map to Allow for a Subdivision of a Single 4.5-acre Parcel into Two Parcels. The Subdivision Map Would Facilitate Redevelopment of Buena Vista Mobile Home Park with a 61- Unit Apartment Building on a 1.69-Acre Parcel and a 44-Unit Mobile Home Rehabilitation on a

2.81-acre parcel. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act in Accordance with CEQA Guidelines Section 15332 (In-fill Development). Zoning District: RM-20 (Multi-Family Residential). For More Information Contact the Project Planner Claire Raybould at [email protected].

RECOMMENDATION
Staff recommends the Planning and Transportation Commission (PTC) take the following action(s):

1. Consider the proposed CEQA exemption in accordance with CEQA Guidelines Section 15532 (in-fill), as documented in Attachment C.

2. Recommend approval of the Vesting Tentative Map to the City Council based on findings and subject to conditions of approval in the Draft Record of Land Use Action (RLUA) in Attachment B.

EXECUTIVE SUMMARY
The applicant requests approval of a Vesting Tentative Map to subdivide one 4.5-acre parcel located at 3980 El Camino Real into two parcels. Through a separate, Streamlined Housing Development Review Entitlement Process, the Santa Clara County Housing Authority proposes to redevelop one of the two parcels with a 100% affordable, 61-unit multi-family apartment building. On the second parcel, SCCHA proposes a 44-unit mobile home rehabilitation, which will be processed through the State Housing and Community Development (HCD) department.

The subdivision facilitates financing for development of each of the resulting parcels.

BACKGROUND
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Project Information
Owner: Santa Clara County Housing Authority (SCCHA)
Architect: Van Williams Meter Pollock (VMWP), Preeti Srinivasan Representative: Kris Adhikari, SCCHA
Legal Counsel: Not Applicable
Property Information
Address: 3980 El Camino Real
Neighborhood: Barron Park
Lot Dimensions & Area: ~681 (w) x ~338 (L), (4.5-acres) Housing Inventory Site: Not Applicable
Located w/in a Plume: Not Applicable
Protected/Heritage Trees: Protected trees, see discussion below Historic Resource(s): Not Historic (See Attachment C, Class 32 Exemption for historic analysis)
Existing Improvement(s): 79 residential units (30,414 sf); Single-story; constructed in 1970 Existing Land Use(s): Mobile Home Park/RVs
Adjacent Land Uses &
Zoning:

North: Single family residential (R-1)
West: Multi-family Land Use (RM-30 Zoning)
East: Commercial Land Use (CS Zoning); lot will be split such that RM- 20 will be adjacent to the new apartment parcel
South: Multi-family Land Use (PC 2930 Zoning)
Special Setbacks: Not Applicable
Aerial View of Property:

Source: Google Satellite Maps
Land Use Designation & Applicable Plans/Guidelines
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Item No. 2. Page 3 of 6
Comp. Plan Designation: Multi-family Residential
Zoning Designation: Low Density Multi-family Residential (RM-20) Yes Yes Yes
Baylands Master
Plan/Guidelines (2008/2005)
El Camino Real Guidelines
(1976)
Housing Development
Project
Downtown Urban Design
Guidelines (1993)
South El Camino Real
Guidelines (2002)
Utilizes Chapter 18.24 -
Objective Standards
Individual Review
Guidelines (2005)
Within 150 feet of
Residential Use or District
Context-Based Design
Criteria applicable
SOFA Phase 1 (2000) Within Airport Influence
Area
SOFA Phase 2 (2003)
Prior City Reviews & Action
City Council: None
PTC: None
HRB: None
ARB: None
There have been no other hearings at this time related to the Vesting Tentative Map application. However, there have been two study sessions and a formal hearing with Council to consider the related actions. Specifically, Council held a study session on March 4, 2024 to provide feedback on the proposed streamlined housing development review application and modifications to the existing regulatory agreement for the site. The ARB also held a study session on May 2, 2024 to provide feedback on the proposed design of the apartment building.

SCCHA and staff considered the input from Council, the ARB, and the public from these study sessions and incorporated changes to the design and prepared the revised regulatory agreements accordingly. On June 18, 2024 Council held a formal hearing to provide input on the detailed modifications to the regulatory agreement as well as the final streamlined housing development review design. Council continued the project to a date certain of August 5, 2024 for a final decision. Following the PTC’s review of the Vesting Tentative Map application, the PTC’s recommendation will be forwarded to Council for a final decision.

PROJECT DESCRIPTION
On April 30, 2024, SCCHA submitted an application for a Vesting Tentative Map to subdivide the existing parcel into two parcels (24PLN-00129). Under the existing Regulatory Agreement, the property must maintain, at minimum, 100 affordable units. However, the existing spacing of mobile homes does not meet current state rules regarding spacing and setbacks. The Item 2
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Item No. 2. Page 4 of 6
introduction of an apartment building allows the property to both maintain the minimum number of affordable units, while allowing enough space to retain 44 mobile homes.

The tentative map subdivides the existing parcel to allow separate financing for the 61 apartments and 44 mobile homes. The total development, between the apartment building and mobile home units, would be 105 units; 40% of units will be provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units would be provided at a rate affordable to households earning 50% AMI and the remaining 20% would be provided at a rate affordable to households earning 80% AMI.

Requested Entitlements, Findings and Purview
The following discretionary application is being requested and is subject to PTC purview:
•Vesting Tentative Map: The process for evaluating this type of application is set forth in Title 21 of the Palo Alto Municipal Code (PAMC) and California Government Code 66474.

The process for approval of a Vesting Tentative Map for a condominium subdivision is outlined in PAMC Sections 21.12.010 and 21.13.020. Vesting Tentative maps require PTC review. The PTC reviews whether the amended subdivision is consistent with the Subdivision Map Act (in particular, Government Code 66474), Title 21 of the Palo Alto Municipal Code, the Palo Alto Comprehensive Plan, and other applicable provisions of the Palo Alto Municipal Code and State Law. The PTC’s recommendation is forwarded to the City Council for final approval.

ANALYSIS
The proposed project and relevant discussion and findings herein reflect the Vesting Tentative Map. Council will consider the proposed site improvements and amendments to the existing regulatory agreement along with this subdivision. The proposed map includes vacation of easements that would no longer be relevant to the parcels and dedication of new public utility easements and a public access easement associated with the new site improvements.

Neighborhood Setting and Character
The project is located along Los Robles Avenue. Surrounding uses are primarily residential, with single-family uses to the north, multi-family uses to the south and west, and commercial uses to the east along El Camino Real.

Consistency with the Comprehensive Plan, Area Plans and Guidelines The proposed Vesting Tentative Map is consistent with the Comprehensive Plan, in that the site is designated primarily as “Multifamily” land use category and will be developed as a multifamily development on that portion of the site. The map facilitates the redevelopment of a parcel within the City’s urban service area which is consistent Policy L-1.2 of the Comprehensive Plan. The associated development to be constructed on the lot would add new residential units that contribute to the housing inventory including two affordable housing units, consistent with Goal 2 of the Housing Element, which states “assist in the provision of safe, attainable, and sustainable housing, especially affordable housing, to meet the needs of all Item 2
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Item No. 2. Page 5 of 6
economic segments of the community.” Consistencies with other Comprehensive Plan policies are included in Attachment B of this report.

Zoning Compliance
The site is zoned primarily as RM-20 (multi-family residential). The proposed multi-family development is a permitted use within the RM-20 Zone. The size of the parcel would not change and is consistent with code requirements for the RM-20 Zone District, which has a minimum lot size of 8,500 sf and minimum dimensions of 70 feet in width by 100 feet in depth.

Staff finds that the proposed Vesting Tentative Map complies with these code requirements for parcels.

FISCAL/RESOURCE IMPACT
In June 2016, Council authorized the expenditure of $14.5 million in City affordable housing funds to support the Housing Authority’s potential acquisition of the Buena Vista Mobile Home Park for deed restricted affordable housing. The money was utilized to acquire the site in 2017.

The redeveloped Buena Vista Community will have two separate development budgets: one for the mobile home park and one for the proposed apartments. With the State's award of nearly $25 million in Manufactured Housing Opportunity and Revitalization funds, the mobile home park is fully funded. The Housing Authority is continuing to work on the financing plan and funding applications for the apartment building and intends to apply for Preservation and Reinvestment Initiative for Community Enhancement funds and tax credits by August 2024.

SCCHA also intend to apply for tax credits at the end of August 2024. No additional funding is requested from the City at this time. The formal application is a cost recovery project and the SCCHA has paid the required deposit fee in accordance with the municipal fee schedule for processing of this application.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing to be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on June 28, 2024, which is 13 days in advance of the meeting. Postcard mailing occurred on June 26, 2024.

As of the writing of this report, no project-related, public comments were received related to the Vesting Tentative Map. Comments received on the proposed Streamlined Housing Review application are outlined in the Council staff report.

ENVIRONMENTAL REVIEW
The City, acting as the lead agency, determined that the project is exempt from CEQA in accordance with CEQA Guidelines Section 15332, which exempts in-fill development projects on sites of five acres or less. The documentation to support the exemption is included in Item 2
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Item No. 2. Page 6 of 6
Attachment C. The CEQA analysis assesses the whole of the action, including the subdivision and redevelopment of both parcels.

The County Housing Authority is also seeking federal funding from the Department of Housing and Urban Development (HUD); therefore, HUD will serve as the lead agency under the National Environmental Policy Act. The City will serve as the responsible entity preparing the Environmental Analysis (EA) in accordance with federal regulations.

ALTERNATIVE ACTIONS
In addition to the recommended action, the Planning and Transportation Commission may:

1. Approve the project with modified findings or conditions;

2. Continue the project to a date (un)certain; or

3. Recommend project denial based on revised findings

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Vesting Tentative Map and Environmental Analysis AUTHOR/TITLE:

Claire Raybould, AICP, Principal Planner
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April 10, 2024

Mr. Jonathan Lait
Planning Director
Planning & Development Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301

RE: Buena Vista Commons
Re-submittal SB 330 Planning Application Submittal

Dear Mr. Lait:

The Santa Clara County Housing Authority (Housing Authority) is pleased to re-submit this SB 330 Planning Application for the development of Buena Vista Commons at 3980 El Camino Real in Palo Alto. Bu ena Vista Commons is the apartment component of a larger redevelopment occurring at the Buena Vista Mobile Home Park (Park).

The original submittal was made on February 9, 2024. The updated drawings and planning documents that are enclosed in this re-submittal package were informed by comments we received from City staff following the initial submittal on February 9th. We have also made cost-informed design changes to allow project feasibility. These changes simplify the structural systems required for the apartment and improve feasibility by reducing cost. These changes are notable, but modest in physical impact. We have maintained the same unit count, increased the amount of parking available, and maintained the spirit of all design feedback that we received from our partners and community members during the conceptual and schematic design proces s.

As a reminder, Buena Vista Commons will consist of 61 affordable homes for families. 100% of the homes are subject to affordability restrictions in accordance with the tri-party regulatory agreement that is held between the Housing Authority, City, and County. The project will be developed on land owned by Poco Way HDC, Inc., a California nonprofit public benefit corporation that is wholly controlled by the Housing Authority , the developer.

The project uses The Housing Crisis Act (SB 330) and the California State Density Bonus Law (AB 1763). Buena Vista Commons satisfies the requirements of SB 330 and AB 1763, as detailed in the enclosed Project Description. On December 19, 2023, we submitted an SB 330 Preliminary Application to Palo Alto Planning staff.

We look forward to continuing to work with the City on this new project. Should you have any questions or need additional information, please feel free to contact Kris Adhikari at (650) 582 -9359 or [email protected].

Sincerely,

Flaherty Ward
Director of Real Estate
Flaherty Ward (Apr 10, 2024 09:28 PDT)
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Buena Vista Commons
3980 El Camino Real, Palo Alto, CA
Submitted by:

Santa Clara County Housing Authority
505 W. Julian Street
San José, CA 95110

STREAMLINED HOUSING DEVELOPMENT REVIEW
Updated: Jul 19, 2024
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Index

1. Introduction.................................................................................2 a. Project Description...........................................................................2 b. Project Team.....................................................................................4 c. About the Santa Clara County Housing Authority (SCCHA).............4

2. Community Engagement..............................................................5

3. Project Details..............................................................................6 a. Site....................................................................................................6 b. Design...............................................................................................7 c. Sustainability.....................................................................................8 d. Affordability......................................................................................9

4. Zoning and Development Standards...........................................11 a. Comprehensive Plan and Zoning Code..........................................11 b. Eligibility for Streamlining..............................................................12 c. Regulatory Agreement...................................................................12 d. Modifications under State Density Bonus Law..............................13 e. Relocation and Displacement........................................................14

5. Forms & Checklists.....................................................................16 a. SB 330 State Preliminary Application Form...................................16 b. City of Palo Alto Housing Information Checklist............................35 c. Objective Design Standards Checklist............................................38 d. SCVURPPP C.3 Data Form ..............................................................59

6. Supplemental Documents..........................................................65 a. Preliminary Title Report and Parcel Map ......................................65 b. Community Engagement Report ...................................................83 c. Arborist Report, Numbered Tree Map & Tree Disclosure Form....89 d. Draft Trash Management Report ................................................122 e. Geotech Report.............................................................................141 f. Environmental Report...................................................................183 g. Domestic Water Demand..............................................................216 h. Exterior Lighting fixture cutsheets................................................221 Item 5
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1. Introduction
a. Project Description
Buena Vista Commons is the apartment component of a larger redevelopment occurring at the Buena Vista Mobile Home Park (Park), Palo Alto’s only mobile home park, located at 3980 El Camino Real, in the Barron Park neighborhood. Buena Vista Commons is proposed as a 61-unit apartment building, which occupies 1.69 acres of the existing 4.5 acre property. The location has been used for housing since at least the 1950s, when Buena Vista first converted from a car camp along El Camino Real to a mobile home park with spaces and hook-ups for homes.

It eventually became a critical part of natural affordable housing stock in Palo Alto. Buena Vista Mobile Home Park had its last substantial renovation in 1970. As a result, the infrastructure is outdated and insufficient, the Park is overcrowded, and many homes require replacement. Buena Vista Commons is a critical part of the redevelopment that is necessary to address overcrowding at the Park and to achieve other project goals that are shared between the City, County and Housing Authority: to make substantial physical improvements, ensure financial sustainability, and maintain over 100 affordable homes.

Buena Vista Commons will be deed-restricted as 100% affordable housing. The apartment will serve existing renters who live at the Buena Vista Mobile Home Park, and it will increase affordable housing opportunities to more families in Palo Alto. Among the current resident population of the Park, a 2023 income recertification found that 90% of all current households are low-income (below 80% AMI and over half of households are very low-income (below 50% AMI). The average affordability level for each home at Buena Vista Commons is expected to be below 42% of AMI. The proposed project preserves affordable housing among the Park community and helps meet the larger community need for more affordable housing in Palo Alto.

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The location for Buena Vista Commons is an important one for more housing. It sits in the Barron Park neighborhood, which is an area that is rich in resources for families. It is less than a half-mile away from an elementary school, grocery store, public transit, and other restaurants, parks and cafes. In addition, housing costs throughout the Bay Area, including Palo Alto, have continued to skyrocket over time. Projects such as ours are critical to preserve and expand affordable housing opportunities in Palo Alto, helping maintain and increase socioeconomic and racial diversity.

Immediately adjacent land uses to this site are another affordable housing property (Oak Manor Townhouses) to the west, commercial businesses to the east, and single family residential to the north.

Through its design features, Buena Vista Commons will bring energy efficiency, community cohesion, and curb appeal. It will also use materials that are intended to maintain well over time. For energy efficiency, Buena Vista Commons will be all-electric, use natural flooring, use Energy Star appliances, have bicycle parking, and will be setup to accommodate electric vehicle charging. For the resident community, it will have a barbecue area, teen room, community room, and resident services offices. And compared to the built structures at Buena Vista Mobile Home Park today, the apartment will have playful angles, fresh colors, and new trees that will make it attractive to passers- by in the Palo Alto community.

Barron Park neighborhood
Adjacent building: Oak Manor Townhouses by Alta Housing Barron Park Elementary School
Adjacent commercial building along El Camino Real
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b. Project Team
c. About the Santa Clara County Housing Authority (SCCHA) • Santa Clara County Housing Authority (SCCHA): Is the project developer . SCCHA is a public agency whose mission is to provide and inspire affordable housing solutions to enable low-income people and families in Santa Clara County to achieve financial stability and self-reliance. • The John Stewart Company: The John Stewart Company has been Property Manager at Buena Vista Mobile Home Park since 2020 and will remain property manager for Buena Vista Commons. They are experienced with affordable housing compliance requirements, such as annual income recertifications. • Burke, Williams & Sorensen, LLP: Real estate and land use attorneys. • Van Meter Williams Pollack LLP: Architect.
• Sandis Civil Engineers: Civil Engineer .
• Associated Right of Way Services, Inc.: Relocation consultant.

Santa Clara County Housing Authority is a public agency whose mission is to provide and inspire affordable housing solutions to enable low-income people and families in Santa Clara County to achieve financial stability and self- reliance. It is one of the original 39 Moving to Work agencies (out of 3,200 nationwide public housing authorities), which gives it a special designation to make strategic program and policy changes.

The Housing Authority was established in 1967. One of its functions is as a developer and asset manager for affordable housing. It currently owns nearly 3,500 homes throughout Santa Clara County. It has an active development pipeline of over 1,200 homes, which is through large master-plan projects, smaller development sites, and deeply mission driven developments like Buena Vista. Currently, Bellarmino Place, Alvarado Park, and the Pavilion Inn are under construction and will provide 257 affordable homes for seniors, families , and transitional aged youth in San Jose when they are completed in 2024 and 2025. Our projects have utilized various different funding sources, including private and public sources such as Low-Income Housing Tax Credits (LIHTC) and conventional loans.

In addition to housing development and ownership, the Housing Authority administers federal rental assistance to over 19,000 households through the Housing Choice voucher program.

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To date, we have conducted a robust community and resident engagement process, going as far back as July 2017.

Community and resident engagement has been organized into three distinct phases.

Phase 1 was Listening and Learning with Buena Vista residents, which took place from July 2017 through October 2022. During this phase there were town hall meetings, design exercises and surveys. The goal at that stage was to understand resident questions and needs, gather stakeholder preferences and information. Questions during this phase were things such as: “What do you love about Buena Vista today?” and “What are your hopes for the future?” The responses to those questions helped inform the initial concepts and ideas before design began in earnest.

Phase 2 was Formal Community Design Engagement, which took place from October 2022 to December 2023.

This is the main component of community and resident engagement that informed design. The Community Engagement Report included in the Supplemental Documents section of this Project Description further outlines this period of the engagement process. The activities that took places were town hall style meetings, small group meetings, bus tours, various written communication and other activities. Residents were informed about what changes their feedback resulted in.

Phase 3 is Post-Entitlements and Construction Outreach. This phase has not yet begun, but it is part of ongoing engagement where we will continue to provide information on the development process to impacted households, inform leaders and elected officials about the development timeline, and be available for community stakeholder input.

2. Community Engagement
Photos from various townhalls
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The project site, 3980 El Camino Real is currently the Buena Vista Mobile Home Park. The overall site has a gross area of 4.5 Acres and is situated alongside the commercial corridor of El Camino Real. Today is contains a variety of housing types- including RVs, park model RVs, mobile homes, cottages, and a single-family home. The site also includes an amenity building comprising laundry and shower rooms, as well as a small office area.

The site is located in the Barron Park neighborhood of Palo Alto, and has one street frontage along Los Robles Ave.

It can also be accessed from El Camino real via an access easement on the adjacent property. Immediately north- east of the site is a multi-tenant commercial building and a Valero gas station. On the south-west side, the site is adjacent to another affordable housing property (Oak Manor Townhouses). The site abuts lower density housing developments on the north-east and across Los Robles.

The site is not located in a special flood hazard area as determined by FEMA. It is located in a liquefaction zone, but not in a delineated earthquake fault zone as identified by the California Geologic Surveys regulatory Zone map of Earthquake Zones.

To create the new apartment building Buena Vista Commons, the existing site will require a parcel split. The resultant 1.69 Ac parcel to the south-west is proposed as the site for the apartment building. The remainder is envisioned to continue being mobile home park- with upgraded units and new utilities.

The site is currently owned by the Santa Clara County Housing Authority (SCCHA), through the subsidiary entity of Poco Way HDC. SCCHA acquired the Park in 2017, with financial contributions made by the City of Palo Alto and County of Santa Clara.

3. Project Details
a. Site

PROJECT DESCRIPTION
Buena Vista Village is a mobile home park in Palo Alto located at 3980 El Camino Real. The lot (APN 137-11-103) is currently zoned RM-20. The property now contains a variety of housing types, including RVs, park model RVs, mobile homes, cottages, and a single-family home.

This redevelopment includes replacing all units, replacing all utilities, and converting to 100% electric. The park will be redeveloped as a hybrid model that includes both coaches and a multi- family apartment building. The park will split into two parcels, with approximately two-thirds of the park remaining a mobile home park and receiving all new utilities and coaches. One-third will be redeveloped into a multi-family apartment.

Rehabilitation of the existing park including approximately all new units, new office and laundry facilities, all new utilities, and new site amenities and landscaping. The 44 new occupant-owned units include 1, 2, 3 & 4BR units consisting of Park Model RVs and Manufactured Housing (mobile homes).

