EXHIBIT “C”
COMPENSATION (AMENDED, REPLACES PERVIOUS)
AMENDMENT NO. 1
The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth below, up to the not to exceed budget amount for each Program. The program budget for the term of the Agreement is provided in the tables below noting the total program budget (Table C.1.1), the budget spent to date (Table C.1.2) and the remaining program budget for the term of this agreement (Table C.1.3)
For BEA, the compensation is comprised of start-up fee, site assessment fees, performance payments and customer incentive payments based on the reported energy and water savings. The not -to- exceed consultant payments over the term of this agreement are given as follows:
Program start-up fee $26,645 (2%)
Site assessment fees $288,000 (26%)
Performance payments $ 260,683 (23%)
Customer incentive payments $522,000 (47%)
Additional Services $20,000 (2%)
Total not-to-exceed BEA payment to CONSULTANT over the term of this agreement = $1,117,328
CITY shall pay the BEA start-up fee based on completion of Task A.1.2 (Develop program plan), Task A.1.3 (Develop program documents), and Task A.1.4 (Establish BEA customer incentive levels).
Site assessments are compensated at the rate of $2,000 for in- person assessment, and $600 for virtual assess ment, payable upon the delivery of assessment report to CPAU Project Manager. Virtual assessments are defined as assessments completed through virtual or phone interviews and/or data transfers from the customer in order to produce an assessment report. Performance payments are compensated based on the rate schedule in Table C.1, payable upon the verification of installed measures.
Table C.1 .1 below represents the total program budget (November 15, 2022 -November 14, 2026):
Program Start-Up Fee: $26,645
Site Assessment Fees: $288,000
Performance Payments: $260,683
Customer Incentive Payments: $522,000
Additional Services: $20,000
Total Program Budget: $1,117,328
Table C.1.2 below represents Program budget spent from November 15, 2022 -June 30, 2024:
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Program Start-Up Fee: $26,645
Site Assessment Fees: $80,000
Performance Payments: $4,536
Customer Incentive Payments: $36,446
Total Allocated Program Budget: $147,627
Table C.1.3 below represents Program budget allocation for July 1, 2024 -November 14, 2026:
Program Start-Up Fee: $0
Site Assessment Fees: $208,000
Performance Payments: $256,147
Customer Incentive Payments: $485,554
Additional Services: $20,000
Total Allocated Program Budget: $969,701
Table C.2 Performance payment rate for Small Business Energy Advisor
Description of Compensation Performance payment rate
Energy savings for all retrofit
efficiency projects
$1.05/kWh for 1st year gross savings (January
1, 2025 – November 14, 2026)
$0.1092/kWh for 1st year gross savings
(November 15, 2022 – December 31, 2024)
Gas savings for all retrofit efficiency
projects
$1.76/therm for 1st year gross savings (January
1, 2025 – November 14, 2026)
$0.5226/therm for 1st year gross savings
(November 15, 2022 – December 31, 2024)
Water efficiency savings (retrofit
measures)
$2.42/CCF for 1st year gross savings (January 1,
2025 – November 14, 2026)
$1.95/CCF for 1st year gross savings (November
15, 2022 – December 31, 2024)
Electric savings tied to water
efficiency measure
Electric savings tied to water efficiency measure
$0.87/kWh for 1st year gross savings (January 1,
2025 – November 14, 2026)
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$0.117/kWh for 1st year gross savings
(November 15, 2022 – December 31, 2024)
Gas savings tied to water efficiency
measure
$0.83/therm for 1st year gross savings (January
1, 2025 – November 14, 2026)
$0.65/therm for 1st year gross savings
(November 15, 2022 – December 31, 2024)
Payments for BEA Site Assessments: CPAU will cease making BEA site assessment payments if the difference between the cumulative site assessment fees and the cumulative Performance Payments exceeds 50% of the Performance portion of the total BEA budget. CONSULTANT may submit previously completed BEA site assessments for payment if BEA delivers additional savings while still maintaining the above ratio.