The new 3-story apartment building consists of 61 family units- with unit sizes ranging from Junior 1BR, 1BR, 2BR and 3BR units. The project also includes a standalone building for a community room with a shared courtyard and patio spaces. Amenities in the main building include a, teen room & homework club, bike room, laundry room and storage areas.

Management offices and resident services are located off a main entry and lobby.

The project includes a new streetscape with new parallel parking, trees, stormwater treatment areas, sidewalk, and bike lane. A new shared driveway entrance from Los Robles will create a new main street with access for residents and visitors to both the park and the apartments.

Project:

Client:

JOB #:

SCALE:
| DATE:
1/4" = 1'-0"

BUENA VISTA

COMMONS
3980 EL CAMINO REAL,
PALO ALTO, CA 94306

SANTA CLARA COUNTY

HOUSING AUTHORITY
505 W. JULIAN STREET,
SAN JOSÉ, CA 95110

PROJECT

DESCRIPTION
SANDIS
1700 S. WINCHESTER BLVD., SUITE 200
CAMPBELL, CA 95008

PLURAL STUDIO
2742 17TH STREET
SAN FRANCISCO, CA 94110

MILLENNIUM DESIGN AND
CONSULTING, INC.

PO BOX 737
ALAMO, CA 94507

EMERALD CITY ENGINEERS,
INC.
2222.1
A0.00
12/05/202350% DD

CIVIL ENGINEER

LANDSCAPE ARCHITECT

JOINT TRENCH

MEP ENGINEER

PA PLANNING- ENTITLEMENTS PRE-APP
21705 HIGHWAY 99
LYNNWOOD, WA 98036

ELEMENT STRUCTURAL
ENGINEERS, INC.

STRUCTURAL ENGINEER
39675 CEDAR BLVD #295C
NEWARK, CA 94560

PROJECT IMAGE

VICINITY MAP

EL CAMINO REAL
0' 300' 1200'600'

ALMA ST

LOS ROBLES
W
MEADOW
DR

APPROVAL STAMPS

RECEIVED, REVIEWED & REVISION STAMPS

OVERALL SITE

APARTMENT
SITE

ID DATE NAME
P
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In early 2019, SCCHA began working with Van Meter Williams Pollack LLP (VMWP) on the redesign and renovation of the Buena Vista Mobile Home Park. Through a series of evolving design challenges and iterations, the design program for the redevelopment ultimately landed on a hybrid model- including a new apartment building and a mobile home park as well as infrastructure upgrades and new amenities. b. Design
Buena Vista Commons is the new apartment building piece of the redevelopment. It is currently envisioned as a 3-story building with a single street frontage along Los Robles Ave. It comprises 61 units ranging from Junior 1-BRs to 1-, 2- and 3-BR units. The apartment site also includes an internal street known as Main Street, that provides access to the mobile home park from Los Robles Ave. This will be shared between the two sites via a future access easement.

The building is configured as a C-shaped building with a courtyard in the middle. The 2 wings and the courtyard help it connect to the adjacent mobile home park and create a welcoming space with amenities that will be shared by residents of both developments. The courtyard also connects across an private internal street (Street 1) to proposed recreation areas in the mobile home park. This configuration is a result of multiple design iterations and incorporating resident and stakeholder feedback- the massing was flipped around to open up to the mobile home park. The building maintains a generous 60-70’ setback from the existing property lines to the side and rear . The adjacent properties to the rear are lower density residential, and the setback is buffered with surface parking and a planting area.

The ground floor includes a lobby and 2 office suites- one for onsite Property Management and another for Resident Services. The Lobby and Property Management offices are located at the entry corner at Main Street and Los Robles.

This helps to address resident concerns over safety and access to the site.

The ground floor also includes a spacious Teen Room that will house the Homework Club. Homework Club is an important part of the Buena Vista community and supports the kids who currently live here. There is also a Community Room located off the central courtyard. Both the Community Room and Teen Room are intended to be shared by residents of the apartment building as well as the residents of the upgraded mobile home park. Other resident amenities in the apartment building include a laundry room, bike room and a storage room.

Concept view of Buena Vista Commons
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Sustainability is integral to the design of Buena Vista Commons. Green building principles are a key to environmental responsibility and also help us create comfortable, high quality living spaces for future residents- many of whom will be relocating from the current mobile home park. Sustainable design will help to keep the building’s operating costs low, while also helping to keep monthly utility bills manageable for the residents.

Buena Vista Commons will be designed to meet the City of Palo Alto’s Green building ordinance. For new multifamily construction, this entails CALGreen Mandatory Plus Tier 2 with local amendments. The project is also currently aiming to meet LEED for Homes- which promotes the design and construction of high-performance green homes. A combination of these two rating systems will ensure a comprehensive approach to green design that translates across design disciplines.

Planned features at this time include: rooftop solar panels, EV charging, low-flow water fixtures, Energy Star appliances and biotreatment areas spread across the site. c. Sustainability
The apartment building site will also include 79 surface parking spaces at the side and rear . Approx. 61% of these spaces are planned to have EV charging equipment installed at the outset, with the remaining spaces planned to be EV-ready. Rooftop solar panels are also planned for the building.

The overall redevelopment plan has a thoughtful landscape design that incorporates resident feedback received over time. It aims to create communal spaces and respite areas across the site. The apartment site includes a courtyard with an outdoor BBQ area and shaded seating. In response to stakeholder feedback about the lack of trees at Buena Vista currently, plenty of planting areas with trees and planned biotreatment are shown throughout the site.

In addition to incorporating feedback from residents and stakeholders, the project has been designed to respond to the City of Palo Alto’s Objective Design Standards.

This entitlements package also includes the streetscape design for the complete site along Los Robles Ave. The current design shows a new sidewalk, new street parking, and planting bulb-outs, all while retaining existing underground and overhead utilities along Los Robles. New utilities serving the apartment building and the mobile home park are planned to be located along Los Robles.

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Buena Vista Commons will provide 61 rental apartments comprised of a mix of studio/junior one-bedroom (with an embedded bedroom), one-bedroom, two-bedroom, and three-bedroom apartments.

The apartments will have affordability restrictions at or below lower income levels, defined as 80% of the area median income. In practice, it is our intention and plan to provide the affordable units at lower income levels as determined by multiple regulatory agreements that will be held on the property including those held with the California Tax Credit Allocation Committee (CTCAC) and the tri-party regulatory agreement that is held between the City of Palo Alto, County of Santa Clara, and Santa Clara County Housing Authority. A development goal of Buena Vista is to maintain it as an affordable housing asset for the long-term, while preventing the displacement of all existing households. To that aim, any households currently residing at the Buena Vista site who are moderate or high-income will be allowed to remain, however, those units will be made available to lower income households at affordable rents after the returning households voluntarily vacate their units. This provision is codified in the tri- party regulatory agreement.

The tables below show the current income limits of eligible households, based on household size, as determined by the CTCAC. The 80% of AMI incomes affording to California Department of Housing and Community Development (HCD) are included for reference, as these figures are what the City of Palo Alto uses to define “low income.” The project’s monthly rents are determined by the CTCAC to ensure that rents are affordable to the lower-income residents earning between 30% to 80% of AMI. The following table shows the range of net rents (after utilities) currently projected to be charged to residents during the first year of operations based on CTCAC’s currently published rents. We note that if the project were to receive project-based rental assistance, the rents paid by residents could be even lower, as they would only need to pay 30% of their income towards rent.
d. Affordability

PROPOSED MONTHLY RENTS
Unit Type Monthly Rent
Junior 1-Bedroom Apartment $829-2,677
1-Bedroom Apartment $882-2,677
2-Bedroom Apartment $595-3,212
3-Bedroom Apartment $1,203-3,711
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The following table summarizes the income and rent restrictions that will apply to this project to receive the state density bonus.
*Existing tenants at the property will be allowed to return to the apartment regardless of whether they income qualify at move-in. Those units are considered as restricted low-income units because the tri-party regulatory agreement requires that future units will be made available to lower income households at affordable rents after any initial moderate or high-income households voluntarily vacate their units. After any initial moderate or high- income households vacate their units, those units will continue be restricted as low-income units with affordable rents for at least an additional 55 years or greater .

Unit Type Number of Units Unit Square Footage (approx.) Maximum Affordability Restriction*
Junior 1-BR 2 490 SF 80% of AMI
1-BR Apartment 27 460-485 SF 80% of AMI
2-BR Apartment 16 700-785 SF 80% of AMI
3-BR Apartment 15 920-975 SF 80% of AMI
Total Restricted Units 60
Total Non-Restricted Units
(Manager) 1 (2-BR Unit)
TOTAL PROJECT UNITS 61
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The 2030 Comprehensive Plan land-use designation for the site is “Multi-Family Residential” , and the site is currently zoned “RM-20” . As per PAMC 18.13.010:

RM-20 is a low-density multiple-family residence district is intended to create, preserve and enhance areas for a mixture of single-family and multiple-family housing which is compatible with lower density and residential districts nearby, including single-family residence districts. The RM-20 residence district also serves as a transition to moderate density multiple-family districts or districts with nonresidential uses. Permitted densities in the RM-20 residence district range from eight to twenty dwelling units per acre.

4. Zoning and
Development Standards
a. Comprehensive Plan and Zoning Code

ZONING INFORMATION
COMPREHENSIVE PLAN Multi-Family Residential
Allowed Uses Commercial and Retail uses that serve the immediate neighborhood, Mixed- use (housing+retail)
CURRENT ZONING Zoning District: RM-20
Allowed Uses Multi-family housing compatible with lower density and residential districts nearby, including single-family residence districts [transition district].

Height Limit 30’
Max Density 20 du/ac
Setbacks
Front yard: 20’
Interior Side yard: 10’
Interior Rear yard: 10’
Street Side and Rear yards: 16’
Site open space 35% min.

Usable open space 150 sq ft per unit min.

Common open space 75 sq ft per unit min.

Private open space 50 sq ft per unit min.

Max FAR 0.5
Parking
(Multi-family residential)
1 per micro/studio unit, 1 per 1-bedroom unit, 2 per 2-bedroom or larger unit (at least one covered).

Tandem parking allowed for any unit requiring two spaces, up to a maximum of 25% of total required spaces.
1 bike parking space per unit (100% long-term)
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The project uses The Housing Crisis Act (SB 330) and the California State Density Bonus Law (AB 1763). The eligibility for both laws is as described:

The project meets eligibility criteria under SB 330 because it complies with the following provisions:

1. The project will replace all existing or demolished protected units.

2. The project will include at least as many residential dwelling units as the greatest number of residential dwelling units that existing on the project site within the last five years.

3. Existing residents are allowed to occupy their units until six months before the start of construction.

4. The developer agrees to provide the affordable rental unit occupants relocation benefits and a right of first refusal for units available in the new development at an affordable rent for the household.

The project meets eligibility criteria under AB 1763 because it complies with the following provisions:

1. One hundred percent of the total units are for lower income households except that 20 percent of the total units may be for moderate-income households.

2. The applicant agrees and ensures the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years.

3. For a one hundred percent affordable project, rent for 20 percent of the units shall be set at affordable rent using definitions in the Health and Safety Code, and rent for the remaining units may be regulated using rents and incomes as determined by CTCAC regulations.

Note that all our waivers and concessions are in the interest of maintaining the project’s feasibility. These waivers and concessions help to reduce development costs without compromising the quality, livability, and durability of the development we will build. We have worked with our General Contractor, Nibbi Brothers Associates, to estimate impact of not receiving the waivers and concessions. In total, obtaining these waivers/concessions brings the project cost down by more than $1 million. While we understand it is disappointing to see some of the city’s objective standards relaxed, the city also benefits from the project by seeing its affordable housing stock and RHNA numbers increase because of our development. Additionally, the city can feel confident that this housing stock will remain affordable in perpetuity with the Housing Authority, the City and the County maintaining long-term control over the property. Without the waivers and concessions, it would not be possible to utilize the bonus units allowed under the state density bonus law.

And, in our current moment, it is more important than ever that we closely monitor project costs and ensure we have a cost-efficient building, as funding for affordable housing developments is significantly limited at the Local and State level.

Currently, there is a tri-party regulatory agreement held by the City, County, and Housing Authority. It restricts all units under an affordability covenant for 75 years from 2017. It is expected that this regulatory agreement will be amended and recast by the time of construction start, starting a new 75 year term to ensure the long-term affordability for 100% of units.
b. Eligibility for Streamlining
c. Regulatory Agreement
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d. Modifications under State Density Bonus Law
Since the residences will be 100% affordable for lower-income households, the project qualifies for an 80% density bonus, four incentives or concessions, and unlimited waivers under the State Density Bonus Law (AB 1763). The project also utilizes the by-right parking incentive associated with this law.

The project seeks four concessions. Together, these concessions result in actual, identifiable cost reductions by allowing a more efficient building and site design that results in a net reduction in the cost per dwelling unit of construction. The concessions, with estimated cost savings identified.

Additionally six waivers, which would otherwise prevent the development from achieving the density its allowed under the State Density Bonus Law, are identified below as well.

Concession 1: Façade breaks
The general contractor estimates an added cost of more than $500k to meet the design standards. Increasing the depth of façade breaks from two to four feet increases skin material cost and framing wall costs. In addition, this change might make current unit layout unrealistic, and increase the square footage of the building.

Concession 2: Ground floor unit direct connection to path or common open space The general contractor estimates an added cost of approximately $350,000 to add direct connections from units to an outdoor pathway or common open space. Additionally, private open space would infringe upon the amount of common open space we can provide.

Furthermore from an operations standpoint, in affordable housing, the best practice is to have a single point of entry for resident security and safety. And, considering equity, it is unfair to offer select residents’ private entries when other units cannot offer that amenity.

Concession 3: Percentage of frontage dedicated to utilities/parking/driveway The general contractor estimates that changing the utility design would add more than $100k to the project budget. Reducing the available space for utilities along building’s front facade will push mechanical areas to the rear of the building, and thus increase the length of joint trench and utility lines to the street.

Concession 4: Private Open Space
The apartment does not have any private open space. To provide private open space for every unit, it would require balconies to be built. Each balcony adds approximately $35,000 to the project budget, according to the general contractor .

On the ground floors, it will also reduce the amount of public open space that is available, and it will impact the building footprint by encroaching upon setbacks.

Balconies have been proven over time to pose significant challenges in multifamily affordable projects. They add significant cost to the project, and during operations, pose several different kinds of risk: construction defects and waterproofing issues, wear and tear, and being used as storage, despite prohibitions in lease agreements, which create additional enforcement issues for management. Instead, we are providing high quality open space throughout the apartments and the mobile home park.

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Attachment F - Project
Description and
Justification of
Concessions and Waivers

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14 STREAMLINED HOUSING DEVELOPMENT REVIEW | Buena Vista Commons Updated: Jul 19, 2024
Waiver 1: FAR
The allowed Floor-Area ratio is 0.5, however, the proposed project has a ratio of 0.89. Reducing the FAR will result in a loss of density.

Waiver 2: Height
We are proposing to modestly exceed the height limit. Maximum height allowed by zoning on this site is 30 feet.

Buena Vista Commons proposes three stories that partially exceeds the height limit due to its parapets and stair penthouse. The parapets rise to 37 feet and six inches, when measured from the lowest adjacent grade.

For Buena Vista Commons to provide the same number of units and be below the height limit, we would need to put third floor units at the lower levels. To do that, it would require widening the base of the building. As a result, the foundation would become much larger . That is not possible given the size of the parcel, thereby prohibiting the project from achieving the density it is allowed under the State Density Bonus Law.

Waiver 3: Site Open Space
Zoning requires that 35% of the site be open space. The proposed project has 24% allocated toward open space.

Achieving the amount of open space required would decrease the size of the building, causing a loss of units. It is necessary to have this waiver to maintain the density allowed under the State Density Bonus Law.

In addition, there will effectively be a shared use with the mobile home park open space, which is not contemplated in the application for the apartments.

Waiver 4: Tree Canopy Cover in the Parking Area
Zoning requires tree plantings to shade 50% of the parking lot surface area within 15 years. The proposed project achieves 47% tree canopy cover over surface parking area. As per the State density bonus law’s parking incentive, we are required to provide 77 parking spaces. Additionally, as per city comments, we are also required to provide 1 loading space onsite.

Parking is extremely impacted at family housing properties and parking has been a consistent concern voiced by residents over time. We are currently showing 79 spaces. Increasing the canopy cover further to 50% would result in the loss of parking spaces, dropping the overall parking count to below 77- thereby impacting the number of dwelling units proposed.

However, in response to ARB comments, we have made changes to improve the canopy cover from 33% in the previous iteration to 47% in the current resubmittal.

Waiver 5: Reduction in Street Trees
The city’s objective design standards require one street tree for every 30 linear feet of sidewalk length and located within 6 feet of the sidewalk. We are unable to provide this along the Los Robles Ave frontage due to the presence of a 10’ storm drain easement controlled by Santa Clara County Valley Water District (Valley Water). As per Valley Water comments, no trees or wooded plants may be planted in their easement area.

For Parcel A, we are able to push the proposed trees out of the easement area (further than 6’ behind the proposed sidewalk). However, for Parcel B, we do not have the space to push trees out of the easement. We are instead proposing to retain 2 of the existing trees along the frontage. Thus we are only able to provide 8 trees where 19 are required.

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Attachment F - Project
Description and
Justification of
Concessions and Waivers

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15 STREAMLINED HOUSING DEVELOPMENT REVIEW | Buena Vista Commons Updated: Jul 19, 2024
The proposed project will require some amount of relocation and displacement for a number of existing households who currently live at Buena Vista Mobile Home Park. The manner in which relocation will take place has not been determined yet.

A relocation plan is being developed currently. It will be circulated for public review and adopted by a public agency prior to it being applied.

Displaced residents will receive any relocation benefits that they are entitled to in accordance to all State and Federal relocation law that is associated with public financing. It is a high priority to minimize impact to displaced households including ensuring that impacted children can continue to attend their current schools throughout the duration of construction.
e. Relocation and Displacement
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Description and
Justification of
Concessions and Waivers

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Attachment G
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Environmental Document
The City, acting as the lead agency, prepared a Class 32 (CEQA Guidelines Section 15332) Exemption for Infill Development. The documentation to support this exemption is available on the project webpage.

Directions to review Project plans online

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “3980 El Camino Real” and click the address link

3. On this project specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage
3980 El Camino Real – City of Palo Alto, CA
Item 5
Attachment G - Project
Plans and Environmental

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: August 5, 2024
Report #:2404-2846
TITLE
Adoption of a Resolution Establishing Fiscal Year 2025 Property Tax Levy for General Obligation Bonds (Measure N Libraries); CEQA Status: Not a Project

RECOMMENDATION
Staff recommends that the City Council approve a resolution approving the establishment of the Fiscal Year 2025 property tax levy of $7.61 per $100,000 in Assessed Value for the secured and utility tax roll and $8.07 per $100,000 in Assessed Value (AV) for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds.

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

BACKGROUND
On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Rinconada (formerly Main) libraries and to construct the Mitchell Park community center. The City successfully sold the Bonds in two series to provide $76 million in funds for the design and construction costs. Both Standard and Poor's and Moody's awarded their highest credit ratings, Triple A, to both series of Bonds which was affirmed by Standard and Poor’s in May 2022 and Moody’s in March 2024.

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

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

As of July 1, 2024, principal amount of $46.6 million is outstanding on the General Obligation Bonds.

1 City Council, March 21, 2016, CMR 6632: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6632-mini-packet.pdf 2 City Council, June 6, 2016, CMR 6993: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6993.pdf 3 City Council, May 2, 2022, CMR 13438: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220502/20220502pccsmamended-linked.pdf Item 6
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ANALYSIS
Debt service payments on these Bonds are paid through ad valorem taxes on all taxable land and improvements (both secured and unsecured assessment roll) within the City. The total debt service in FY 2025 is $4 million. Staff is seeking Council approval of the attached resolution (Attachment A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.00761 per $100 or $7.61 per $100,000 in Assessed Value (AV) for the secured tax roll; and $0.00807 per $100 or $8.07 per $100,000 in AV for the unsecured tax roll. In comparison, prior year’s secured and unsecured tax levy was $8.07 and $8.16 respectively, per $100,000 of AV.

The assessment rate for FY 2025 is decreasing for both the secured and unsecured property taxes. The rate decreases are attributable to the rise in the Secured AV for properties throughout Palo Alto by 4.8%, an increase of $2.3 billion. The total AV is $51.8 billion. In addition, the rise in AV during FY 2024, due to property sales and new construction, resulted in excess collections which further reduced the FY 2025 annual assessment.

As for the unsecured property taxes, per the County of Santa Clara’s methodology, the prior year’s secured tax rate becomes this year’s unsecured tax rate. As a result, this rate won’t benefit from the current year’s AV increase until FY 2026. However, it did benefit from the Secured AV increase that occurred in FY 2024.

With the new assessment for FY 2025, a house with an assessed value of $1.0 million, for example, would see an annual assessment of $76.10 on their property tax bill. In comparison, in FY 2024, a $1.0 million home had an assessment of $80.70.

FISCAL/RESOURCE IMPACT
The bond issuances result in a 2025 calendar year debt service expenditure of approximately $4.04 million and Council approval of the attached resolution will result in ad valorem tax levy revenue of $3.94 million with the $0.10 million difference attributable to available funds on hand. Secured and unsecured property owners will see a levy of $7.61 and $8.07, respectively, per $100,000 of AV on their FY 2025 property tax statement.

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

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act because approval of the Measure N property tax levy is a government funding mechanism or fiscal activity which does not involve any commitment to any specific project which may Item 6
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result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: Resolution Establishing FY 2024-25 Property Tax Levy Attachment B: Exhibit A - General Obligation Bonds, Election of 2008, Series 2013 2022A, & 2022B Tax Rate Calculation Based on 2024-25 Assessed Values APPROVED BY:

Lauren Lai, Administrative Services Director
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Attachment A
Not Yet Approved
1 20240716 th 0140225
Resolution No.

Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2025 Property Tax Levy of $7.61 Per $100,000 of Secured and $8.07 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness
(Measure N Library Projects)

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

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

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

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

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

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

SECTION 1. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during Fiscal Year 2025 in the amount of $0.00761 per $100 in assessed value for the secured and Item 6
Attachment A -
Resolution Establishing FY
2024-25 Property Tax
Levy

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Attachment A
Not Yet Approved
2 20240716 th 0140225
utility tax roll and $0.00807 per $100 in assessed value for the unsecured tax roll based on the calculations set forth in the attached Exhibit "A".

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

SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager
Director of Administrative Services
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Attachment A -
Resolution Establishing FY
2024-25 Property Tax
Levy

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A) Assessed Valuations (AV )
1 ) 2024-25 Taxable Secured Assessed Valuation (AV) 49,343,195,499 $ 2 ) 2024-25 Taxable Unsecured A V 2,461,561,907$
3 ) Less: Estimated Delinquenc y 0.00% - $
4 ) Net Taxable Unsecured AV 2,461,561,907$
5 ) Total Assessed Valuation (AV ) 51,804,757,406$
B) Tax Levy Requiremen t
5 ) 2025 Calendar Year Debt Service Payments
2013 (Tax-Exempt) GO Bonds - February 1,2025 211,425.00 $ 2013 (Tax-Exempt) GO Bonds - August 1, 2025 211,425.00 422,850.00 6 ) 2022A (Tax-Exempt) GO Bonds - February 1,2025 798,750.00 $ 7 ) 2022A (Tax-Exempt) GO Bonds - August 1, 2025 2,243,750.00 3,042,500.00 8 ) 2022B (Taxable) GO Bonds - February 1,2025 42,200.00 $ 9 ) 2022B (Taxable) GO Bonds - August 1, 2025 537,200.00 579,400.00 10 ) Total Calendar Year 2025 Debt Service Payments 4,044,750.00 11 ) Excess Funds on Hand Applied Toward Debt Service (100,000.00) 12 ) Sub-total 3,944,750.00
13 ) Santa Clara County Administration Fee (0.25% of Principal & Interest) 9,861.88 14 ) Total 2024-25 Annual Debt Service Requirement 3,954,611.88 C) Secured and Unsecured Tax Rate
15 ) 2024-25 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate) 0.00807 $ 16 ) 2024-25 Unsecured Tax Rate per $100,000 of Unsecured AV 8.07 $ 17 ) 2024-25 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 15) 198,648.05 $ 18 ) 2024-25 Estimated Revenue from Secured AV (line 14 minus line 17 ) 3,755,963.83 19 ) Total 2024-25 Annual Debt Service Requirement 3,954,611.88 $ 20 ) 2024-25 Secured Tax Rate per $100 of Secured AV (line 18 divided by line 1*100) 0.00761 $ 21 ) 2024-25 Secured Tax Rate per $100,000 of Secured AV (line 18 divided by line 1 times 100,000) 7.61 $ Exhibit A
City of Palo Alto
General Obligation (GO) Bonds, Election of 2008, Series 2013, 2022A and 2022B Tax Rate Calculation Based on 2024-25 Assessed Values
Item 6
Attachment B - Exhibit A
General Obligation Bonds,
Election of 2008, Series
2013 2022A, & 2022B Tax
Rate Calculation Based on
2024-25 AV

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 5, 2024
Report #:2406-3198
TITLE
SECOND READING: Adopt an Ordinance and Resolution Extending the Interim Parklet Program to the Car-Free Portion of Ramona Street through March 2025; CEQA status - categorically exempt (FIRST READING: June 18, 2024 PASSED 7-0)

BACKGROUND
This was heard by the City Council on June 18, 2024 for a first reading and was approved 7-0.

No changes were made to the ordinance; it is now before you for a second reading.

ATTACHMENTS
Attachment A - Interim Ordinance Extending At-grade and Parklet Dining on Ramona APPROVED BY:

Mahealani Ah Yun, City Clerk
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Ordinance No. _____
Interim Ordinance of the Council of the City of Palo Alto Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On-Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor Use; and Delaying Enforcement of the Permanent Parklet Ordinance Until November 1, 2024.

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

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

A. On June 23, 2020, the City Council adopted Ordinance 5500, an emergency ordinance, in response to COVID -19 and its effects on local businesses. At that time and since then, county and state regulations related to COVID -19 have limited or curtailed many indoor activities, including dining, bars, retail, performances, and other recreational uses.

B. In June 2021, the City Council adopted Ordinance 5526, which amended and restated Ordinance 5500 on a non-emergency basis (among other changes).

C. On November 8, 2022, the City Council adopted Ordinance 5533, which amended and restated Ordinance 5526 with a sunset date of June 30, 2022.

D. In May 2022, t he City Council adopted Ordinance 5551, which amend ed and restate d Ordinance 5533 to extend its provisions through December 31, 2022.

E. In October and November 2022, the City Council adopted Ordinance 5572, which amended and restated Ordinance 5551 to extend its parklet provisions through June 30, 2023 and the remainder of its provisions through December 31, 2023.

F. In May 2023, the City Council adopted Ordinance 5584 to extend the parklet provisions of this ordinance until March 31, 2024. The remainder of the ordinance will sunset on December 31, 2023 as previously adopted.

G. In November 2023, t he City Council adopted Ordinance 5603 to extend the on -street dining provisions of this ordinance until December 31, 2024.

H. In March 2024, the City Council adopted Ordinance 5618 to extend the parklet provisions of this ordinance until August 1 , 2024; delay aspects of enforcement of the permanent (ongoing) parklet ordinance 5594 to November 1, 2024 for parklets in transition ; and extend parking lot uses through December 2024.

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Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

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I. The City Council now desires to allow this ordinance to continue to be applied to the area of Ramona Avenue currently closed to vehicular traffic through March 2025, and apply license fees to this area consistent with the fees imposed under the ongoing par klet program.

SECTION 2. City Manager Authorization
The City Manager or his or her designee(s) may promulgate guidelines and implementing regulations for the uses and programs described in this Ordinance as long as such regulations do not conflict with this Ordinance.

SECTION 3. Fees and Fee Waivers for Encroachment Permits and Parking Space Closures A. The permit fees set forth in the Municipal Fee Schedule are temporarily waived for applications for encroachment permits under Palo Alto Municipal Code Section 12.12.010 and Section 12.12.020, as modified by this Ordinance, to place structures and equipment in the public right-of-way (including closed streets and sidewalks) for purposes of outdoor dining and outdoor retail sales and display of wares.

B. The parking space closure fee in the Municipal Fee Schedule collected by the Department of Planning and Development Services is temporarily waived for the use of a parking space(s) on-street or in a parking lot for purposes of outdoor dining and outdoor retail sales and display of wares as authorized through an encroachment permit, license, or agreement with the City.

C. As a requirement for a permit issued under this Ordinance, a fee shall be imposed and collected to use the right-of-way on the portion of Ramona Avenue closed to vehicular traffic. The fee imposed shall be same fee and rate established for the license fee for parklets under PAMC Chapter 12.11.

SECTION 4. Modified Review Process for Commercial Sidewalk Encroachment Permits Notwithstanding contrary provisions of PAMC Section 12.12.020, permits may be granted for commercial sidewalk encroachments for outdoor retail sales and display areas and outdoor eating areas. Permits for these purposes shall not be required to undergo and complete design review by the Planning Department described in subsection (d) of Section 12.12.020. Except as expressly modified herein, the provisions of Section 12.12.020 shall apply to commercial sidewalk encroachments.

SECTION 5. Eating and Drinking Establishments
Eating establishments, and drinking establishments may temporarily relocate some or all of their existing indoor seating capacity to outdoor seating capacity, as follows:

A. Location. Outdoor eating areas may be placed in one or more of the following areas:

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Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
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1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010;

2. Sidewalks through issuance of an encroachment permit under PAMC Section

12.12.020, as modified by Section 4 of this Ordinance;

3. In on -street parking spaces approved for use as temp orary parklets, in accordance with the Pilot Parklet Demonstration Project as first approved by Council Resolution No. 9909 and continued by subsequent resolutions;

4. Surface p arking lots that currently provide required onsite parking for the eating/drinking establishment, through issuance of an approval by the Director of Planning, or his or her designee , as described in subsections C and D of this Section, below;

5. Other outdoor areas on the eating /drinking establishment site not originally permitted for outdoor seating in the establishment’s approved site plan or planning entitlement ( such as landscaped areas ), through issuance of an approval by the Director of Planning, or his or her designee, in accordance with subsections C and D of this Section, below; and

6. In other areas that the Council identifies by resolution or ordinance.

B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements.

1. Notwithstanding the parking requirements applicable to eating /drinking establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for eating /drinking establishments, an eating/drinking establishment may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor eating, subject to review and approval of the Planning Director or his or her designee.

2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual pla nning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with an eating /drinking establishment tenant(s) may place outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles.

C. Application. A n application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of an eating /drinking establishment’s permitted indoor restaurant seating to outdoor Item 7
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Ordinance Extending At-
grade and Parklet Dining
on Ramona

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seating in privately-owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permit s (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section

18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days.

D. Seating Layout Review. A Seating Layout Review is required to relocate some or all of an eating/drinking establishment’s permitted indoor seating to outdoor seating in privately- owned areas on the eating /drinking establishment site not originally permitted for outdoor eating. The Seating Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed outdoor seating layout based on the following criteria:

1. Seating layout does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces.

2. Seating layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act.

3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer’s label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certi ficate is needed to prove treatment.

4. Any heaters must comply with fire codes.

5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning.

6. Other requirements established in the standards and guidelines issued by the Director of Planning.

E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Seating Layout Review.

F. Occupancy. Total seating occupancy (including all indoor and outdoor seating) shall not exceed the overall occupancy for which the restaurant is permitted.

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Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

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G. Alcohol Service. Establishments that are allowed by the City to serve alcohol for onsite consumption by issuance of a conditional use permit (“CUP”) as required by PAMC Section

18.42.090 or as a legal nonconforming use, and that both have an on -sale license from the Department of Alcoholic Beverage Control (“ABC”) and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption in such outdoor areas, notwithstanding any prohibition on outdoor alcohol service or consumption in the PAMC or planning entitlement issued under Title 18 (Zoning) of the PAMC. During the effective period of this Ordinance, establishments that meet the preceding requirements may expand their footprint to outdoor areas without an amendment of the CUP, notwithstanding PAMC Section 18.42.090(c). Outdoor alcohol service shall be in full compliance with ABC regulations, as amended.

H. No Architectural Review . Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor eating areas or signage related to such areas during the effective period of this Ordinance.

SECTION 6. Retail Establishments
Retail establishments may temporarily relocate some or all of their existing customer-accessible square footage to outdoor spaces as follows:

A. Location. Outdoor retail sales and display areas and outdoor eating areas may be placed in one or more of the following areas:

1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010;

2. Sidewalks through issuance of an encroachment permit under PAMC Sec tion

12.12.020, as modified by Section 4 of this Ordinance;

3. Surface parking lots that currently provide required onsite parking for the retail establishment, through issuance of an approval by the Director of Planning , or his or her designee, as described in subsections C and D of this Section, below;

4. Other outdoor areas on the retail establishment site not originally permitted for retail sales and display or dining in the retail establishment’s approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the Director of Planning or his or her designee in accordance with subsections C and D of this Section, below; and

5. In other areas that the Council identifies by resolution or ordinance.

B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements.

Item 7
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

Item 7: Staff Report
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1. Notwithstanding the parking requirements applicable to retail establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for retail establishments, a retail establishment may conduct outdoor retail sales and display and may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor dining/retail , subject to review and approval of the Planning Director or his or her designee.

2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with a retail establishment tenant(s) may place outdoor retail sales and display areas and outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles.

C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of a retail establishment’s customer-accessible square footage to outdoor retail sales and display in privately-owned areas on the retail establishment site not originally permitted for outdoor retail sales and display . The Di rector of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050
may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section

18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days.

D. Merchandise or Seating Layout Review. A Layout Review is required to relocate some or all of a retail establishment’s permitted indoor customer -accessible square footage to privately-owned areas on the retail establishment site not originally permitted for retail.

The Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed retail layout based on the following criteria:

1. The placement of the merchandise, displays, or other items does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces.

2. The layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act.

Item 7
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

Item 7: Staff Report
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*NOT YET APPROVED*
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4. Any heaters must comply with fire codes.

5. An adequate and visible barrier is placed that clearly separa tes the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning.

6. Other requirements established in the standards and guidelines issued by the Director of Planning.

E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Layout Review.

F. No Architectural Review . Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor retail areas or signage related to such areas during the effective period of this Ordinance.

SECTION 7. Compliance with Other Regulations, Orders and Approvals The uses of public and private property allowed in this Ordinance shall be conducted in compliance with any applicable state or county mandate (including executive orders and health orders), this Ordinance, Resolution No. 9909 and its successors, and all other local and state regulations, orders, and approvals, as applicable (collectively, “Applicable Law”). Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare.

SECTION 8. No Vested Rights
The outdoor uses of public and private property allowed in this Ordinance are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this interim Ordinance , unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the City Council . The City may discontinue one or more, or all, of the allowed outdoor uses at any time if the City Manager or designee determines that the public health, safety or welfare warrant such action. Nothing in this Ordinance shall establish a vested right.

Item 7
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

Item 7: Staff Report
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SECTION 9. Suspension of Prohibition on Alcohol Consumption in Lytton Plaza and Cogswell Plaza
Notwithstanding PAMC Sections 22.04.330 and 22.04.331, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in the parking lots adjacent to Lytton Plaza and Cogswell Plaza.

SECTION 10. Use of City Parking Lots for Reopening Activities A. The City Manager, or his or her designee (“City Manager”), is authorized to permit outdoor dining, retail and other activities necessary to facilitate the reopening of businesses, in public parking lots owned by the City, subject to the City Manager’s adoption of rules, regulations, guidelines, and standards for such use (“Regulations”), and publication of such Regulations on the City’s website . Use of parking lots, or portions thereof, by a business shall require a license or other agreement, including an agreement to indemnify and hold harmless the City, and provision of insurance.

B. The City Manager is authorized to waive any fee in the Municipal Fee Schedule associated with the temporary use of parking areas for the purposes identified in Section A above.

C. Notwithstanding PAMC Section 9.04.020, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in any City owned parking lot.

SECTION 11. Personal Services, Indoor Recreation and Other Uses The authorized outdoor uses of public and private spaces authorized in this Ordinance may be applied to personal services, indoor recreation and other uses. Prior to authorizing these additional activities to occur, the City Manager, or his or her designee (“City Manager”), shall adopt rules, regulations, guidelines, and standards for these uses, and publish them on the City’s website.

SECTION 12. Severability
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. Environmental Review
The Council finds that the Ordinance is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) , 15303 (new construction of small structures), and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment).

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Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

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SECTION 14. Effective Date and Sunset Dates
This Ordinance shall be effective 31 days after adoption.

Subject to future Council action, the provisions of this ordinance allowing eating and drinking establishments, retail establishments, and other uses on temporarily closed streets and in public and private parking lots in Sections 5, 6, 10 and 11 of this O rdinance shall remain in effect until December 31, 2024. The remainder of the provisions in sections 5, 6, 10, and 11, including those provisions allowing parklets shall remain in effect until July 31, 2024.

Notwithstanding the paragraph above, only for the portion of Ramona Avenue closed to vehicular traffic: the provisions of this ordinance allowing eating and drinking establishments, retail establishments, and other uses on temporarily closed streets and in parklets in Sections 5, 6, and 11 of this Ordinance shall remain in effect until March 31, 2025 or until such portion of Ramona Avenue reopens to vehicular traffic.

The City may adopt regulations for the orderly wind-down of the programs implemented by these provisions, including setting deadlines for teardown and removal.

SECTION 15. Uncodified
This Ordinance shall not be codified.

SECTION 16. Supersedes Ordinance 5603
As of the effective date of this Ordinance, this Ordinance shall supersede Ordinance 5618, and any conflict shall be resolved in favor of this Ordinance.

SECTION 17. Delay of Enforcement of the PAMC Chapter 12.11 for Transitioning Permittees and the Portion of Ramona Avenue Closed to Vehicular Traffic The City shall delay enforcement of Ordinance 5594 as codified at PAMC Chapter 12.11 as follows:
(a) Beginning July 1, 2024, the City may begin to collect fees for the use of the right-of-way. (b) From April 1, 2024 until October 31, 2024, the City should not take enforcement action for a violation of Chapter 12.11 against a person who has (1) duly filed a pre-application for an ongoing parklet; (2) has a violation caused by the imposition of Chapter 12.11 and its regulations that did not exist prior to the imposition ; (3) has met City deadlines for transitioning parklets; and (4) is making a good-faith effort to come into compliance with Chapter 12.11 and its regulations. The City may take any other enforcement action , including if a person is (1) occupying a right of way without a valid permit or other City authorization; (2) maintaining a condition as to negatively affect public safety or welfare; or (3) for an alleged violation of any other law or regulation besides PAMC Chapter 12.11. (c) The City may adopt regulations for the orderly implementation of PAMC 12.11 that do not conflict with this Section. This includes setting deadlines for pre -applications and other submissions, as well as transition progress deadlines. (d) The City shall temporarily delay implementation and enforcement of Chapter 12.11 for the portion of Ramona Avenue closed to vehicular traffic until March 31, 2025.

Item 7
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

Item 7: Staff Report
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SECTION 18. Fee is not a Tax
The fee in this Ordinance is a charge imposed for the use of local government property. Pursuant to Art. XIII C, Section 1(e)(4) of the California Constitution, this fee is not a tax.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Public Works

____________________________
Director of Planning & Development
Services
Item 7
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona

Item 7: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Fire
Meeting Date: August 5, 2024
Report #:2405-2997
TITLE
PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA status - categorically exempt.

RECOMMENDATION
Staff recommends Council:
(1) Hold a public hearing to hear and consider objections from affected property owners of proposed assessments related to completed weed abatement work, and (2) Adopt a resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report (Attachment A)

EXECUTIVE SUMMARY
The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. One of the purposes of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials. Adoption of the resolution will result in the total of $41,597.76 imposed as liens on the properties listed in the attachment for the cost of weed abatement work performed.

BACKGROUND AND ANALYSIS
The Weed Abatement Division of Santa Clara County Agriculture and Environmental Management administers the contract for weed abatement within the City of Palo Alto, in accordance with an agreement established on April 18, 1977, between the City and County. On December 4, 2023, in accordance with Palo Alto Municipal Code Chapter 8.08, the City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public hearing was held on February 26, 2024, to consider objections to the proposed destruction or removal of the weeds. Two objections were noted and both properties were removed from the weed abatement list.

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Item 8 Staff Report

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Property owners were notified the first week in January 2024 that weeds were to be abated by April 30, 2024, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on City and private properties within Palo Alto. That work has now been completed. The County has since informed the property owners of the costs for destroying and removing the weeds. The City Clerk has published the required notice of this hearing in the Palo Alto Daily Post. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for at least ten (10) days prior to this hearing.

Property owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor’s cost, plus 150 percent administrative charges, in accordance with Palo Alto’s contract with Santa Clara County (CMR #7527, December 12, 2016). A representative from the County Weed Abatement Division will be present at the public hearing with the records of weed abatement that have taken place. Should there be any modifications in the proposed assessments as a result of the hearing, changes in the assessment spread will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confirming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected.

FISCAL/RESOURCE IMPACT
There is no direct fiscal impact of this action to the City. The assessments identified on Exhibit A of the resolution, totaling $41,597.76, will be imposed as liens on the properties listed and will be borne by the property owners, not the City.

STAKEHOLDER ENGAGEMENT
The entire weed abatement program is coordinated by the Santa Clara County Department of Agriculture and Environmental Management. Coordination includes contracts, inspections, nuisance reports/lists and fees.

ENVIRONMENTAL REVIEW
The Weed Abatement Program is Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308.

ATTACHMENTS
Attachment A: Weed Abatement Resolution with 2024 Palo Alto Assessment Report APPROVED BY:

Geoffrey Blackshire, Fire Chief
Item 8
Item 8 Staff Report

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NOT YET APPROVED
1 14_20240724_ts24 1
Resolution No.

Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein R

E C I T A L S
A
. The Council of the City of Palo Alto has heretofore declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 10135, dated December 4, 2023.

B
. The Council on February 26th, 2024 held a public hearing for o bjections to the proposed destruction and removal of weeds at the properties indicated in the County’s list for weed abatement.

C. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused to be abated the weeds on the properties described in the County’s list for weed abatement; and D
. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed his report and assessment list for weed abatement as provided by law and a public hearing was held on August 5, 2024, for objections to said report and assessment list and for confirmation; and E. T
he Council has duly considered the report and assessment list and any objections thereto.