CPAU may (but shall have no obligation to) modify this payment restriction to allow greater site assessment activity and fees relative to Performance Payments only upon the written approval by the CPAU Project Manager.
CONSULTANT shall invoice CPAU for BEA site assessment upon completion of the audit report at each customer site. CONSULTANT shall invoice CPAU for the performance payment and customer incentive payment upon completion of post-installation QC and submission of rebate application to CPAU.
For BETAP, the compensation is comprised of start -up fee, site assessment fees, and performance payments based on the reported energy savings. The program budget for the term of the Agreement is provided in the tables below noting the total program budget (Table C.3.1), the budget spent to date (Table C.3.2) and the remaining program budget for the term of this agreement (Table C.3.3).
The not-to-exceed consultant payments over the term of this agreement are given as follows:
Program start-up fee $30,000 (2%)
Site assessment fees $638,000 (44%)
Performance payments $786,386
(54%)
Total not-to-exceed payment for BETAP over the term of this agreement = $1,454,386
CITY shall pay the BETAP start-up fee based on completion of Task B.1.2 (Develop program plan) and Task B.1.3 (Develop program documents).
BETAP site assessments are compensated at the rate of $2,500 per project site and $600 for virtual assessment, payable upon the delivery of assessment report to CPAU Project Manager. Virtual assessments are defined as assessments completed through virtual or phone interviews and/or data transfers from the customer in order to produce an assessment report. Performance payments are compensated based on the rate schedule in Table C.2, payable upon the verification of installed measures.
Table C.3.1 below represents the total program budget (November 15, 2022-November 14, 2026):
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Budget Amount
Program Start-Up Fee $30,000
Site Assessment Fees $638,000
Performance Payments $786,386
Additional Services N/A
Totals $1,454,386
Table C.3.2 below represents Program budget spent from November 15, 2022-June 30, 2024:
Budget Amount
Program Start-Up Fee $30,000
Site Assessment Fees $130,000
Performance Payments $312
Additional Services N/A
Totals $160,312
Table C.3.3 below represents Program budget allocation for July 1, 2024-Novemeber 14, 2026:
Budget Amount
Program Start-Up Fee $0
Site Assessment Fees $508,000
Performance Payments $786,074
Additional Services N/A
Totals $1,294,074
Table C.4 Performance payment rate for Business Electrification Technical Assistance Program
Description of Compensation Performance payment rate
Electrification savings $0.145/kWhe
Payments for BETAP Site Assessments: CPAU will cease making BETAP site assessment payments if the difference between the cumulative site assessment fees and the cumulative Performance Payments exceeds 50% of the Performance portion of the total BETAP budget. CONSULTANT may submit previously completed BETAP site assessments for payment if BETAP delivers additional savings while still maintaining the above ratio.
CPAU may (but shall have no obligation to) modify this payment restriction to allow greater site assessment activity and fees relative to Performance Payments only upon the written approval by the CPAU Project Manager.
CONSULTANT shall invoice CPAU for BETAP site assessment upon completion of the assessment report at each customer site. CONSULTANT shall invoice CPAU for the performance payment upon the completion of Customer Project Completion Sign-off.
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REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in -house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. There are no reimbursable expenses authorized in this Agreement.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization via email from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1, Schedule of Rates. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement
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EXHIBIT C-1
SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS)
AMENDMENT NO. 1
Table C.3: Hourly Rates
Position Hourly Rate
Senior Program Director / Program Director $215
Program Portfolio Manager / Senior Program Manager $160 Program Manager $137
Senior Engineering Manager / Engineering Manager $172
Energy Engineer $160
Senior Marketing Account Manager / Marketing Account
Manager
$120
Senior Account Manager / Account Manager $119
Sr. Field Manager / Field Manager $172
Sr. Commercial Field Specialist / Commercial Field Specialist $134 Program Analyst / Operations Analyst $106
Operations Specialist / Operations Coordinator $93
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: December 16, 2024
Report #:2411-3746
TITLE
Approval of Contract Amendment Number 3 to Contract #S20178065 with OIR Group, in the Amount of $20,000 and for a six-month extension to continue Independent Police Auditing Services in Palo Alto. CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or designee to execute Amendment No. 3 to Contract #S20178065 with OIR Group (Attachment A) to extend the contract through July 31, 2025 and add $20,000 for the continuation of independent police auditing services in Palo Alto. This amendment results in a revised total contract not-to-exceed amount of $232,500.