N
OW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:

S
ECTION 1. The report and assessment list are in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit A attached hereto and incorporated herein, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the respective assessment.

S
ECTION 2 . All written or oral protests or objections to said report and assessment list are overruled or denied.

SECTION 3. The unpaid assessments shown on Exhibit A shall be entered upon the next tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, subject to the same interest and penalties, and subject to the same procedure and sale in case of delinquency. All laws and ordinances applicable to the levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment.

Item 8
Attachment A - Weed
Abatement Resolution
with 2024 PA Assessment
Report

Item 8: Staff Report
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NOT YET APPROVED
114_20240724_ts24 2
SECTION 4. The weed abatement program is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager
Fire Chief
Director of Administrative Services
Item 8
Attachment A - Weed
Abatement Resolution
with 2024 PA Assessment
Report

Item 8: Staff Report
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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A931 Clara Dr PALO ALTO 94303-4002Miao, Nina Yanti$2,552.31Edgewood16051003-12-00230 Melrose Ct HILLSBOROUGH 94010Firouzdor, Vahid And Nejati , Elham$96.00Lois1362003-38-044170 Iris Way PALO ALTO 94303-3036Xia, Fan And Zhou , Yuan$96.00Iris1703003-41-00820653 Cheryl Dr CUPERTINO 95014Deng, Jingjing And Jiang , Lijun$96.00Greer7824003-41-065506 Eisenhower St DAVIS 95616Haley, Philip H Trustee & Et Al$96.00Channing19385003-42-0391071 Embarcadero Rd PALO ALTO 94303-3149Kothary, Nishita N And Shah , Niraj$96.00Embarcadero10716003-42-05588 Shearer Dr ATHERTON 94027Hara, Michael W Trustee & Et Al$96.00Fulton12117003-43-0392385 St Francis Dr PALO ALTO 94303-3136Zadik, Yair And Linda$96.00St Francis23858003-48-0212075 Louis Rd PALO ALTO 94303-3452Keller, Jeffrey R$642.00Louis20759003-50-021179 Walter Hays Dr PALO ALTO 94303-2924Zhang, Songqing Trustee & Et Al$96.00El Cajon94610003-52-057268 Castro St MOUNTAIN VIEW 94041-1204Choi, Ben Chung-ming Trustee & Et$96.00Embarcadero86411003-56-002855 El Camino Real Ste 13a PALO ALTO 94301Agrawal, Parag And Agarwala,$96.00Southampton74212003-59-041260 Byron St PALO ALTO 94301-1307Liveright, Michael$642.00Byron26013120-02-030555 Byron St Unit 105 PALO ALTO 94301-1303L S & Co Partnership$642.00Embarcadero65514120-08-023P O Box 156 SOUTH DOS PALOS 93665Koda, Ross K Trustee$96.00Ramona73315120-27-063555 Byron St Unit 105 PALO ALTO 94301L S & Co.$642.00Bryant222016124-14-0241001 Colorado Ave PALO ALTO 94303-3806Tsunoda Roland T$642.00Colorado100117127-04-0914102 Sutherland Dr PALO ALTO 94303-4730Yurchenco, James R$96.00Sutherland410218127-16-0053951 Sutherland Dr PALO ALTO 94303-4726Chan, Allan Fukwah And Lam ,$96.00Sutherland395119127-17-014Page 1Report Date: 7/5/2024(List Sorted by APN) Item 8
Attachment A - Weed Abatement
Resolution with 2024 PA Assessment
Report

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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A3640 Lupine Ave PALO ALTO 94303-4431Luu, Jane And Ng , David M$96.00Lupine364020127-21-1403189 Louis Rd PALO ALTO 94303-3955Kato, Takashi And Ayano$642.00Louis318921127-24-031Po Box 500 BURLINGAME 94011E & R Inv Properties Llc Et Al$96.00Moreno22127-33-0641037 High St PALO ALTO 94301-2425Lin Stanley B And Jean Lai Trustee$96.00Colordado92423127-40-006464 Colorado Ave PALO ALTO 94306-2414Tanphaichitr, Saksiri M And Bellers ,$96.00Colorado46424132-08-1152657 Kipling St PALO ALTO 94306Ramchandran, Asish And Kavitha$96.00Colorado45425132-08-118Po Box 60416 PALO ALTO 94306Chou, Lynn H L$642.00Bryant268926132-13-05567 Orchard Hills St ATHERTON 94027Pao, Joy J And Ke , Shian-ren$96.00Kipling316627132-15-002354 El Verano Ave PALO ALTO 94306-2952Zhou, Zheng Trustee$96.00El Verano35428132-16-0883120 Cowper St PALO ALTO 94306-3001Valentine, Mary E$96.00Cowper312029132-20-155339 El Verano Ave PALO ALTO 94306-2940Mizote, Harumi Trustee$642.00El Verano33930132-21-022309 El Verano Ave PALO ALTO 94306-2940Zhang, Qianli And Qiu , Yunfeng$96.00El Verano30931132-21-02325210 Jake St VENETA 97487Conlin, Charlene M Trustee$96.00Bryant327132132-21-0273535 Bryant St PALO ALTO 94306-4263Darden, Ruthie L Trustee$96.00Bryant353533132-22-0343503 Bryant St PALO ALTO 94306-4263Chang, Peipei And Yang , Calvin K$642.00Bryant350334132-22-038Po Box 60458 PALO ALTO 94306Beeson, Donald H Trustee$642.00Bryant335835132-22-0703502 Bryant Street PALO ALTO 943063502 Bryant Llc$96.00Bryant350236132-22-0913533 Ramona St PALO ALTO 94306-3549Tang, Dexter Chihung Trustee & Et Al$96.00Ramona353337132-22-097936 N California Ave PALO ALTO 94303-3405Kaposhilin, Nicholas Trustee$96.00Bryant354138132-23-033Page 2Report Date: 7/5/2024(List Sorted by APN) Item 8
Attachment A - Weed Abatement
Resolution with 2024 PA Assessment
Report

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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit APo Box 5358 SAN MATEO 94402-0358Leung, John Ka Yu And Joanna Kong$96.00Roosevelt8439132-23-0554039 Scripps Ave PALO ALTO 94306-4535Liu, Jenkuei Trustee & Et Al$96.00Roosevelt7640132-23-0599 Roman Eagle Ct PLEASANTON 94566Mane, Manoj Bajirao & Manoj$96.00El Dorado17941132-25-0212876 Emerson St PALO ALTO 94306-2350Hsu, Yen-fen Trustee$96.00Emerson287642132-26-0062886 Emerson St PALO ALTO 94306-2350Narayana, Sharath Keshava And$96.00Emerson288643132-26-00711 Roosevelt Cir PALO ALTO 94306-4217Qi, Feng And Chen , Cheng-na$96.00Roosevelt1144132-29-01434 Roosevelt Cir PALO ALTO 94306-4216Lyons, Charles P Trustee & Et Al$642.00Roosevelt3445132-29-06118 Roosevelt Cir PALO ALTO 94306Bernstein, Amir D Trustee$96.00Roosevelt1846132-29-0693780 Wright Place PALO ALTO 94306Axelrod, Herbert And Fumiko$96.00Wright378047132-30-0174521 Campus Dr Unit 363 IRVINE 92612Cheng, Jing$96.00Carlson383048132-30-0581090 E Duane AveSUNNYVALE 94085At&t Comms Of Calif Inc$642.00Birch49132-33-0603675 Park Blvd PALO ALTO 94306-2853Basler, Joshua R$96.00Park367550132-34-0453605 Park Blvd PALO ALTO 94306-2853Pan, Nancy And Lee , Benson$96.00Park360551132-34-050180 Park Sharon Dr SAN JOSE 95136-2535Mahal, Jaswinder$96.00Park356152132-34-0523024 Ross Rd PALO ALTO 94303-4102Chase Wilton Llc$96.00Wilton21053132-35-012451 Wilton Ave PALO ALTO 94306-2859Song, Zhiqiang And Chen , Weiwei$96.00Wilton45154132-35-02518444 Forest Crossing Ct OLNEY 20832Tong, Peter And Pao , Chung Chian$96.00Wilton36555132-35-033215 Wilton Ave PALO ALTO 94306-2855Godshall, Kelvin V Et Al$96.00Wilton21556132-35-042P O Box 20089 STANFORD 94309-0089Williger, Edward M$642.00Fernando42157132-39-037Page 3Report Date: 7/5/2024(List Sorted by APN) Item 8
Attachment A - Weed Abatement
Resolution with 2024 PA Assessment
Report

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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A389 Matadero Ave PALO ALTO 94306-2833Mahany, Gary W And Kemp , Susan$96.00Matadero38958132-40-05333345 7th St UNION CITY 94587Zhu, Li And Wan , Fanny Trustee$96.00Park403259132-43-0253130 Ramona St PALO ALTO 94306-2922Ding, Zhimin And Zhu , Xinyi$96.00Ramona313060132-48-033613 Stanford Ave PALO ALTO 94306-1412Baumann, John R Trustee$642.00Stanford61361137-01-05933206 Falcon Dr FREMONT 94555Liang, Ke$96.00Yale212362137-01-134335 Panoramic Way BERKELEY 94704Culpepper, Benjamin J$96.00Wellesley232163137-02-0243028 Scott Blvd Unit C SANTA CLARA 950541080capa Llc$96.00Coolege108264137-03-0362153 Oberlin St PALO ALTO 94306-1318Mendelowitz, Louis I$96.00Oberlin215365137-03-0371289 College Ave PALO ALTO 94306-1345Stanford Jewish Center Inc$96.00Oberlin201766137-03-0472276 Harvard St PALO ALTO 94306-1351Bussey, Jason M And Sachiko$96.00Harvard227667137-05-0162195 Columbia St PALO ALTO 94306-1233Edelman, Andrea Trustee$96.00Columbia219568137-06-0361380 Miravalle Ave LOS ALTOS 94024-5744Kss Investment Llc$96.00El Camino Real370069137-11-0783793 La Donna Ave PALO ALTO 94306-3151Mehta, Bijal And Pallavi Trustee$96.00La Donna379370137-12-016721 Barron Ave PALO ALTO 94306Ashworth, Darren M And Imane Z$96.00Barron72171137-13-042788 Los Robles Av PALO ALTO 94306-3159Bloomquist, Lynda L Trustee$1,973.03Los Robles78872137-13-112827 Richardson Ct PALO ALTO 94303-4152Zhu Jay Jiabi Trustee & Et Al$642.00Orme402573137-20-0446 Atherton Oaks Ln ATHERTON 94027Juan, Chung-chiung And Su Chen$3,332.11El Camino Real414674137-24-03426 N Euclid Ave PASADENA 91101Leland Stanford Jr Univ The Bd$96.00Hillview346075142-16-059300 Pasteur Dr Alway Bldg STANFORD 94305Leland Stanford Jr Univ Bd$96.00Arastradero105076142-16-060Page 4Report Date: 7/5/2024(List Sorted by APN) Item 8
Attachment A - Weed Abatement
Resolution with 2024 PA Assessment
Report

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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A150 Portola Rd PORTOLA VALLEY 94025Leland Stanford Jr Univ Board$2,134.56Deer Creek349577142-16-062415 Broadway St 3rd Flr REDWOOD CITY 94063Leland Stanford Jr Univ The Bd Of$96.00Deer Creek78142-16-0645301 Stevens Creek Blvd SANTA CLARA 95051-7201Leland Stanford Jr University Board$3,621.75Deer Creek350079142-16-0664208 Ruthelma Ave PALO ALTO 94306-4109Shiu, Boon W And Choi , Keehyun$96.00Ruthelma420880148-02-0024206 Darlington Ct PALO ALTO 94306-4129Ferreira, Kavitha And Joao Carlos$96.00Darlington420681148-03-0374236 Darlington Ct PALO ALTO 94306-4129Wang, Youxiang And Li , Zhengqi$96.00Darlington423682148-03-0444201 Park Blvd PALO ALTO 94306-4144Bordia, Anupam And Surbhi$96.00Park420183148-03-060444 Del Medio Ave MOUNTAIN VIEW 94040-1161Karupasamy, Karthikeyan Trustee &$96.00Silvia433884148-12-0134346 Silva Ave PALO ALTO 94306-4421Jiang, Wei And Han , Qiuxia$96.00Silva434685148-12-0144350 Silva Ct PALO ALTO 94306-4422Brown, Thomas C And Wang , Kuo-$96.00Silva435086148-12-0164388 Silva Ct PALO ALTO 94306-4422Yin, Jun And Duanmu , Lan$96.00Silva438887148-12-028633 Arastradero Rd PALO ALTO 94306-3838Bonthu, Anand Trustee & Et Al$96.00Arastradero63388167-06-016639 Arastradero Rd PALO ALTO 94306-3838New Atlantis Llc$96.00Arastradero63989167-06-06312 Starr Way MOUNTAIN VIEW 94040Bachrach, Sylvia Rashmi Trustee &$642.00Oak Hill417990175-01-02512 Starr Way MOUNTAIN VIEW 94040Bachrach, Sylvia R Trustee$96.00Oak Hill416991175-01-026849 Mesa Ave PALO ALTO 94306-3710Jalilian, Mohammad$96.00Mesa84992175-01-037515 Flower St S Floor 25 LOS ANGELES 90071Weakland, Alan Trustee & Et Al$2,620.50Manuela424393175-02-053Po Box 60065 PALO ALTO 94306Smithwick Alton D And Ursula L$3,943.50Old Trace410394175-20-0785209 Watusi Bnd AUSTIN 78732-4403Joshi, Vivek Trustee & Et Al$96.00Mockingbird89095175-20-082Page 5Report Date: 7/5/2024(List Sorted by APN) Item 8
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2024 WEED ABATEMENT PROGRAMASSESSMENT REPORTCITY OF PALO ALTOSitusAPNOWNER ADDRESSTAX ROLLAMTExhibit A609 Arboleda Dr LOS ALTOS 94024Waters, Christopher J Trustee & Et$642.00Old Adobe418696175-20-0924150 Old Adobe Rd PALO ALTO 94306-3726Hao, Hsieh T And Ming C Trustee$96.00Old Adobe415097175-20-1053790 El Camino Real Unit 176 PALO ALTO 94306Vilkin, Peter D Trustee$96.00Old Adobe415598175-20-1103000 Alexis Dr PALO ALTO 94304-1303Palo Alto Hills Golf And Country$642.00Alexis300099182-35-0353130 Alexis Dr PALO ALTO 94304-1305Von Clemm, Peter F And Jennifer J$96.00Alexis3130100182-43-024966 Laurel Glen Dr PALO ALTO 94304-1322Jacobsen, Ruth E Trustee$642.00Laurel Glen966101182-43-038951 Laurel Glen Dr PALO ALTO 94304-1323Bogerty, Sharon D$96.00Laurel Glen951102182-49-004Ice House St CENTRAL HONG KONGYeh Knoll Holding Inc A Barbados$642.00Laurel Glen930103182-54-006931 Laurel Glen Dr PALO ALTO 94304-1323Sheth, Beerud Trustee & Et Al$642.00Laurel Glen931104182-54-0123121 Bandera Drive PALO ALTO 94304Ngai Family Trust$642.00Laurel Glen105182-54-013$41,597.76TOTALPage 6Report Date: 7/5/2024(List Sorted by APN) Item 8
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: August 5, 2024
Report #:2406-3197
TITLE
PUBLIC HEARING: Adoption of a Resolution Implementing the North Ventura Coordinated Area Plan (NVCAP), Amending the City’s Comprehensive Plan and Certifying the Supplemental Environmental Impact Report, Including a Statement of Overriding Considerations; and FIRST READING: an Ordinance Adding Chapter 18.29 and Amending Chapters 18.14, 18.24, and

16.65 in the Palo Alto Municipal Code as well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the NVCAP area. CEQA Status -- Supplemental Environmental Impact Report SCH #2023020691.

RECOMMENDATION
Staff recommend the City Council:

1. Adopt a Resolution (Attachment A) implementing the NVCAP and approving associated environmental work, including:
a. Certify the Supplemental Environmental Impact Report (SEIR) b. Make the findings required by California Environmental Quality Act (CEQA), including a Statement of Overriding Considerations
c. Adopt the Mitigation Monitoring and Reporting Program d. Adopt the NVCAP and amend the 2030 Comprehensive Plan

2. Introduce an Ordinance (Attachment B) to:
a. Adopt a new Chapter 18.29 (North Ventura (NV) District Regulations) in the Palo Alto Municipal Code and make other amendments to Title 18 (Zoning) to implement the NVCAP
b. Amend Chapter 16.65 (Citywide Affordable Housing Requirements) c. Amend the Zoning District Map and re-zone parcels within the NVCAP area

EXECUTIVE SUMMARY
In November 2017, the City Council initiated the NVCAP process. Soon after, the Council adopted goals and objectives and appointed Working Group members to guide the plan's development. The Working Group convened to discuss the plan's components and develop Item 9
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alternatives for consideration by the Planning and Transportation Commission (PTC) and the City Council.

In January 2022, the City Council endorsed a Preferred Plan, which was further refined in November of the same year. A draft NVCAP reflecting the Council's direction was released in May 2023, and staff received feedback from both the PTC and the Architectural Review Board (ARB).

On March 8, 2024, the City released the Revised Public Draft NVCAP along with Draft Supplemental Environmental Impact Report (SEIR) to solicit public comment on both documents. The 45-day comment period required by the California Environmental Quality Act (CEQA) ended on April 22, 2024. Staff received three public comment letters and one oral comment. The Final SEIR (Attachment C) addresses comments on the Draft SEIR and provides environmental analysis related to NVCAP implementation, including a finding of significant unavoidable impacts related to air quality and cultural resources necessitating Council agreement of a statement of overriding considerations to approve the plan.

Consideration of the NVCAP by the City Council is a major milestone; a culmination of extensive community outreach reflecting input from decision-makers and stakeholders during multiple public hearings on the plan alternatives, and the refinement of the Council-endorsed preferred alternative plan by consultants and staff. The Final Draft NVCAP (Attachment G) incorporates the feedback received from both the PTC and Architectural Review Board (ARB) on the previous versions, wherever feasible and appropriate.

The NVCAP will be implemented through the draft zoning ordinance (Attachment B). A new chapter (18.29) will be added to the Palo Alto Municipal Code (PAMC) to establish zoning districts and standards specific to the NVCAP. The report outlines the methodology used to develop the zoning ordinance and explains its relationship to the 2023-2031 Housing Element (Housing Element) and 2030 Comprehensive Plan (Comprehensive Plan).

BACKGROUND
The NVCAP area lies within the Ventura neighborhood of Palo Alto. It is comprised of approximately 60 acres, roughly bounded by Page Mill Road, El Camino Real, Lambert Avenue, and the Caltrain tracks. The plan area is near key community destinations such as the California Avenue Business District; California Avenue Caltrain Station; and Stanford Research Park.

Coordinated Area Plan
The City’s Comprehensive Plan, adopted in 2017, called for site specific planning in the North Ventura area. The City secured grant funding in 2017 to initiate the NVCAP project. On March 5, 2018, the City Council adopted seven goals and six objectives (Attachment E). Goals include adding to the City’s supply of multi-family housing, developing a transit accessible neighborhood with retail services, creating a connected street grid, developing community facilities, and encouraging sustainability.

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Upon adoption, the NVCAP will become an appendix to the Comprehensive Plan. It will serve as a guide for creating a walkable neighborhood within the plan area with housing options and improved connectivity for pedestrians, cyclists, and other modes of transportation. The NVCAP will provide a comprehensive policy framework which, in conjunction with the zoning ordinance, will implement the vision for the plan area.

Coordinated Area Plan Process
Development of the NVCAP followed the process contained within PAMC 19.10, Coordinated Area Plans. This chapter provides details on coordinated area plan initiation, plan development procedures, including the creation of goals and objectives; community involvement (the formation of a working group); public hearings, and adoption.

The nearly seven-year process of developing the NVCAP has involved an extensive public engagement, including two community workshops, 17 Working Group meetings, 6 Stakeholder Group meetings, and 2 online surveys in addition to numerous public hearings with the City Council and Planning and Transportation Commission. Table 1 highlights the key milestones in the process. Additional information on prior meetings can be found on the NVCAP project website at www.cityofpaloalto.org/nvcap
Table 1: Notable Project Milestones
Date Milestone
November 6, 2017 City Council initiated the coordinated area plan process March 5, 2018 City Council adopted Goals & Objectives for the plan April 30, 2018 City Council appointed members of the working group March 10, 2021 PTC recommendation on Preferred Plan
January 10, 2022 City Council endorsed a Preferred Plan alternative November 14, 2022 City Council further refined the endorsed plan May 2023 Public Draft NVCAP published
May 31, 2023 Study Session with Planning and Transportation Commission June 1, 2023 Study Session with Architectural Review Board June 8, 2023 Study Session with Historic Resource Board March 8, 2024 Revised Public Draft NVCAP and Draft SEIR released April 18, 2024 Study Session with Architectural Review Board on the Draft Zoning Ordinance and public hearing to solicit oral comments on the Draft SEIR
April 22, 2024 Last day of the 45-day Public Comment Period May 8, 2024 PTC recommendation hearing for adoption of NVCAP and NVCAP zoning ordinance
June 17, 2024 Last day of the 10-day Final SEIR Circulation Period June 18, 2024 City Council consideration of SEIR, Final Draft NVCAP, and NVCAP zoning ordinance
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Endorsed Preferred Plan Concept
The City Council endorsed a preferred land use plan for NVCAP in January 20221 and further refined the endorsed plan in November 20222. The staff reports from January and November 2022 contain additional background on the Preferred Plan development process. Attachment D summarizes the endorsed preferred alternative and the Council refinements. In summary, the Preferred Plan endorsed by the City Council includes:
•530 net new dwelling units
•Transitioning office space to housing
•Adaptive re-use of the former cannery
•Naturalization of Matadero Creek
•No parking minimums or maximums with NVCAP
•Focusing greater densities along El Camino Real and Park Boulevard A draft plan was released in May 2023 based on Council’s direction and further refinements of the Preferred Plan by staff and its consultants for consistency with state law and the Palo Alto Municipal Code (PAMC).

Revised Draft NVCAP
Staff presented the May 2023 Public Draft NVCAP at study sessions with the PTC on May 31, 20233, and ARB on June 1, 20234. The PTC and ARB’s comments and staff responses are included in the matrix in Attachment F. Based on feedback at the study sessions, the draft NVCAP was revised, where appropriate. In addition to incorporating comments received from the PTC and ARB, staff made further refinements to streamline the document. The Revised Public Draft NVCAP was published on March 8, 2024 along with the Draft SEIR.

Sobrato Development Agreement
In parallel to the NVCAP process, the Sobrato Organization, LLC (Sobrato) proposed the 200 Portage Avenue Townhome Project, which included, among other project details, demolition of a portion of the cannery building at 340 Portage Avenue to accommodate the new development. In September 2023, the City Council approved a Development Agreement with Sobrato for the redevelopment of a combined project site encompassing 14.65 acres at 200- 404 Portage Avenue, 3040-3250 Park Boulevard, 3201-3225 Ash Street, and 278 Lambert Avenue. The development agreement included demolition of a portion of the cannery site to accommodate the townhome development and dedication of approximately 3.25 acres of land 1 January 10, 2022 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/5/agendas- minutes-reports/agendas-minutes/city-council-agendas-minutes/2022/20220110/20220110pccsm-linked- updated.pdf#page=150
2 November 14, 2022 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/planning- amp-development-services/north-ventura-cap/nvcap-nov-14th-cc-packet_1.pdf 3 May 31, 2023 PTC Staff Report: https://www.cityofpaloalto.org/Departments/Planning-Development- Services/Planning-and-Transportation-Commission-PTC/Current-PTC-Agendas-Minutes 4 June 1, 2023 ARB Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/architectural-review-board/2023/arb-6.01-nvcap.pdf Item 9
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to the City adjacent to Matadero Creek for park and affordable housing uses. The development agreement was approved by the City in October 2023 and became effective November 1, 2023.

The Sobrato development is generally consistent with the proposed NVCAP zoning ordinance development standards. However, because the project was submitted and entitled prior to adoption of the NVCAP, it is not subject to the new NVCAP standards. When the 10-year term of the development agreement ends, conformance with the NVCAP will be required for all new projects in the development agreement area.

Economic Feasibility Study
An initial economic feasibility study, prepared in November 2020, assessed three land use alternatives. Much of the residential development in two of the lower density alternatives (Alternative 1 and 2) was identified as unlikely to be financially viable due to height and parking restrictions. Among the alternatives considered, Alternative 3, with the highest density and lower parking requirements, was the only alternative concluded to be financially viable. In March 2021, a supplemental economic feasibility study was prepared to assess the shortfall or funding gap for one of lower-density alternatives (Alternative 2) and the feasibility of a third alternative (Alternative 3) with an inclusionary requirement exceeding the current 15 percent standard. After reviewing the draft NVCAP in May 2023, the PTC requested an additional study because the City Council endorsed Preferred Plan was more similar to Alternative 1, the alternative with the lowest density, which was not part of the supplemental economic feasibility study prepared in March 2021. The requested study, however, was not prepared due to budget constraints as detailed in the fiscal analysis section of this report.

Feedback from Architectural Review Board
On April 18, 20245, the ARB conducted a public hearing to allow for comments on the Draft NVCAP and Draft SEIR. In a study session, they also reviewed and provided feedback on the draft NVCAP zoning ordinance. The ARB discussed development standards (Section 18.29.060) specifically and recommended several changes to the staff recommendation. These included recommendations related to increasing lot coverage and maximum height limits, reducing setbacks, encroachment of subsurface structures into setbacks, and certain lot coverage allowances for these encroachments. Since the NVCAP was discussed as a study session item, there was no formal motion. However, the ARB held an unofficial vote for the recommended changes, which passed with a 3-0-2 vote. The suggestions from ARB are detailed in the Analysis section.

Planning and Transportation Commission Recommendations
On May 8, 20246, the PTC reviewed the NVCAP project documents, focusing on development standards, particularly building heights and daylight impacts. The PTC discussed concerns with the height limit in the NV-MXM zoning district, since some locations border low-density 5 April 18, 2024 ARB Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/architectural-review-board/2024/arb-4.18-nvcap.pdf 6 May 8, 2024 PTC Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/3/agendas-minutes- reports/agendas-minutes/planning-and-transportation-commission/2024/ptc-5.08-nvcap-3.pdf Item 9
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residential areas. The PTC also reiterated the need for additional economic analysis related to the NVCAP and requested a map clarifying Street Yard setback requirements. The PTC unanimously recommended the NVCAP for adoption along with the draft zoning ordinance but made several modifications to the staff recommendation to forward for the City Council to consider.

The PTC voted 6-0-1 to recommend the City Council:

1. Consider the Draft Supplemental Environmental Impact Report

2. Adopt the NVCAP, including staff recommended modifications

3. Adopt a Draft Ordinance to:
a. Add a new Chapter 18.29 (North Ventura (NV) District Regulations) in the Palo Alto Municipal Code and make other amendments to Title 18 (Zoning) to implement the NVCAP
b. Amend Chapter 16.65 (Citywide Affordable Housing Requirements) c. Amend the Zoning District Map and re-zone parcels within the NVCAP area With the following modifications:

1. Extend the existing special setback requirement on Park Boulevard, which stops on Lambert Avenue, to Page Mill Road (not reflected in the Final Draft NVCAP; see Additional Recommendations Considered but Not Incorporated in the Analysis section of this report)

2. Ensure that the daylight plane requirements for the NVCAP be consistent with the comparable zoning districts (incorporated into the NVCAP Ordinance, Attachment B)

3. Confirm the City Council’s awareness of the economic feasibility study requirement per PAMC Chapter 19.10 (see Economic Feasibility Study in the Background section of this report)

4. Increase the maximum height for NV-R1 and NV-R2 zoning districts to 35 feet (incorporated into the Final Draft NVCAP)

5. Prepare a diagram to show Street Yard setbacks for NVCAP (Attachment I includes a map of the NVCAP zoning districts with street yard setback requirements) The PTC made a separate motion for the NV-MXM maximum height limit, which passed with a 4-2-1 vote:

6. Change the maximum height for the NV-MXM zoning district to 45 feet Two public speakers attended and commented on the NVCAP. Feedback was provided regarding the NVCAP project's timing in relation to approved or proposed development in the coordinated area plan boundary, potential harm to trees by allowing basement encroachment into setback areas, and the potential for developers to take advantage of increased development potential through use of State Density Bonus law.

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ANALYSIS
The NVCAP represents an important opportunity to plan proactively for a transit-oriented, mixed-use, mixed-income, and walkable neighborhood. The NVCAP sets forth a vision that is responsive to the history and unique character of the North Ventura neighborhood; considers the needs of current residents; puts forward near-term solutions to current challenges; establishes a long-term framework for desired growth so that more people can call North Ventura home; and invests in community infrastructure to support an equitable, resilient, and sustainable Palo Alto.

In November 2018, Council adopted the following six goals that were intended to help guide development of the NVCAP:

1. Housing and Land Use: Add multifamily housing in a transit-accessible neighborhood with mixed uses.

2. Transit, Pedestrian and Bicycle Connections: Create well-defined connections to transit and major roads.

3. Connected Street Grid: Create a connected street grid.

4. Community Facilities and Infrastructure: Integrate development of new services with private development.

5. Balance of Community Interests: Balance community-wide objectives with residents.

6. Urban Design, Design Guidelines and Neighborhood Fabric: Develop human-scale design and guidelines that strengthen neighborhood fabric.

Supporting these goals are six objectives:
•Use a Data Driven Approach
•Create a Comprehensive User-Friendly Document and Implementation •Provide a Guide and Strategy for Staff and Decision-Makers •Include Meaningful Community Engagement
•Determine Economic Feasibility
•Complies with California Environmental Quality Act
Throughout the plan development process, staff ensured that the NVCAP was substantially consistent with the adopted goals and objectives. Attachment E includes consistency analysis of each goal and objectives.

NVCAP Summary
The following summarizes the content of the NVCAP, released in March 2024. More detailed consistency analysis for each goal and objective for the NVCAP is included in Attachment E.

Chapter 1: Introduction
The introduction chapter provides an overview of the NVCAP physical and regulatory context.

The plan is shaped by the project goals and objectives, adopted and in-progress City plans and policies, recently enacted regional and state laws, and the comprehensive planning process.

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Chapter 2: Vision
The Vision chapter summarizes each framework that was built upon the goals and objectives of the NVCAP. These include:
•Urban design frameworks that calibrate the optimal mix of uses (Housing and Land Use); •Support a multi-modal mobility framework within the neighborhood (Transit, Pedestrian and Bicycle Connections) and how it connects to the rest of the City and the region (Connected Street Grid);
•Foster a regenerative and ecological framework to support the health of humans and wildlife while supporting the implementation of City’s Climate Action Plan (Community Facilities and Infrastructure and Balanced Community Interests); and •The neighborhood’s context-specific urban form (Urban Design, Design Guidelines and Neighborhood Fabric).

This chapter also includes land use programs that describe 530 net new dwelling units, approximately two acres of a potential park, and reduction of commercial space (office and retail) within the plan area, along with the land use map.

Design Standards and Guidelines (Chapters 3-6)— includes requirements that govern the construction and modification of the public realm including streets and open space, as well as new buildings. Standards are quantifiable, whereas guidelines are qualitative requirements. The following chapters include design standards and guidelines for the NVCAP:

Chapter 3: Public Realm
The Public Realm chapter includes requirements and guidelines that govern the construction and modifications of the public realm, including the sidewalk zone, traffic lanes and intersections, green infrastructure, paving, exterior lighting, wayfinding, and public art. These design standards and guidelines help achieve developing a human- scale neighborhood that strengthens and supports the neighborhood fabric. The standards and guidelines for the public realm also support the improved mobility network envisioned for the NVCAP by providing a better pedestrian and bicycle experience.

Chapter 4: Accessibility and Mobility
The Accessibility and Mobility chapter contains design standards and guidelines for multi-modal frameworks described in Chapter 2. The chapter also includes design concepts for gateway intersections and street design standards and guidelines. These contribute to creating and enhancing well-defined connections to transit, pedestrian, and bicycle facilities, as well as a connected street grid within the plan area.

Additionally, standards and guidelines are provided for the pedestrian realm and bike network, addressing first/last mile connections and bicycle facilities as shown in Chapter

2. This will support achieving the goals and objectives of the NVCAP. The chapter also includes standards and guidelines for transit access, vehicular circulation and parking, and TDM strategies.

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Chapter 5: Parks and Open Space
The Parks and Open Space chapter contains design standards and guidelines that govern improvements within park and open space areas such as Matadero Creek and the future public park. During the public engagement process, the community and working group members showed a great interest for naturalization of Matadero Creek, which is located in the northwest corner of the plan area near the intersection of Park Boulevard and Lambert Avenue. The NVCAP mandates a 100-foot riparian buffer around Matadero Creek to create an opportunity for the future naturalization. This chapter also discusses development of a public park near the creek. Additional standards and guidelines on programming and natural planting that protect the natural environment are included in this chapter to further develop and strengthen the neighborhood fabric.

Chapter 6: Site and Building Design
The Site and Building Design chapter contains design standards and guidelines for desired future built form and sets aspirations for how new buildings will contribute to the character of the NVCAP as it develops incrementally over time. It describes how building height and massing regulations are intended to respect the scale and character of the surrounding residential neighborhood as well as supporting the neighborhood fabric. The chapter also includes design standards and guidelines for integrating building frontages to ensure that required and encouraged ground floor uses are well integrated into the neighborhood. In addition, to protect and enhance the environment while addressing the principles of sustainability, the chapter describes various sustainable design standards and guidelines.

Chapter 7: Implementation
The Implementation chapter outlines the necessary steps to fulfill the vision of the plan, including funding, financing strategies, and capital investments. The chapter describes how the NVCAP document and NVCAP zoning ordinance would be used in conjunction with the rest of the zoning standards in PAMC Title 18. It also includes a list of implementation actions to achieve the NVCAP goals. Each action includes a description, as well as the responsible parties for implementation and the timeframe. Naturalization of Matadero Creek and development of a public park near Matadero Creek are identified as long-term infrastructure implementation actions. Additionally, several parking management related implementation actions are identified with mid-term to long-term timeframes.

Modifications to the Revised Draft NVCAP
While developing the zoning ordinance implementing the NVCAP, staff identified areas where further modifications were required for consistency and feasibility. These modifications were primarily to Chapter 4 (Accessibility and Mobility). Additional modifications were incorporated to address comments received during the 45-day public comment period of the Draft SEIR and Draft NVCAP. Other modifications include minor text and graphic revisions. The final draft NVCAP, which includes the modifications made since the release in March 2024, can be found Item 9
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in both clean and marked-up versions in Attachment G. This attachment also includes a matrix listing modifications with reasoning behind each modification.

Zoning Implementation
Staff prepared a draft ordinance (Attachment B) to implement the NVCAP by rezoning the parcels within the NVCAP area and establishing development standards for new NVCAP zoning districts. Each zoning district within the plan area is identified with the prefix, North Ventura (NV). The new zoning district standards reflect the varying residential and mixed-use densities anticipated within the plan area. Table 2 below summarizes the relationship between the NVCAP land use designations and the PAMC zoning district regulations. Figure 1 depicts the location of each proposed NVCAP zoning district.

The NVCAP zoning ordinance chapter is consistent with the structure of other zoning chapters with sections such as permitted uses, development standards, parking and loading, and special requirements. In addition to typical development standards, the NVCAP ordinance includes special requirements specific to the plan area, including office use restrictions, storefront guidelines, and ground floor commercial use regulations.

The draft ordinance also references the NVCAP document for several items, including the designated location of required and encouraged ground floor uses, requirements for active ground floor uses, specific site and building design requirements in Chapter 6, and public realm improvements. Both the NVCAP plan document and the NVCAP zoning ordinance are intended to be used together when designing or reviewing development proposals in the plan area.

Table 2: NVCAP Land Use Designation & Proposed Zoning District Crosswalk NVCAP Land Use
Classification
Anticipated
Density
(DU/AC)
Maximum
Height (FT)
Maximum Floor
Area Ratio (FAR)
Allowed Zoning
Districts
High-Density
Mixed-Use
61-100 65 3.0:1 NV-MXH
Medium-Density
Mixed-Use
31-70 55 2.0:1 NV-MXM
Low-Density
Mixed-Use
3-17 35 0.5:1 NV-MXL
High Density
Residential
61-100
61-100
65 65

3.0:1

3.0:1
NV-R4
NV-PF
Medium Density
Residential
16-30 45 1.5:1 NV-R3
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NVCAP Land Use
Classification
Anticipated
Density
(DU/AC)
Maximum
Height (FT)
Maximum Floor
Area Ratio (FAR)
Allowed Zoning
Districts
Low Density
Residential
1 or 2 units/lot 30 0.45:1 NV-R2
NV-R1
Parks NV-PF
Figure 1: NVCAP Proposed PAMC Zoning Designation Map
Staff notes that Figure 1 reflects the future vision for the entire NVCAP area. However, in accordance with the Sobrato Development Agreement (Ordinance #5595), areas that were rezoned to Planned Community in accordance with the Development Agreement will not be rezoned as part of the adoption of the draft ordinance. The City Council may consider rezoning and redesignating these parcels once the Development Agreement has expired.

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To create the development standards for each of the new NVCAP zoning districts in Chapter

18.29, staff reviewed comparable existing zoning districts in the PAMC. Development standards and permitted uses within each of the NVCAP zoning districts were selected to align with NVCAP’s goals, including the addition of 530 net new dwelling units. These standards primarily focus on density, FAR, height limits, and setback requirements.

Density
To establish appropriate density for the NVCAP plan, staff used a one-acre lot as the base to calculate realistic density for each land use designation. Several factors were considered in this calculation, including building height directed by City Council, NVCAP land use designations, and an average unit size of 1,250 square feet to promote diversity in unit sizes within the plan area.

Staff employed different FAR levels and the average unit size to arrive at a projected density and building size appropriate for each new NVCAP zoning district. The development standards are also intended to provide transitions between NV districts, and between existing development. Notably, other than the NV-R1 and NV-R2, the NV zone districts do not provide a maximum number of dwelling units per acre, relying instead on FAR and other development standards to control development.

FAR
The development standards tables include maximum residential FAR, maximum non-residential FAR, total mixed-use FAR, and a minimum mixed-use ground floor commercial FAR for the mixed-use zoning districts. The maximum FAR allowed for the NVCAP is 3.0, exceeding the maximum FAR of 2.0 allowed for other existing zoning districts. This higher FAR is intended to encourage higher density development, especially along El Camino Real and Park Boulevard (particularly for NV-R4 and NV-MXH zones).

Maximum Height
On April 18, 2024, the ARB conducted a public hearing to allow for comments on the Draft NVCAP and Draft SEIR. Considering the El Camino Real Focus area across from the NVCAP area, which has a maximum height limit of 85 feet, the ARB recommended increasing maximum height limits for NV-R4, NV-MXM, and NV-MXH to 65 feet. In addition, the ARB recommended increasing maximum height limits for NV-R3 to 55 feet.

Staff reviewed these suggestions prioritizing minimal impact on neighboring low-density areas and the Council’s endorsed preferred land use plan for NVCAP. This led to a recommendation of 45 feet for the NV-R3 and 55 feet for the NV-MXM, which are lower than the ARB's proposals.

The PTC expressed concerns about potential impacts on low-density areas. While exploring options like varied height limits for NV-MXM zoning districts, the PTC ultimately recommended 45-foot height limit, consistent with the Preferred Plan. The existing zoning district currently allows a maximum height of 50 feet. In addition, the El Camino Real Focus Area, which is located across from the plan area, currently allows up to 85 feet in height. As a result, the staff recommended height for the NV-MXM is 55 feet. Staff also modified the daylight plane Item 9
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requirements to reflect the existing zoning district requirements that minimize impacts low- density residential areas.

Table 4 compares NVCAP zoning district heights between Preferred Plan, ARB and PTC recommendations, and staff recommendations. The maximum height limits recommended by staff are reflected in the draft NVCAP zoning ordinance (Attachment B) and can be changed based on City Council direction. Any projects located within the NVCAP may utilize the state density bonus law which could result in a request for modifications to existing applicable development standards. Any projects requesting density bonus would be evaluated pursuant to PAMC Chapter 18.15 (Density Bonus) and could result in taller development with more floor area and use waivers or concessions to modify objectives standards.

Table 4: Maximum Height Comparison
Maximum Height Limit (feet)
Zoning
District
Preferred
Plan
ARB
Recommendation
PTC
Recommendation
Staff
Recommendation
NV-R1
NV-R2 30 30 35 35
NV-R3 35 55 55 45
NV-R4 55 65 65 65
NV-MXL 35 35 35 35
NV-MXM 45 65 45 55
NV-MXH 55 65 65 65
Parking
AB 2097 exempts development projects within a half mile of transit from minimum parking requirements. The map prepared for the NVCAP initially showed that the entire plan area was within a half-mile radius of the California Avenue Caltrain station, and therefore the NVCAP zoning ordinance did not include parking requirements. However, since the PTC meeting, staff realized the map contained incorrect information, and the NVCAP area includes some parcels outside the half-mile radius. The corrected NVCAP maps are included in Attachment G.

To avoid confusion and ensure consistent requirements within individual NVCAP zoning districts, staff recommend no minimum or maximum parking requirements within the NVCAP area. However, if the Council believes there is an interest in having parking requirements for areas of the NVCAP outside of the half-mile radius, the requirements in the proposed zoning ordinance (Attachment B) could be amended. However, within the NVCAP, a transportation demand management plan will be required for all new development projects and any other projects that meet the conditions under PAMC 18.52.030(i). This will help ensure vehicle miles traveled in the NVCAP are properly evaluated and the long-term mobility improvements envisioned for the area are realized.