BACKGROUND AND ANALYSIS
Since 2006, Palo Alto has utilized an Independent Police Auditor (IPA) to conduct secondary review of defined investigations of uniformed Police Department personnel and provide related services. Since the inception of the IPA program, the City has contracted with the Office of Independent Review (OIR Group), to provide these services. Michael Gennaco and Stephen Connolly, the principals of OIR Group, are the OIR staff who provide these services to Palo Alto.
The City last issued a Request for Proposals (RFP) for independent police auditing services in 2019 and three firms submitted proposals. The contract has been amended two times to date.
Staff is extending this current agreement to allow time to perform an RFP process as it has been five years since the last RFP for this service.
FISCAL/RESOURCE IMPACT
This contract amendment adds $20,000 to this contract to cover the activities to be done between January 2025 and June 2025. The IPA contract is administered through the Clerk’s Office and funded through the City Council budget. The Fiscal Year 2025 Operating Budget includes funding for the existing contract. The funding for the amendment will come from the City Council Operations Contract Services budget.
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STAKEHOLDER ENGAGEMENT
The public has an opportunity to engage with the Independent Police Auditor with the City Council twice per year when the IPA does a study session with the IPA. Additionally, members of the public can send information directly to the IPA at the contact information on the Independent Police Auditor webpage
(https://www.cityofpaloalto.org/Departments/Police/Accountability/Independent-Police- Auditor). No specific engagement was done for this contract amendment.
ENVIRONMENTAL REVIEW
Not a project.
ATTACHMENTS
Attachment A: OIR Group Contract Amendment No 3 - Contract S2018065 APPROVED BY:
Ed Shikada, City Manager
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AMENDMENT NO. 3 TO CONTRACT NO. S20178065
BETWEEN THE CITY OF PALO ALTO AND
MICHAEL GENNACO DBA OIR GROUP
This Amendment No. 3 (this “Amendment”) to Contract No. S20178065 (the “Contract” as defined below ) is entered into as of December 9, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “CITY”), and MICHAEL GENNACO DBA OIR GROUP, a sole proprietor, located at 7142 Trask Avenue, Playa Del Rey, CA, 90293 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of independent police auditor services, as detailed therein.
B. The Parties now wish to amend the Contract in order to (1) increase the compensation by Twenty Thousand Dollars ($20,000) from Two Hundred Twelve Thousand and Five Hundred Dollars ($21 2,500) to a new not to exceed amount of Two Hundred Thousand Thirty-Two Thousand Five Hundred Dollars ($232,500), (2) extend the contract term date from January 1, 2025 by an additional six months to June 30, 2025, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean C ontract No. S20178065 between CONSULTANT and CITY, dated December 16, 2019, as amended by:
Amendment No.1, dated July 20, 2021
Amendment No.2, dated January 1, 2023
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:
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“The term of this Agreement shall be from the date of its full execution through June 30, 2025, unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereb y amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (also referred to herein as the “Basic Services”), and reimbursable expenses (if specified in Exhibit “C”), (“Basic Services”), and reimbursable expenses, shall not exceed Two Hundred Twelve Thousand Five Hundred Dollars ($212,500). In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Twenty Thousand Dollars ($20,000) for the performance of Additional Services. CONSULTANT agrees to complete all Basic Services, including specified reimbursable expenses, within this amount. In the event Additional Services (defined below) are authorized, the total compensation for Basic Services, Additional Services and specified reimbursable expenses shall not exceed Two Hundred Thirty-Two Thousand Five Hundred Dollars ($232,500). The applicable rate schedule is set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amounts of compensation set forth herein shall be at no cost to the CITY.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Se rvices shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.”