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Other Modifications
There are other modifications made to the draft zoning ordinance per ARB and PTC:
•Lot Coverage. ARB recommended increasing lot coverage for higher density residential areas, including NV-R3 and NV-R4. The increased lot coverage for NV-R3 (from 40% to 60%) and NV-R4 (from 45% to 80%) has been incorporated into the draft NVCAP zoning ordinance in Attachment B.
•Street Yard Setback. ARB recommended a minimum street yard of 10 feet to encourage higher density and provide more flexibility in developing projects. Any street yards exceeding 10 feet were reduced to 10 feet, except for Olive Avenue in R-4, which maintains a minimum 20 feet street yard to reflect the existing stormwater treatment area along Olive Avenue.
•Daylight Plane Requirements. PTC recommended the NVCAP daylight plane requirements be made consistent with the requirements in the comparable zoning districts. The draft NVCAP zoning ordinance includes revised language necessary to implement this recommendation.
•Maximum Height for NV-R1 and NV-R2. PTC requested to increase the maximum height limits for low density residential zoning districts, NV-R1 and NV-R2, to 35 feet from 30 feet. This has been reflected in the draft NVCAP zoning ordinance.

Additional Recommendations Considered but Not Incorporated In addition to other items already discussed above, staff considered the following suggestions and recommendations from the ARB and PTC which have not been incorporated into the staff recommendation based on further analysis. The basis for these recommendations is detailed below.
•Setback Measurement and Lot Coverage Calculation. The Palo Alto Municipal Code Title 18 (Zoning) lacks clarity on applying setbacks to basements in multi-family and nonresidential projects. ARB requested specific language be codified to the zoning districts that allow higher density residential (NV-R3, NV-R4, NV-MXM, and NV-MXH) to encroach into front setbacks. However, this policy decision requires further discussion and analysis to determine appropriate standards. In addition, staff believe this is a larger policy decision of whether to allow encroachment of subsurface structures into setback areas, which impacts storm water management compliance, the quality of landscaped areas and tree plantings, groundwater recharge and potentially other considerations. As a result, this ARB recommendation is not reflected in the draft zoning ordinance. •Special Setback on Park Boulevard. The PTC recommended extending the special setback requirement on Park Boulevard, currently ending at Lambert Avenue, to cover up to Page Mill Road. The special setback requirement was not considered previously and the impact on those properties along Park Boulevard within the NVCAP area has not yet been analyzed. In addition, the implementation of a special setback requires additional procedures to notify the property owners and solicit feedback before Item 9
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implementation. As a result, this PTC recommendation is not reflected in the draft zoning ordinance.

Application Review Processing
The development applications for the NVCAP will follow the City’s entitlement review process in accordance with Title 18 of the PAMC. Development applications in the NVCAP will be reviewed the same way as those in other areas of the City. This typically includes review by the Architectural Review Board and approval by the Director unless appealed to the City Council. A Planning and Transportation Commission hearing would be required for certain permits like a Conditional Use Permit or Tentative Parcel Map. If any project is deemed Housing Development project under the state law, then no more than five public hearings will be included as part of its entitlement review process.

New development projects may be able to streamline their environmental analysis by tiering off of the NVCAP SEIR. For this to occur, the project’s scope cannot extend beyond the NVCAP’s CEQA analysis and would need to show consistency with the environmental analysis of the SEIR.

Any projects that have a scope beyond the CEQA analysis prepared for the NVCAP may need to prepare a separate environmental analysis and may not be able to “tier off” from the SEIR.

Pipeline Projects
Since the onset of the NVCAP project, property owners have been allowed to submit development applications consistent with the existing zoning code. Notable projects submitted and entitled since the NVCAP initiation include 3001 El Camino Real7, 3200 Park Boulevard8, and 3241 Park Blvd9. The zoning ordinance proposes to exempt these “pipeline projects” from compliance with the NVCAP due to the submittal of a complete planning entitlement application prior to the adoption of the NVCAP and its associated implementing zoning code amendments.

POLICY IMPLICATIONS
Comprehensive Plan
The NVCAP implements one component of Comprehensive Plan Program L.4.10.1, which directs staff to prepare a coordinated area plan for the North Ventura area and surrounding California Avenue area. Program L.4.10.1 outlines that the plan should describe a vision for the future of the North Ventura area as a walkable neighborhood with multi-family housing, ground floor retail, a public park, creek improvements and an interconnected street grid. 7 3001 El Camino Real: a 100% affordable housing project with 129 units. https://www.cityofpaloalto.org/News- Articles/Planning-and-Development-Services/30013017-El-Camino-Real 8 200 Portage: a project including partial demolition of cannery, construction of 74 dwelling units and renovation of cannery into research & development space with associated Development Agreement. https://www.cityofpaloalto.org/News-Articles/Planning-and-Development-Services/200-Portage-Avenue 9 3241 Park Blvd: a new 7,861 square foot office building. https://www.cityofpaloalto.org/Departments/Planning- Development-Services/Current-Planning/Projects/3241-Park-Boulevard Item 9
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The NVCAP provides a land use framework that encourages higher density development, including multifamily residential development and mixed-use development with higher density residential. The NVCAP also supports a variety of housing options, a diverse range of unit sizes and bedroom configurations, and price points to support Palo Alto residents at different stages of life. At build out, the NVCAP would add 530 new dwelling units. Section 2.3 (Ground Floor Edges) shows where ground floor uses would be required (along El Camino Real) and encouraged (other mixed use areas), lists what is considered active ground floor uses, and describes how these uses should be integrated to fit the urban fabric of the North Ventura neighborhood.

In addition to the land use framework, the mobility framework in Section 2.4 of the NVCAP emphasizes well-balanced and safe streets, with pedestrian and bicycle facilities designed for all ages, and accessible paths to transit. The NVCAP prioritizes local circulation and access but also envisions a fully integrated transportation network that goes beyond the plan area to ensure seamless connections for all users. Chapter 4 (Accessibility and Mobility) includes gateway intersection concept design and street design standards and guidelines that would support achieving these mobility visions and goals. By incorporating mixed-use development, interconnected streets, and pedestrian facilities, the NVCAP would achieve the walkable neighborhood envisioned in the Comprehensive Plan at buildout.

The NVCAP also includes a public park and open space design standards and guidelines that encourage development of a new park, naturalization of the Matadero Creek, and green stormwater infrastructure.

Land Use and Community Design Element
The NVCAP creates a series of new land use designations that are specific to the plan area. The resolution adopting the NVCAP includes a few minor changes to the Land Use and Community Design Element to reflect these new designations. In short, the resolution amends the Land Use and Community Design Element to acknowledge that Area Plans, like the NVCAP and SOFA CAPs have their own land use designations, which are defined within the respective documents.

The Land Use Map (Map L-6) will also be updated to clearly delineate areas that are subject to an Area Plan.

Housing Element
The Housing Element is one of seven mandatory elements within the Palo Alto Comprehensive Plan, which assesses the condition of the City's current housing and future needs of its residents through citywide housing goals, objectives, and policies. The City is required to update the Housing Element every eight years.

The City adopted the 2023-2031 Housing Element in May 2023. A revised Housing Element was considered by Planning and Transportation Commission and City Council at a joint meeting on April 15, 2024 and adopted by the City Council. The Housing Element includes the housing needs assessment, resources and inventory of potential housing sites, housing constraints, and Item 9
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housing element programs or implementation actions. The Housing Element identifies a total of 295 potential housing opportunity sites. Of the total, 17 housing opportunity sites are located within the NVCAP. The Housing Element estimated that the development capacity for these 17 sites would yield over 300 dwelling units.

In January 2024, an ordinance implementing Housing Element Program 1.1A and 1.1B became effective, rezoning housing opportunity sites for consistency with the Housing Element. The zoning changes apply to multi-family, commercial, and industrial zoning to accommodate greater housing production, including within the NVCAP. This includes modification of development standards to increase density and height. For housing opportunity sites, the proposed NVCAP development standards generally have more permissive standards compared to development standards from the January 2024 rezoning. Therefore, applying NVCAP development standards to housing opportunity sites within the plan area would not hinder achieving the densities projected in the Housing Element. In addition, the proposed ordinance updates Chapter 18.14 (Housing Incentives) for consistency.

Sustainability and Climate Action Plan
The Sustainability and Climate Action Plan (S/CAP) is a comprehensive document laying out the City’s strategy to achieve ambitious carbon reduction goals, while improving natural environment, adapting to climate impacts, and increasing livability for Palo Alto residents. The NVCAP’s goals to encourage mixed-use development and connected street grid with improved mobility network aligns with the S/CAP goals. The NVCAP requires a 30 percent reduction in trips to manage the transportation demand; this would contribute to one of the mobility goals of the S/CAP which calls for a 12% reduction in total vehicle miles traveled by 2030. The proposed NVCAP pedestrian and bicycle facilities and mobility improvements would also contribute to, and be consistent with, the S/CAP mobility goal to increase the mode share for active transportation and transit from 19% to 40% of local work trips by 2030. The NVCAP ecological framework to create opportunities to naturalize the Matadero Creek and to encourage green stormwater infrastructure would be consistent with the S/CAP’s Natural Environment goals to achieve a 10% increase in land area that uses green stormwater infrastructure.

FISCAL/RESOURCE IMPACT
The majority of the NVCAP project funding is from a $638,000 Santa Clara Valley Transportation Authority (VTA) Priority Development Area (PDA) grant. In compliance with the grant requirement, the 15% local funding match ($112,000) was achieved with the donation of private funds from the Sobrato Organization, who also donated an additional $138,000 for the environmental review study of the NVCAP. Additional General Funds ($17,700) were used for the historic evaluation by Page & Turnbull and the Matadero Creek analysis by WRA; and $62,000 of FY 2021 departmental salary savings was allocated to project management (due to staff vacancies). In 2021, the City was awarded $125,000 from the Local Early Action Planning (LEAP) grant to support the NVCAP.

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In October 2019, the City Council approved an expanded scope of work for the NVCAP project and contract with the consultant, Perkins & Will. However, the City Council did not approve the additional funding of $367,000 associated with the expanded scope. The project has not been fully funded to date and staff have completed essential tasks by eliminating other tasks or doing the work in-house. The lack of required resources has contributed to the timeline to complete this project.

Per the grant agreements with both Caltrans and HCD, the City must complete the NVCAP project by the grant due dates, or risk forfeiting the grant funds. In that case, the City would need to repay any grant funds expended towards the project. The City received extensions for both the PDA grant (June 30, 2026) and the LEAP grant (September 30, 2024). Upon adoption of the NVCAP, staff will submit reimbursement requests to receive the remaining PDA grant ($57,815.38) and LEAP grant ($30,000) funding.

STAKEHOLDER ENGAGEMENT
Consistent with PAMC Chapter 19.10 (Coordinated Area Plans), the City Council appointed a 14- member working group. The working group met 17 times over the course of two years and concluded their effort once alternatives were forwarded to the PTC and City Council for consideration. Notifications throughout the process have been sent to the working group, stakeholders, and property owners. The City maintains a project website with archives of working group, workshops, and public hearing materials related to the NVCAP.

ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act, the City of Palo Alto, staff prepared a Supplemental Environmental Impact Report for the NVCAP (SCH #2023020691).

Staff released a Notice of Availability of the Draft SEIR for the proposed project on March 8, 2024 for a 45-day public comment period that ended on Monday, April 22, 2024.

The Draft Supplemental Environmental Impact Report (SEIR) prepared for the NVCAP found that the impacts related to biological resources, archaeological resources, noise, and tribal cultural resources could be significant but mitigatable to less than significant. Impacts to historical resources would be significant and unavoidable because the project would involve modifications to an historic resource eligible for the California Register of Historic Resources in a manner that would not be consistent with the Secretary of the Interiors Standards. Buildout of the NVCAP, on a plan level, would have a significant and unavoidable criteria air pollutant emissions impact because the increase in population would be exceeded by the increase in VMT and daily trips. The statement of overriding considerations was prepared containing a list of the benefits that the project will bring to the City consistent with General Plan and NVCAP policies (Attachment A).

During the Architectural Review Board (ARB) meeting held on April 18, 2024, a community member addressed the Draft NVCAP, specifically urging rooftop gardens and the full naturalization of the creek without barriers. In addition, staff received three comment letters Item 9
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from public agencies (Caltrans, Santa Clara Valley Transit Authority, and Santa Clara Valley Water District) on the Draft SEIR by Monday, April 22, 2024, and the comments were generally related to each public agency’s jurisdiction and operations. Both oral and written comments are included in the Final Supplemental EIR (Final SEIR) as well as in Attachment H. Responses to comments on the Draft SEIR and associated modifications have been integrated into the Final SEIR for Council’s consideration prior to taking action on the environmental analysis and the proposed project.

Prior to the City Council hearing, the Final EIR has been circulated for 10 days to the responsible public agencies. The required 10-day circulation of the Final SEIR started on June 6, 2024 and ended on June 17, 2024.

NEXT STEPS
After the NVCAP is adopted and the SEIR is certified, the NVCAP will take effect immediately upon the passage of a resolution (Attachment A). Staff will then file a Notice of Determination (NOD) with both Santa Clara County and the State Clearinghouse for the SEIR within five days of the Council’s decision.

Following the zoning ordinance introduction at this meeting, a second reading of the ordinance will occur after the Council’s July 2024 recess. Once passed, the NVCAP zoning ordinance, along with other modifications in Title 18 of the Palo Alto Municipal Code implementing the NVCAP, will become effective 30 days after the second reading. This will allow developers to submit applications for new projects under the NVCAP.

ATTACHMENTS
Attachment A: Draft Resolution to Certify the SEIR and Adopt the NVCAP Attachment B: Draft Ordinance to Implement the NVCAP
Attachment C: Links to the Revised Public Draft NVCAP, Draft SEIR, Final SEIR Attachment D: Summary of the Endorsed Preferred Plan and Council Refinements Attachment E: Summary of Goals and Objectives Consistency Attachment F: 2023 PTC and ARB NVCAP Comments and Staff Response Attachment G: Final Draft NVCAP (including the redline version with modification from the Revised Public Draft, and a link to the clean version)
Attachment H: Public Comment Letters on Draft SEIR and Draft NVCAP Attachment I: Map of Street Yard setback requirements
Attachment J: Draft Verbatim Minutes NVCAP Excerpt from the May 8, 2024 PTC hearing APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 9
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RESOLUTION NO. ____
A Resolution of the City Council of the City of Palo Alto, Certifying a Supplemental Environmental Impact Report to the 2017 Comprehensive Plan Final Environmental Impact Report, Adopting a Statement of Overriding Considerations, and Adopting a Comprehensive Plan Amendment for the North Ventura Coordinated Area Plan

R E C I T A L S
A. California Government Code Section 65300 et seq. requires every city and county in California to adopt a General Plan, known in Palo Alto as its Comprehensive Plan, for its long-range development, and further, to periodically to update that plan to reflect current issues and conditions; and

B. On November 13, 2017, the City Council for the City of Palo Alto (City) certified a Final Environmental Impact Report (EIR) for the City of Palo Alto 2030 Comprehensive Plan through Resolution No. 9720, made findings in relation to the Final EIR, adopted a mitigation monitoring and report plan (MMRP), and adopted a statement of overriding considerations through Resolution No. 9721 and adopted the City of Palo Alto 2030 Comprehensive Plan through Resolution No. 9722; and

C. The City of Palo Alto 2030 Comprehensive Plan Policy L-1.7 and Program L-4.10 calls for the preparation of a plan for the North Ventura and surrounding California Avenue area in order to establish the future of the North Ventura area as a walkable neighborhood with multi- family housing, ground-floor retail, a public park, creek improvements, and an interconnected street grid; and

D. On November 6, 2017, the City Council adopted a Resolution No. 9717 to initiate the local planning process for a North Ventura Coordinated Area Plan in accordance with Palo Alto Municipal Code Section 19.10.020; and

E. On March 5,2018, the City Council approved preliminary Project Goals, Objectives, schedule milestones, and Plan boundaries for the North Ventura Coordinated Area Plan, recognizing that these may be modified during the planning process; and

F. On April 30, 2018, the City Council appointed a total of 14 members of the working group to advise the staff, boards/commissions, and the Council during the preparation of the plan; and

G. The City conducted extensive community outreach in multiple languages since the NVCAP process has initiated in November 2017 including 17 meetings of the NVCAP Working Group; several community pop-up events; numerous meeting with stakeholders including school district, commercial property owners and tenants, interest groups in housing and transportation; two community workshops; one meeting of the Architectural Review Board (ARB); two meetings of the Historic Resources Board (HRB); six meetings of the Planning and Transportation Commission (PTC); and seven meetings of the City Council; and Item 9
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H. On January 10, 2022, City Council endorsed a preferred plan alternative, which was further refined on November 14, 2022, which allows additional 530 dwelling units, reduces 278,000 square feet of office and up to 7,500 square feet of retail to accommodate the new dwelling units, and allow up to two acres of park, including an opportunity to renaturalize the Matadero Creek through establishment of a 100-foot riparian corridor buffer.

I. Pursuant to the provisions and requirements of CEQA and CEQA Guidelines Section 15163, the City as lead agency, prepared a Supplemental Environmental Impact Report to the 2017 Comprehensive Plan Final EIR (SEIR) to analyze the potential environmental impacts resulting from adopting the NVCAP; and

J. The SEIR analyzes the environmental impacts of the NVCAP, in conjunction with the 2017 Comprehensive Plan Final EIR, is the environmental document upon which adoption of the NVCAP is predicated; and

K. As provided in Government Code sections 65352 – 65352.5 the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and

L. No California Native American tribe requested consultation; and

M. In accordance with Government Code Section 65585 (b), on March 8, 2024, the City posted the SEIR and the draft NVCAP and requested public comment for a 45-day review period; and

N. On May 8, 2024, the PTC held a duly and properly noticed public hearing to consider a draft of the SEIR and the NVCAP, and recommended that the City Council adopt the draft NVCAP.

O. On June 10, 2024, the City Council conducted a duly and properly noticed public hearing to take public testimony, consider the SEIR, reviewed the NVCAP and all pertinent maps, documents and exhibits, including the staff report, and all attachments, and oral and written public comments.

NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby finds that, based on substantial evidence in the record:

SECTION 1. Record of Proceedings
The record of proceedings upon which the City Council bases its decision herein includes, but is not limited to: (1) the SEIR and the 2017 Comprehensive Plan Final EIR including all appendices and attachments cited and/or relied upon therein; (2) the staff reports, City files and records and other documents prepared for and/or submitted to the City relating to the 2017 Comprehensive Plan Final EIR, SEIR, and the NVCAP; (3) the evidence, facts, findings, and other determinations set forth in this Resolution; (4) the 2017 Comprehensive Plan; (5) all studies, data, and correspondence submitted by the City in connection with the SEIR and the NVCAP; (6) all documentary and oral evidence received at Item 9
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public workshops, meetings, and hearings; (7) all other matters of common knowledge to City decisionmakers, including City, state, and federal laws, policies, rules, and regulations, reports, records, and projections related top development within the City of Palo Alto and its surrounding areas. The location and custodian of records is the City Clerk of the City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94305.

SECTION 2. General CEQA Findings.

The City Council, in the exercise of its independent judgment, makes and adopts the following findings to comply with the requirements of CEQA, including Sections 15091, 15092, and 15093 of the CEQA Guidelines, based upon the entire record of proceedings for the Project. All statements set forth in this Resolution constitute formal findings of the City Council, including the statements set forth in this paragraph and in the recitals above.

1. The City determined to prepare a Supplemental EIR because the NVCAP would be built out and fully occupied by 2040, which exceeds the 2030 Comprehensive Plan’s development horizon of 2030; and the adoption of NVCAP could result in a new significant and unavoidable impact for cultural resources and air quality not previously analyzed, but only minor additions or changes would be necessary to make the Comprehensive Plan Final adequately apply to the NVCAP.

2. The City Council was presented with, and has independently reviewed and analyzed, the SEIR and other information in the record, and has considered the information contained therein prior to acting upon and adopting the Project. The City Council bases the findings stated below on such review.

3. The SEIR, in conjunction with the Comprehensive Plan Final EIR, provides an adequate basis for considering and acting upon the Project. The City Council has considered all of the evidence and arguments presented during consideration of the Project and the SEIR. In determining whether the Project may have a significant impact on the environment, and in adopting the findings set forth herein, the City Council certifies that it has complied with Public Resources Code Sections 21081, 21081.5, and 21082.2.

4. The City Council agrees with the characterization of the SEIR with respect to all impacts initially identified as “less than significant” and finds that those impacts have been described accurately and are less than significant as so described in the SEIR. This finding does not apply to impacts identified as significant or potentially significant that are reduced to a less than significant level by mitigation measures included in the SEIR. The disposition of each of those impacts and the mitigation measures adopted to reduce them are addressed specifically in the findings below.

5. Mitigation measures associated with the potentially significant impacts of the Project will be implemented through the Mitigation Monitoring and Reporting Program (MMRP) described below, which is the responsibility of the City to enforce. The MMRP associated with the SEIR works, for the NVCAP area, in addition to the MMRP for the Comprehensive Plan.

6. The SEIR considers a reasonable range of potentially feasible alternatives, sufficient to foster informed decision making, public participation and a reasoned choice, in accordance with CEQA.

7. The Revised Final SEIR contains responses to comments received on the Draft SEIR. The Final SEIR also contains corrections and clarifications to the text and analysis of the Draft SEIR where warranted. Factual corrections and minor changes added to the Draft SEIR have been made to merely clarify, amplify, and/or make insignificant modifications to the information provided in the Draft SEIR. The City Council does hereby find that such changes and additional information Item 9
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are not significant new information under CEQA because such changes and additional information do not indicate that any of the following would result from approval and implementation of the Project: (i) any new significant environmental impact or substantially more severe environmental impact (not already disclosed and evaluated in the Draft SEIR) would result from the Project or from a new mitigation measure proposed to be implemented, (ii) any feasible mitigation measure considerably different from those analyzed in the Draft SEIR that would lessen a significant environmental impact of the Project has been proposed and would not be implemented, (iii) any feasible alternative considerably different from those analyzed in the Draft SEIR that would lessen a significant environmental impact of the Project has been proposed that would not be implemented, or (iv) the Draft SEIR was fundamentally and basically inadequate and conclusory in nature that meaningful public review and comment were precluded. The City Council does find and determine that recirculation of the Final SEIR for further public review and comment is not warranted or required under the provisions of CEQA.