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/ are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6 . Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
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(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the P arties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
MICHAEL GENNACO DBA OIR GROUP
Officer 1
By:
Name:
Title:
Attachments:
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.
Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.
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Exhibit B
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
Consultant shall complete reports for calendar years 2020, 2021, 2022, 2023, 2024 and 2025.
Beginning in calendar year 2023, the following additional specific schedule shall apply:
In calendar year 2023, CONSULTANT shall complete two reports, for publication in approximately February/March and August 2023, containing all matters completed since the last published report.
In calendar year 2024, CONSULTANT shall complete two reports, for publication in approximately February/March and August 2024, containing all matters completed since the last published report.
In calendar year 2025, CONSULTANT shall complete one report, for publication in approximately February/March 2025, containing all matters completed since the last published report.
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Exhibit C
COMPENSATION, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed up to the not-to-exceed amount of: Fifteen Thousand Dollars ($15,000).
A. Travel from CONSULTANT’S office to Palo Alto City Hall, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement.
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SCHEDULE OF EXPENDITURES
For the convenience of the Parties, the following identifies the historic and expected annual expenditures by type and amount under the Agreement, including Amendments One and Two. All dates refer to calendar years:
2020
• Basic services compensated at rate of $25,000, resulting in $25,000 in compensation paid.
2021 (Amendment One effective approximately July 1, 2021) • January 1, 2021 through June 30, 2021, basic services compensated at rate of $25,000 annually, resulting in $12,500 in compensation paid for six months of services. • July 1, 2021 through December 31, 2021, basic services rate increased to $40,000 annually to reflect additional scope, resulting in $20,000 in compensation paid for six months of services.
2022
• Basic services compensated at rate of $40,000, resulting in $40,000 in compensation paid. • Reimbursable travel – two in-person appearances at Council in spring and fall 2022 • Additional services – Consulting project #1 (Recruitment and Hiring) initiated, with task order budgeted at $10,000.
2023
• Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid.
• Reimbursable travel – two in-person appearances at Council expected, in spring
and fall 2023.
• Additional services – Consulting project #1 (Recruitment and Hiring) completed. $10,000 remaining for Additional Services if desired by City.
2024
• Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid.
• Reimbursable travel – two in-person appearances at Council expected, in spring and fall 2024
2025
• Basic services compensated at rate of $20,000, expected to result in $20,000 in compensation paid.
• Reimbursable travel – one in-person appearance at Council expected, in spring 2025
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: December 16, 2024
Report #:2410-3668
TITLE
Approval of Professional Services Contract Number C25192045 with Urban Planning Partners, Inc., in the Amount Not to Exceed of $165,573 for Phase I of the Car Free Ramona Street Project for a Period of One Year, Direct Staff to Return with an Amendment to Approve Phase II; Approval of a Budget Amendment in the General Fund; and Adopt a Resolution Continuing the Closure of a Portion of Ramona St. through 2025; CEQA Status – categorically exempt.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Contract No.
C25192045 (Attachment A), with Urban Planning Partners, Inc. (UPP), for Phase I of the Car Free Ramona Street project for a term of one year, and a total Not to Exceed Amount of $165,573, including $163,148 for basic services and $2,425 for additional services; and
2. Direct staff to return with a contract amendment to approve Phase II with UPP, with a Not to Exceed Amount of $233,763, to support additional stakeholder outreach and street design for long-term street improvements, for a total Not to Exceed amount of $399,336, and required budget appropriation action for Council consideration in 2025, and
3. Amend the Fiscal Year 2025 Budget Appropriation for the General Fund (2/3 vote needed) by:
a. Increasing funding in Non-Departmental for the Car Free Ramona Street Project Phase I by $165,573, and
b. Decreasing the Budget Stabilization Reserve by $165,573; and
4. Adopt the attached resolution to continue the closure of the half-block of Ramona Street through 2025.
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EXECUTIVE SUMMARY
A portion of Ramona Street between University and Hamilton Avenues, in Downtown Palo Alto, has been car-free since 2020. The City Council has directed staff to follow necessary steps to make this closure permanent and to develop outdoor dining standards and guidelines to create a unique visitor experience with enhanced street amenities, signage, and art.