8. The City Council finds and certifies that the SEIR has been prepared and completed in compliance with CEQA and reflects the City of Palo Alto’s independent judgment and analysis as the lead agency.

9. The City Council makes findings in this resolution with respect to significant effects on the environment of the Project, as identified in the SEIR, with the understanding that all of the information in this Resolution is intended as a summary of the full administrative record supporting the SEIR, which full administrative record should be consulted for the full details supporting these findings.

10. Any modifications to the NVCAP directed by the City Council on June 18, 2024 do not change the conclusions of the SEIR and the Comprehensive Plan Final EIR.

SECTION 3. Significant Impacts Reduced to Less than Significant.

Pursuant to Public Resources Code Section 21081 and CEQA Guidelines Section 15091, the City Council hereby makes these findings with respect to the potential for significant environmental impacts from approval and implementation of the Project and the means for mitigating those impacts.

These findings do not attempt to describe the full analysis of each environmental impact contained in the SEIR. Instead, the findings provide a summary description of each impact, describe the applicable mitigation measures identified in the SEIR and adopted by the City, and state the findings on the significance of each impact after imposition of the adopted mitigation measures. A full explanation of these environmental findings and conclusions can be found in the SEIR. These findings hereby incorporate by reference the discussion and analysis in the SEIR that support the SEIR's determinations regarding significant project impacts and mitigation measures designed to address those impacts. The facts supporting these findings are found in the record as a whole for the Project.

In making these findings, the City ratifies, adopts, and incorporates into these findings the analysis and explanation in the SEIR, and ratifies, adopts, and incorporates into these findings the determinations and conclusions of the SEIR relating to environmental impacts and mitigation measures, except to the extent that any such determinations and conclusions are specifically and expressly modified by these findings.

The SEIR identified a number of significant and potentially significant environmental impacts that the Project will cause or to which the Project would contribute. The following significant effects can be fully addressed and reduced to less than significant through the adoption and implementation of standard Item 9
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project requirements incorporated as part of the Project and feasible mitigation measures. Those impacts, along with the standard project requirements and mitigation measures to reduce them to less than significant, are listed below as referenced in the SEIR.

Biological Resources
Impact BIO-1: Construction activities associated with build out of the Project could result in the loss of fertile eggs, nesting raptors or other migratory birds, or nest abandonment.
(a) Potential Impact. The impact identified above is described and discussed in Section 3.3.2.2 of the SEIR.
(b) Mitigation Measures. The following mitigation measure will be adopted and will be implemented as provided in the MMRP, and as further described in the remainder of these findings:

MM BIO-1.1: Construction During Migratory Bird and Raptor Nesting Season. To the extent feasible, construction activities shall be scheduled to avoid the nesting season. If construction activities are scheduled to take place outside the nesting season, all impacts to nesting birds protected under the Migratory Bird Treaty Act (MBTA) and California Fish and Game Code shall be avoided. The nesting season for most birds in Santa Clara County extends from February 1 through August 31.

If initial site disturbance activities, including tree, shrub, or vegetation removal, are to occur during the bird breeding season (February 1 through August 31), a qualified biologist shall conduct a pre-construction survey for nesting migratory birds and raptors. The survey for nesting migratory birds shall cover the project site itself and the immediate vicinity of the site, with the survey for nesting raptors encompassing the site and surrounding lands within 250 feet, where accessible. The survey shall occur within seven days prior to the onset of ground disturbance.

If active nests are detected, appropriate construction-free buffers shall be established. The buffer sizes shall be determined by the project biologist based on species, topography, and type of activity occurring in the vicinity of the nest. Typical buffers are 25 to 50 feet for passerines and up to 250 feet for raptors. The project buffer shall be monitored periodically by the project biologist to ensure compliance. After the nesting is completed, as determined by the biologist, the buffer shall no longer be required.

Following the conclusion of nesting activity and removal of the construction buffers, a report shall be submitted to the City summarizing the results of the survey including identifying any buffer zones, and outlining measures implemented to prevent impacts to nesting birds. (c) Finding and Rationale. The City Council finds that the above mitigation measure is feasible and that it would reduce the potential impacts on fertile eggs, nesting raptors or other migratory birds, or nest abandonment to a less-than-significant level. This mitigation measure is adopted by the City Council.

Accordingly, the City Council finds that changes or alterations have been required in, or incorporated into, the Project that would avoid or substantially lessen the significant environmental effect as identified in the SEIR.

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The 2030 Comprehensive Plan Update FEIR maps the NVCAP and surrounding area as “urban forest” and based on a survey of the California Natural Diversity Database, there is no special-status habitat located within the areas mapped urban forest. The channelized portion of the Matadero Creek also does not contain riparian habitat or sensitive natural communities. However, tree removal activities have the potential to disturb migratory birds resulting in a short-term reduction in potential nesting and foraging habitat as well as directly destroying active nests if present; however, it is anticipated that resident and migratory bird species would resume nesting and foraging behavior once the construction is complete, and would utilize existing nearby nesting and foraging habitat during construction. In addition, the above mitigation would ensure habitat or species avoidance through appropriately timed habitat surveys to determine absence/presence, pre-construction surveys to determine absence/presence, implementation of avoidance/preventative measures, passive removal efforts, on-site monitoring by qualified biologists, and/or establishment of no-construction buffer zones during construction.

Therefore, this impact would be reduced to a less-than-significant level. (d) Remaining Impact. Mitigation Measure BIO-1.1 specified above would reduce all potential impacts for future development under the Project to less than significant.

Noise
Impact NOI-1: Construction activities associated with build out of the Project could generate groundborne vibration capable of causing cosmetic or worse building damage or adversely nearby sensitive receptors.
(a) Potential Impact. The impact identified above is described and discussed in Section 3.10.2.3 of the SEIR.
(b) Mitigation Measures. The following mitigation measure will be adopted and will be implemented as provided in the MMRP, and as further described in the remainder of these findings:

MM NOI-1.1: Applicants for projects within the North Ventura Coordinated Area Plan area shall obtain a groundborne vibration study prior to the issuance of any discretionary permits that would allow the use of construction equipment within 22 feet or pile driving within 101 feet of existing structures. The study shall be prepared by a qualified professional in accordance with industry-accepted methodology, which include the recommended vibration assessment procedure and thresholds provided by public agencies such as Caltrans and the Federal Highway Administration. The study should identify necessary construction vibration controls to reduce both human annoyance and the possibility of cosmetic damage. Controls shall include, but not be limited to, the following measures:
 A list of all heavy construction equipment to be used for this project known to produce high vibration levels (tracked vehicles, vibratory compaction, jackhammers, hoe rams, etc.) shall be submitted to the City by the contractor. This list shall be used to identify equipment and activities that would potentially generate substantial vibration and to define the level of effort for reducing vibration levels below the thresholds.  Place operating equipment on the construction site as far as possible from vibration- sensitive receptors.

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 Use smaller equipment to minimize vibration levels below the limits.  Avoid using vibratory rollers and tampers near sensitive areas.  Select demolition methods not involving impact tools.  Modify/design or identify alternative construction methods to reduce vibration levels below the limits.
 Avoid dropping heavy objects or materials.
(c) Finding and Rationale. The City Council finds that the above mitigation measure is feasible and that it would reduce the potential impacts related to groundborne vibration to a less-than-significant level. This mitigation measure is adopted by the City Council. Accordingly, the City Council finds that changes or alterations have been required in, or incorporated into, the Project that would avoid or substantially lessen the significant environmental effect as identified in the SEIR.

MM NOI-1.1 requires a qualified professional to prepare a study outlining recommended vibration assessment procedures, thresholds, and construction controls. These recommendations would address both human annoyance and cosmetic damage, if any, to nearby single- and multi-family residences, which are noise-sensitive receptors defined by the Comprehensive Plan. Therefore, with implementation of MM NOI-1.1, impacts would be reduced to a less-than-significant level. (d) Remaining Impact. Mitigation Measure NOI-1.1 specified above would reduce all potential impacts for future development under the Project to less than significant.

Tribal Cultural Resources
Impact TCR-1: Future projects proposed under the North Ventura Coordinated Area Plan could potentially result in impacts to undiscovered tribal cultural resources. (a) Potential Impact. The impact identified above is described and discussed in Section 3.12.2.2 of the SEIR.
(b) Mitigation Measures. The following mitigation measure will be adopted and will be implemented as provided in the MMRP, and as further described in the remainder of these findings:

MM TCR-1.1: Cultural Sensitivity Training. Prior to issuance of any grading permit, the project applicant shall be required to submit evidence that a Cultural Awareness Training program has been provided to construction personnel. The training shall be facilitated by a qualified archaeologist in collaboration with a Native American representative registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3.

MM TCR-1.2: Sub-Surface Monitoring. Prior to issuance of any tree removal, grading, demolition, and/or building permits or activities, the applicant shall notify the Director of Planning, of grading and construction dates and activities that require a qualified archeologist and Native American monitor to be present on the project site. The City shall then notify the tribe via email correspondence 10 days prior to any grading or construction activities. If the tribe chooses not to send a monitor or does not respond within the 10 days, work shall continue without the monitor.

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A qualified archaeologist and a Native American monitor, registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3, shall be present during earthmoving activities including, trenching, initial or full grading, scraping or blading, lifting of foundation, boring, drilling, , or major landscaping. The qualified archaeologist and Native American monitor shall have the authority to halt construction activities in the event any cultural materials are encountered during ground-disturbing construction activities. The qualified archeologist and Native American monitor shall keep a daily monitoring log on days that monitoring occurs documenting construction activities that were monitored, location of the monitoring, and any cultural materials identified. These daily monitoring logs shall be made available to the City upon request.

MM TCR-1.3: Treatment Plan. In the event any significant cultural materials are encountered during construction, construction within a radius of 50 feet of the find would be halted, the Director of Planning shall be notified, and the on-site qualified archaeologist shall examine the find and make appropriate recommendations regarding the significance of the find and the appropriate treatment of the resource.

The qualified archeologist in collaboration with a Native American monitor, registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3, shall prepare and implement a treatment plan that reflects permit-level detail pertaining to depths and locations of excavation activities. The treatment plan shall contain, at a minimum:

1. Identification of the scope of work and range of subsurface effects (including location map and development plan), including requirements for preliminary field investigations.

2. Description of the environmental setting (past and present) and the historic/prehistoric background of the parcel (potential range of what might be found).

3. Monitoring schedules and individuals.

4. Development of research questions and goals to be addressed by the investigation (what is significant vs. what is redundant information).

5. Detailed field strategy to record, recover, or avoid the finds and address research goals.

6. Analytical methods.

7. Report structure and outline of document contents.

8. Disposition of the artifacts.

9. Security approaches or protocols for finds.

10. Appendices: all site records, correspondence, and consultation with Native Americans, etc.

The treatment plan shall utilize data recovery methods to reduce impacts on subsurface resources. The treatment plan must be reviewed and approved by the Director of Planning, or the Director’s designee prior to implementation of the plan.

MM TCR-1.4: Evaluation. The project applicant shall notify the Director of Planning, Native American Monitor, and Archeological Monitor, of any finds during grading or other construction activities. Any historic or prehistoric material identified in the project area during excavation Item 9
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activities shall be evaluated for eligibility for listing in the California Register of Historic Resources as determined by the California Office of Historic Preservation. Data recovery methods may include, but are not limited to, backhoe trenching, shovel test, hand augering, and hand-excavation. The techniques used for data recovery shall follow the protocols identified in the approved treatment plan. Data recovery shall include excavation and exposure of features, field documentation, and recordation. All documentation and recordation shall be submitted to the Northwest Information Center, and the Director of Planning. (c) Finding and Rationale. The City Council finds that the above mitigation measure is feasible and that it would reduce the potential impacts related to undiscovered tribal cultural resources to a less-than- significant level. This mitigation measure is adopted by the City Council. Accordingly, the City Council finds that changes or alterations have been required in, or incorporated into, the Project that would avoid or substantially lessen the significant environmental effect as identified in the SEIR.

There are no known Tribal Cultural Resources in the NVCAP area. In addition to complying with the Comprehensive Plan Policies L-7.15, L-7.17, and L-7.18, require mitigation, identification, and protection of archaeological resources, as well as L-7.16 that would ensure tribal consultation in accordance with California Government Code Section 65352.3, implementation of above mitigation measures would provide proper training and proper procedures to follow if any undiscovered tribal resources are uncovered during construction. Therefore, with implementation of mitigation measures TCR-1.1 through TCR-1.4, potential impacts would be reduced to a less-than-significant level. (d) Remaining Impact. Mitigation Measures TCR-1.1 through TCR-1.4 specified above would reduce all potential impacts for future development under the Project to less than significant.

SECTION 4. Significant and Unavoidable Impacts.

The Draft SEIR and the Revised Final SEIR documented that the Project would result in significant and unavoidable impacts which cannot be adequately mitigated through the adoption and implementation Item 9
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of feasible mitigation measures. Those impacts, along with mitigation measures to mitigate them to the extent feasible, are listed below as referenced in the SEIR.

Air Quality
Impact AIR-1: Build out of the Project would increase VMT and daily trips by six and 12.2 percent, respectively, and increase the service population by 4.1 percent. Since the increase in population would be exceeded by the increase in VMT and daily trips, the Project would have a significant criteria air pollutant emissions impact.
(a) Potential Impact. The impact identified above is described and discussed in Section 3.2.2.3 of the SEIR.
(b) Mitigation Measures. The following Comprehensive Plan mitigation measure are already adopted and will be implemented as provided in the MMRP for the Project, and as further described in the remainder of these findings:

AIR-2a: The City shall amend its local CEQA Guidelines and Municipal Code to require, as part of the City’s development approval process, that future development projects comply with the current Bay Area Air Quality Management District (BAAQMD) basic control measures for reducing construction emissions of PM10 (Table 8-2, Basic Construction Mitigation Measures Recommended for All Proposed Projects, of the BAAQMD CEQA Guidelines).

AIR-2b: The City shall amend its local CEQA Guidelines to require that, prior to issuance of construction permits, development project applicants that are subject to CEQA and have the potential to exceed the BAAQMD screening-criteria listed in the BAAQMD CEQA Guidelines prepare and submit to the City of Palo Alto a technical assessment evaluating potential project construction-related air quality impacts. The evaluation shall be prepared in conformance with BAAQMD methodology in assessing air quality impacts. If construction-related criteria air pollutants are determined to have the potential to exceed the BAAQMD thresholds of significance, as identified in the BAAQMD CEQA Guidelines, the City of Palo Alto shall require that applicants for new development projects incorporate mitigation measures (Table 8-3, Additional Construction Mitigation Measures Recommended for Projects with Construction Emissions Above the Threshold, of the BAAQMD CEQA Guidelines or applicable construction mitigation measures subsequently approved by BAAQMD) to reduce air pollutant emissions during construction activities to below these thresholds. These identified measures shall be incorporated into all appropriate construction documents (e.g., construction management plans) submitted to the City.

AIR-2c: To ensure that development projects that have the potential to exceed the BAAQMD screening criteria air pollutants listed in the BAAQMD CEQA Guidelines reduce regional air pollutant emissions below the BAAQMD thresholds of significance, the proposed Plan shall include policies that require compliance with BAAQMD requirements, including BAAQMD CEQA Guidelines.

AIR-2d: Implement Mitigation Measures TRANS-1a and TRANS-1b. In addition, to reduce long- term air quality impacts by emphasizing walkable neighborhoods and supporting alternative modes of transportation, the proposed Plan shall include policies that achieve the following:

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 Enhanced pedestrian and bicycle connections between commercial and mixed-use centers.

AIR-3a: The City of Palo Alto shall update its CEQA Procedures to require that future non- residential projects within the city that: 1) have the potential to generate 100 or more diesel truck trips per day or have 40 or more trucks with operating diesel-powered TRUs, and 2) are within 1,000 feet of a sensitive land use (e.g., residential, schools, hospitals, nursing homes), as measured from the property line of a proposed project to the property line of the nearest sensitive use, shall submit a health risk assessment (HRA) to the City of Palo Alto prior to future discretionary project approval or shall comply with best practices recommended for implementation by the BAAQMD.

The HRA shall be prepared in accordance with policies and procedures of the State Office of Environmental Health Hazard Assessment and the Bay Area Air Quality Management District. If the HRA shows that the incremental cancer risk exceeds the BAAQMD significance thresholds, the applicant will be required to identify and demonstrate that mitigation measures are capable of reducing potential cancer and noncancer risks to an acceptable level, including appropriate enforcement mechanisms.

Mitigation measures and best practices may include but are not limited to:
 Restricting idling on-site beyond Air Toxic Control Measures idling restrictions, as feasible.
 Electrifying warehousing docks.
 Requiring use of newer equipment and/or vehicles.
 Restricting off-site truck travel through the creation of truck routes.

Mitigation measures identified in the project-specific HRA shall be identified as mitigation measures in the environmental document and/or incorporated into the site development plan as a component of a proposed project.

AIR-3c: The proposed Plan shall include policies to mitigate potential sources of toxic air contaminants through siting or other means to reduce human health risks and meet the Bay Area Air Quality Management District’s applicable threshold of significance. Policies shall also require that new sensitive land use projects (e.g., residences, schools, hospitals, nursing homes, parks or playgrounds, and day care centers) within 1,000 feet of a major stationary source of TACs and roadways with traffic volumes over 10,000 vehicles per day consider potential health risks and incorporate adequate precautions, such as high-efficiency air filtration, into project design.

AIR-4: To reduce odor impacts, the proposed Plan shall include policies requiring:
 Buffers, mechanical, and other mitigation methods to avoid creating a nuisance.

TRANS-1a: Adopt a programmatic approach to reducing motor vehicle traffic, with the goal of achieving no net increase in peak-hour motor vehicle trips from new development, with an exception for uses that directly contribute to the neighborhood character and diversity of Palo Alto (such as ground-floor retail and below-market-rate housing). The program should, at a Item 9
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minimum, require new development projects above a specific size threshold to prepare and implement a Transportation Demand Management (TDM) Plan to achieve the following reduction in peak-hour motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category and size. These reductions are deemed aggressive, yet feasible, for the districts indicated.  45 percent reduction in the Downtown district
 35 percent reduction in the California Avenue area
 30 percent reduction in the Stanford Research Park
 30 percent reduction in the El Camino Real Corridor
 20 percent reduction in other areas of the city
TDM Plans must be approved by the City and monitored by the property owner or the project proponent on an annual basis. The Plans must contain enforcement mechanisms or penalties that accrue if targets are not met and may achieve reductions by contributing to citywide or employment district shuttles or other proven transportation programs that are not directly under the property owner’s control.

TRANS-1b: Require new development projects to pay a Transportation Impact Fee for all those peak-hour motor vehicle trips that cannot be reduced via TDM measures. Fees collected would be used for capital improvements aimed at reducing motor vehicle trips and motor vehicle traffic congestion.
(c) Findings. The above-noted mitigation measures are adopted Comprehensive Plan Final EIR mitigation measures. The Comprehensive Plan Final EIR concluded that the Comprehensive Plan would result in a significant and unavoidable impact on O3, PM10, and PM2.5. Future development under the NVCAP would be subject to the above mitigation measures; however, as the Comprehensive Plan Final EIR concluded that impact even with implementation of these mitigation measures would not be reduced to a less- than-significant level. In addition, the buildout of the NVCAP would conflict with the 2017 Clean Air Plan due to a net increase of O3, PM10, and PM2.5.
(d) Remaining Impacts. There are no other feasible mitigation measures available to mitigate this impact to a less-than-significant level due to the programmatic nature of the NVCAP. Even though future individual projects under the NVCAP might comply with air quality regulations, the overall program-level impact with the buildout of the NVCAP would remain significant and unavoidable. (e) Overriding Considerations. The environmental, social, economic and other benefits of the Project override any remaining significant adverse impacts of the Project relating to air quality as set forth in the Statement of Overriding Considerations below.

Cultural Resources
Impact CUL-1: Future projects proposed under the North Ventura Coordinated Area Plan could result in the demolition of historic buildings, including yet identified historic resources as defined in CEQA Guidelines Section 15064.5.
(a) Potential Impact. The impact identified above is described and discussed in Section 3.3.22 of the SEIR.

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(b) Mitigation Measures. The following mitigation measure will be adopted and will be implemented as provided in the MMRP, and as further described in the remainder of these findings:

MM CUL-1.1: Prior to project approval, future development projects that would demolish a potential historic resource shall be required to prepare a Historic Resource Evaluation (HRE) to evaluate whether the property is eligible for inclusion into the City’s Historic Resources Inventory, CRHR, and NRHP. The HRE shall address the feasibility of avoiding adverse impacts through project redesign, rehabilitation, or reuse of the resource. Preservation in place is always the preferred measure for mitigating direct impacts to historic resources. If the resource is to be preserved on the property, specific measures to protect the integrity of the structure and its setting shall be identified.

MM CUL-1.2: If impacts to the historic resource cannot be avoided, all feasible measures are required to be implemented to reduce the magnitude of the impact. At a minimum, the City shall require “Documentation” and “Commemoration” efforts in accordance with the guidelines established for Historic American Building Survey (HABS) consistent with the Secretary of Interior’s Standards for Architectural and Engineering Documentation. Additional measures could include relocation, incorporation of the resources into the project, and/or salvage. The documentation shall be completed by a qualified architectural historian or historian who meets the Secretary of the Interior’s Professional Qualification Standards for History and/or Architectural History.
(c) Findings. MM CUL-1.1 requires future projects that involve demolition or substantial alteration of a potential historic resource to prepare a Historic Resources Evaluation (HRE). This evaluation would explore ways to minimize harm to the resource through project redesign, rehabilitation, or reuse. MM CUL-1.2 ensures that all feasible measures are taken to minimize impacts if the resource cannot be entirely avoided. However, even with these measures in place, development under the NVCAP could still result in the demolition of historic resources, which would be considered a significant impact under CEQA.
(d) Remaining Impacts. No further feasible measures are available to eliminate the potential for significant cultural resource impacts. While implementing the mitigation measures outlined above (MM CUL-1.1 and MM CUL-1.2) can lessen the impact on potential historic resources, a significant impact may still occur. Even in scenarios where future development avoids demolition or substantial alteration, challenges remain. Adaptive reuse of historic resources for housing presents uncertainties regarding compliance with both the Secretary of the Interior Standards for Treatment of Historic Properties and the California Historic Building Code. Due to these uncertainties, the impact on cultural resources would remain significant and unavoidable.
(e) Overriding Considerations. The environmental, social, economic and other benefits of the Project override any remaining significant adverse impacts of the Project relating to historical resources as set forth in the Statement of Overriding Considerations below.

SECTION 5. Findings Regarding Project Alternatives.

Public Resources Code section 21002 prohibits a public agency from approving a project if there are feasible alternatives or feasible mitigation measures available which would substantially lessen the significant environmental effects of the project. When a lead agency finds, even after the adoption of all Item 9
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feasible mitigation measures, that a project will still cause one or more significant environmental effects that cannot be substantially lessened or avoided, it must, prior to approving the project as mitigated, first determine whether there are any project alternatives that are feasible and that would substantially lessen or avoid the project's significant impacts. Under CEQA, “feasibility” includes “desirability” to the extent that it is based on a reasonable balancing of the relevant economic, environmental, social, and technological factors, and an alternative may be deemed by the lead agency to be “infeasible” if it fails to adequately promote the project applicant’s and/or the lead agency's primary underlying goals and objectives for the project. Thus, a lead agency may reject an alternative, even if it would avoid or substantially lessen one or more significant environmental effects of the project, if it finds that the alternative’s failure to adequately achieve the objectives for the project, or other specific and identifiable considerations, make the alternative infeasible.

The City Council certifies that the Final SEIR describes a reasonable range of alternatives to the Project, which could feasibly obtain the basic objectives of the Project, and that the City Council has evaluated the comparative merits of the alternatives.

Chapter 2 of the Draft SEIR set forth the Goals and Objectives for the NVCAP. That list is incorporated herein by reference. In light of the applicant's objectives for the Project, and given that the Project is expected to result in certain significant environmental effects even after the implementation of all feasible mitigation measures, as identified above, the City hereby makes the following findings with respect to whether one or more of the alternatives evaluated in the Draft SEIR could feasibly accomplish most of the goals and objectives for the Project and substantially lessen or avoid one or more of its potentially significant effects.

No Project Alternative
The No Project Alternative assumes the NVCAP would remain as developed today with 142 residential units, 744,000 square feet of office, and 111,200 square feet of retail. The No Project Alternative is discussed in Section 7.2.2.1 of the Draft SEIR. The No Project Alternative is hereby rejected as infeasible because it would not achieve the Project objectives, as explained in Section 7.2.2.1 of the Draft SEIR.

This Alternative would not meet the NVCAP’s objectives to establish the future of the North Ventura area as a walkable neighborhood with multi-family housing, ground-floor retail, a public park, creek improvements, and an interconnected street grid. It would be in conflict with the Comprehensive Plan Policy L-1.7 and Program L-4.10. No Alternative was identified as an environmentally superior alternative because it would avoid the identified significant impacts to historic resources.

Alternative 2: Single-Story Adaptive Reuse Alternative
Alternative 2, Single-Story Adaptive Reuse Alternative, aims to minimize modifications by keeping the eligible historic resource building at 340 Portage Avenue at one story and creating 113 residential units, compared to the NVCAP, which proposes to accommodate 281 residential units with a 3-story development.

While Alternative 2 preserves the building’s character, particularly the monitor roof, significant changes would still be necessary for residential conversion. These include modifications to all exterior walls for windows and doors, interior compartmentalization with light wells, and substantial structural upgrades.

In addition, Alterative 2 produces a smaller number of residential units, which falls short of the project’s Item 9
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objectives.

Alternative 2 still contributes to significant and unavoidable air quality impacts due to increased VMT, but Alternative 2's reduced number of residential units (168 fewer than NVCAP) results in slightly lower GHG emissions. The potential construction-related impacts on migratory birds, construction air quality and noise, and tribal cultural resources would be same as the NVCAP and would require the same mitigation measures.

Alternative 2 would meet all of the NVCAP’s objectives but the alternative would provide fewer residential units than the NVCAP and would therefore be only partially consistent with Objective 1 (Housing and Land Use).

SECTION 6. Statement of Overriding Considerations.

Pursuant to Public Resources Code Section 21081 and Section 15093 of the CEQA Guidelines, this City Council adopts and makes the following Statement of Overriding Considerations regarding the remaining significant unavoidable impacts of the Project, as discussed above, and the anticipated economic, social and other benefits of the Project.

The City finds that: (i) the majority of the significant impacts of the Project will be reduced to less-than- significant and acceptable levels by the mitigation measures described in the Revised Final SEIR and approved and adopted by these Findings; (ii) the City's approval of the Project will result in certain significant adverse environmental effects that cannot be avoided even with the incorporation of all feasible mitigation measures into the Project; and (iii) there are no other feasible mitigation measures or feasible Project alternatives that would further mitigate or avoid the remaining significant environmental effects.

The significant effects that have not been mitigated to a less-than-significant level and are therefore considered significant and unavoidable are identified in Section 4 herein. Despite these potentially significant impacts, it is the City's considered judgment that the benefits offered by the Project outweigh the potentially adverse effects of these significant impacts. The substantial evidence supporting the following described benefits of the Project can be found in the preceding findings and in the record of proceedings.

The benefits of the NVCAP which the City Council finds serve as overriding considerations justifying its approval include the following:
(1) The NVCAP promotes a mix of residential, employment, and commercial uses within close proximity. This integrated design encourages residents to walk, bike, and utilize public transportation for daily needs, demonstrably reducing reliance on automobiles. With a multi- modal transportation improvement and reduced VMT, the NVCAP would contribute to cleaner air and help combat climate change by minimizing transportation-related GHG emissions. In addition, a walkable, mixed-use community fosters a more efficient lifestyle, potentially reducing overall energy consumption.
(2) The NVCAP prioritizes housing needs by planning for 530 residential units, directly contributing to the City's efforts to meet its Regional Housing Needs Allocation (RHNA) goal. This increase in housing stock creates more opportunity for affordable housing units within the NVCAP area as well. While there is a reduction in office space, this prioritizes housing needs and encourages the development of retail to create a “complete neighborhood.” This mixed-use approach offers Item 9
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residents amenities and services conveniently located within walking distance, potentially reducing reliance on cars and fostering a more vibrant community. (3) The NVCAP creates an opportunity for a new public park for recreation and enjoyment, while also creating an opportunity to naturalize Matadero Creek and a sufficient setback enhancing the environment and promoting a connection with nature. (4) The NVCAP's increased development capacity fosters a potential for revenue generation through impact fees. This additional revenue stream can be strategically allocated to enhance public amenities, ultimately improving the quality of life for residents within the NVCAP area and potentially throughout the city.
(5) The NVCAP strengthens the City's grant applications by demonstrating a commitment to well- planned development. Granting agencies often favor projects aligned with approved community plans that have undergone environmental review (CEQA). This process ensures the project considers potential impacts and incorporates strategies to minimize them, ultimately benefiting the community.

SECTION 7. Mitigation Monitoring and Reporting Program

(1) CEQA requires the lead agency approving a project to adopt a Mitigation Monitoring and Reporting Program (MMRP) for the changes made to the project that it has adopted in order to mitigate or avoid significant effects on the environment. An MMRP has been prepared and is recommended for adoption by the City Council concurrently with the adoption of these findings to ensure compliance with standard project requirements incorporated as part of the project and mitigation measures during Project implementation. As required by Public Resources Code section 21081.6, the MMRP designates responsibility and anticipated timing for the implementation of the mitigation measures recommended in the Final EIR. The MMRP will remain available for public review during the compliance period. (2) The City Council hereby adopts the MMRP for the Project attached hereto as Exhibit A and incorporated by reference, and finds, determines, and declares that the adoption of the MMRP will ensure enforcement and continued imposition of the mitigation measures recommended in the Final EIR, and set forth in the MMRP, in order to mitigate or avoid significant impacts on the environment.

SECTION 8. NVCAP Adopted as an Amendment to the Comprehensive Plan.

1. Based on the record of proceedings as a whole, the City Council makes the following findings and declarations regarding the NVCAP, attached hereto as Exhibit C and incorporated herein:
a. Adoption of the NVCAP is in the public interest. The NVCAP provides the framework to create a walkable neighborhood with multi-family housing, ground-floor retail, a public park, creek improvements, and an interconnected street grid for the North Ventura neighborhood.
b. The NVCAP is internally consistent and consistent with the rest of the Comprehensive Plan. As an integrated set of goals, policies, programs, and timelines, and quantified objectives, the NVCAP does not itself approve any specific development projects; it acknowledges land use and zoning changes that will be required and therefore it creates no inconsistencies with the Comprehensive Plan.

Item 9
Attachment A - Draft
Resolution to Certify the
SEIR and Adopt the
NVCAP

Item 9: Staff Report
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c. The NVCAP was developed through diligent effort by the City to achieve public participation of all segments of the community, as described in Chapter 1 of the NVCAP.

2. Based on substantial evidence in the record, including, but not limited to, implementation of the NVCAP’s visions for the NVCAP in Chapter 2 as well as land use policies and programs as well as design standards provided in Chapters 3 through 6, the City would allow 530 additional dwelling units, supporting much needed housing supply for the City, and approximately two acres of new public open space within the plan area. The NVCAP envisions creating and enhancing well-defined connections to transit, pedestrian, and bicycle facilities, including improved connections to the Caltrain Station and other major streets like Park Boulevard and El Camino Real. It would create an opportunity to re- naturalize Matadero Creek through the establishment of a 100-foot riparian corridor buffer.

3. The NVCAP is hereby adopted in its entirety, as an appendix and amendment to the 2030 Comprehensive Plan.

4. Additional amendments to the Land Use and Community Design Element of the Comprehensive Plan are necessary to reflect adoption of the NVCAP; these amendments are in the public interest as they implement the NVCAP and the land use policies and programs contained therein. Specific Comprehensive Plan Amendments are shown in detail in the attached Exhibit B.

5. The Director of Planning and Development Services and City Clerk are hereby directed to distribute copies of the NVCAP in the manner provided in Government Code Sections 65357 and 65589.7.

6. The Director of Planning and Development Services is directed to make the necessary changes to the Comprehensive Plan Land Use Map to reflect this amendment.

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Item 9
Attachment A - Draft
Resolution to Certify the
SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
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*** NOT YET APPROVED ***

SECTION 9. Effective Date.

This resolution will be effective upon adoption by the City Council.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED AS TO CONTENT:
____________________________ ____________________________ Chief Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services

Item 9
Attachment A - Draft
Resolution to Certify the
SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
37 Packet Pg. 224 of 554

NORTH VENTURA COORDINATED AREA PLAN 1
Mitigation Monitoring and Reporting Program
Section 21081 of the California Environmental Quality Act (CEQA) requires a Lead Agency to adopt a Mitigation Monitoring or Reporting Program (MMRP) whenever it approves a project for which measures have been required to mitigate or avoid significant effects on the environment. The purpose of the monitoring or reporting program is to ensure compliance with the mitigation measures during project implementation.

The North Ventura Coordinated Area Plan Supplemental Environmental Impact Report (EIR) concluded that the implementation of the project could result in significant effects on the environment and mitigation measures were incorporated into the proposed project or are required as a condition of project approval. This MMRP addresses those measures in terms of how and when they will be implemented.

This document does not discuss those subjects for which the EIR concluded that mitigation measures would not be required to reduce significant impacts.

Exhibit A
Item 9
Attachment A - Draft
Resolution to Certify the
SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
38 Packet Pg. 225 of 554

NORTH VENTURA COORDINATED AREA PLAN FINAL SUPPLEMENTAL EIR

CITY OF PALO ALTO

MITIGATION MONTIORING AND REPORTING PROGRAM
2 JUNE 2024
Environmental Impact Mitigation Measure
Implementation
Responsibility
Implementation
Timing
Monitoring
Responsibility Monitoring Action
Monitoring
Frequency
Air Quality
Impact AIR-1: Build out of
the NVCAP would increase
VMT and daily trips by six
and 12.2 percent,
respectively, and increase
the service population by 4.1
percent. Since the increase
in population would be
exceeded by the increase in
VMT and daily trips, the
NVCAP would have a
significant criteria air
pollutant emissions impact.

Comprehensive Plan Final EIR (FEIR) Mitigation
measures AIR-2a, AIR-2b, AIR-2c, AIR-2d, and TRANS-
1a and Trans 1b
AIR-2a: The City shall amend its local CEQA
Guidelines and Municipal Code to require, as part of
the City’s development approval process, that future
development projects comply with the current Bay
Area Air Quality Management District (BAAQMD)
basic control measures for reducing construction
emissions of PM
10 (Table 8-2, Basic Construction
Mitigation Measures Recommended for All Proposed
Projects, of the BAAQMD CEQA Guidelines).

City of Palo Alto
Planning and
Development
Services (PDS)
Department
During
development
approval process
City of Palo Alto
PDS Department
Ensure future development
complies with current BAAQMD
basic control measures
As development
applications are
received
AIR-2b: The City shall amend its local CEQA
Guidelines to require that, prior to issuance of
construction permits, development project
applicants that are subject to CEQA and have the
potential to exceed the BAAQMD screening-criteria
listed in the BAAQMD CEQA Guidelines prepare and
submit to the City of Palo Alto a technical
assessment evaluating potential project
construction-related air quality impacts. The
evaluation shall be prepared in conformance with
BAAQMD methodology in assessing air quality
impacts. If construction-related criteria air pollutants are determined to have the potential to exceed the
City of Palo Alto
PDS Department
During
development
approval process
City of Palo Alto
PDS Department
Ensure that projects that exceed
BAAQMD screening criteria
prepare construction air quality
assessments in conformance
with BAAQMD
As development
applications are
received
Item 9
Attachment A - Draft Resolution to
Certify the SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
39 Packet Pg. 226 of 554

NORTH VENTURA COORDINATED AREA PLAN FINAL SUPPLEMENTAL EIR

CITY OF PALO ALTO

MITIGATION MONITORING AND REPORTING PROGRAM
NORTH VENTURA COORDINATED AREA PLAN 3
Environmental Impact Mitigation Measure
Implementation
Responsibility
Implementation
Timing
Monitoring
Responsibility Monitoring Action
Monitoring
Frequency
BAAQMD thresholds of significance, as identified in
the BAAQMD CEQA Guidelines, the City of Palo Alto
shall require that applicants for new development
projects incorporate mitigation measures (Table 8-3,
Additional Construction Mitigation Measures
Recommended for Projects with Construction
Emissions Above the Threshold, of the BAAQMD
CEQA Guidelines or applicable construction
mitigation measures subsequently approved by
BAAQMD) to reduce air pollutant emissions during
construction activities to below these thresholds.

These identified measures shall be incorporated into
all appropriate construction documents (e.g.,
construction management plans) submitted to the
City.

AIR-2c: To ensure that development projects that
have the potential to exceed the BAAQMD screening
criteria air pollutants listed in the BAAQMD CEQA
Guidelines reduce regional air pollutant emissions
below the BAAQMD thresholds of significance, the
proposed Plan shall include policies that require
compliance with BAAQMD requirements, including
BAAQMD CEQA Guidelines.

City of Palo Alto
PDS Department
During
development
approval process
City of Palo Alto
PDS Department
Ensure that projects that exceed
BAAQMD screening criteria
prepare air quality assessments
in conformance with BAAQMD
As development
applications are
received
AIR-2d: Implement Mitigation Measures TRANS-1a
and TRANS-1b. In addition, to reduce long-term air
quality impacts by emphasizing walkable
neighborhoods and supporting alternative modes of
transportation, the proposed Plan shall include
policies that achieve the following:
 Enhanced pedestrian and bicycle connections
between commercial and mixed-use centers.

City of Palo Alto
PDS Department
During
development
approval process
City of Palo Alto
PDS Department
Ensure that Transportation
Demand Management (TDM)
Plans incorporate enhanced
pedestrian and bicycle
connections
As development
applications are
received
TRANS-1a: Adopt a programmatic approach to
reducing motor vehicle traffic, with the goal of
achieving no net increase in peak-hour motor vehicle
trips from new development, with an exception for
uses that directly contribute to the neighborhood
City of Palo Alto
PDS Department
During
development
approval process
City of Palo Alto
PDS Department
Require projects implement a
TDM Plan to achieve established
trip reductions.

As development
applications are
received
Item 9
Attachment A - Draft Resolution to
Certify the SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
40 Packet Pg. 227 of 554

NORTH VENTURA COORDINATED AREA PLAN FINAL SUPPLEMENTAL EIR

CITY OF PALO ALTO

MITIGATION MONTIORING AND REPORTING PROGRAM
4 JUNE 2024
Environmental Impact Mitigation Measure
Implementation
Responsibility
Implementation
Timing
Monitoring
Responsibility Monitoring Action
Monitoring
Frequency
character and diversity of Palo Alto (such as ground-
floor retail and below-market-rate housing). The
program should, at a minimum, require new
development projects above a specific size threshold
to prepare and implement a Transportation Demand
Management (TDM) Plan to achieve the following
reduction in peak-hour motor vehicle trips from the
rates included in the Institute of Transportation
Engineers’ Trip Generation Manual for the
appropriate land use category and size. These
reductions are deemed aggressive, yet feasible, for
the districts indicated.
 45 percent reduction in the Downtown district
 35 percent reduction in the California Avenue
area
 30 percent reduction in the Stanford Research
Park
 30 percent reduction in the El Camino Real
Corridor
 20 percent reduction in other areas of the city
TDM Plans must be approved by the City and
monitored by the property owner or the project
proponent on an annual basis. The Plans must
contain enforcement mechanisms or penalties that
accrue if targets are not met
and may achieve
reductions by contributing to citywide or
employment district shuttles or other proven
transportation programs that are not directly under
the property owner’s control.

City of Palo Alto
PDS Department
At the building
permit issuance
City of Palo Alto
PDS Department
Collect Transportation Impact
Fees for peak-hour trips that
cannot be reduced.

As development
applications are
received
Item 9
Attachment A - Draft Resolution to
Certify the SEIR and Adopt the
NVCAP

Item 9: Staff Report
Pg.
41 Packet Pg. 228 of 554

NORTH VENTURA COORDINATED AREA PLAN FINAL SUPPLEMENTAL EIR

CITY OF PALO ALTO

MITIGATION MONITORING AND REPORTING PROGRAM
NORTH VENTURA COORDINATED AREA PLAN 5
Environmental Impact Mitigation Measure
Implementation
Responsibility
Implementation
Timing
Monitoring
Responsibility Monitoring Action
Monitoring
Frequency
AIR-3a: The City of Palo Alto shall update its CEQA
Procedures to require that future non-residential
projects within the city that: 1) have the potential to generate 100 or more diesel truck trips per day or
have 40 or more trucks with operating diesel-
powered TRUs, and 2) are within 1,000 feet of a
sensitive land use (e.g., residential, schools,
hospitals, nursing homes), as measured from the
property line of a proposed project to the property
line of the nearest sensitive use, shall submit a
health risk assessment (HRA) to the City of Palo Alto
prior to future discretionary project approval or shall comply with best practices recommended for
implementation by the BAAQMD.

The HRA shall be prepared in accordance with
policies and procedures of the State Office of
Environmental Health Hazard Assessment and the
Bay Area Air Quality Management District. If the HRA
shows that the incremental cancer risk exceeds the
BAAQMD significance thresholds, the applicant will
be required to identify and demonstrate that
mitigation measures are capable of reducing
potential cancer and noncancer risks to an
acceptable level, including appropriate enforcement
mechanisms.

Mitigation measures and best practices may include
but are not limited to:
 Restricting idling on-site beyond Air Toxic Control
Measures idling restrictions, as feasible.
 Electrifying warehousing docks.
 Requiring use of newer equipment and/or
vehicles.
 Restricting off-site truck travel through the
creation of truck routes.

Palo Alto City CouncilAugust 5, 2024

Palo Alto City Council
August 5, 2024