The scope of work for the project is divided into two Phases. Phase I includes focused stakeholder engagement on development of outdoor dining standards for a car free street, including guidance on enclosures, size, and aesthetic features for parklets and other outdoor dining. This Phase also includes a street design for near-term improvements including bollards to replace barriers, planters, street amenities, landscaping, and signage.
Implementation of Phase 1 improvements will include replacement of the temporary barriers, modifications to vehicle pavement markings to restrict vehicular traffic while permitting emergency access, upgrades to street furniture and equipment, and new wayfinding signage.
Phase II includes a street design for long-term improvements including signage and gateway elements reflecting the historical significance of the street, decorative paving, new lighting and street amenities, enhanced landscaping, and public art, as well as broader stakeholder engagement with relevant Boards, Commissions, and Committees, downtown stakeholders, and the Palo Alto community at large.
Although scoping and costs for both Phases I and II have been developed, staff is only recommending contract award and associated budget amount for Phase I at this time. Upon completion of Phase I, staff will bring back recommendations related to Phase II, including a contract amendment for the consultant. The Not to Exceed contract amount for Phase I is $165,573.
Lastly, the attached resolution will continue to authorize the City Manager to close the half- block of Ramona between Hamilton and University to vehicular traffic through 2025. This will allow continuity while the general plan amendment and CEQA review necessary to close the street permanently are completed (anticipated for Spring 2025).
BACKGROUND
Ramona Street between University and Hamilton Avenues, in Downtown Palo Alto, has been identified as architecturally significant in the local historic and architectural survey and has been adopted by the City as a landmark district.
A portion of this street has been closed off to vehicular traffic since 2020 and is now referred to as Car Free Ramona Street. The City Council has directed staff to take the necessary steps to make this closure permanent and staff is working separately with a consultant to bring forward a General Plan amendment to make this portion of Ramona a permanent car-free street.
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guidelines to create a unique visitor experience with enhanced street amenities, signage, and art.
Currently, restaurants on the car-free portion of Ramona Street offer outdoor dining either in parklets or on sidewalks and streets. The parklets and outdoor dining on this street are still governed by the temporary parklet program and were excluded from the ongoing parklets regulations adopted in June 2024, in recognition of the car-free nature of this street.
ANALYSIS
Scope of Work
The scope of work for the car-free Ramona Street project will be performed in two phases, with Phase I focused on outdoor dining standards and street design for near-term improvements and Phase II focused on street design for longer-term improvements.
Phase I includes focused stakeholder engagement, development of outdoor dining standards, an evaluation of the historical context, and a street design plan and signage for near-term improvements. Outdoor dining standards will be specific to a car free street and include guidance on enclosures, size, and aesthetic features for parklets and other outdoor dining.
Phase 1 will be closely coordinated with the annual Public Works street re-surfacing project.
This coordination will ensure street re-surfacing and minor sidewalk repairs are completed before the businesses re-build parklets and outdoor dining areas to comply with the new standards.
Construction drawings for street design, including bollards, planters, limited street amenities, landscaping, and signage are included in the scope of work for Phase 1. Implementation of Phase 1 improvements will include replacement of the temporary barriers, modifications to vehicle pavement markings to restrict vehicular traffic while permitting emergency access, upgrades to street furniture and equipment, and new wayfinding signage. Funding for the physical infrastructure of this work will need to be identified and appropriated as part of the annual budget process.
The scope of work for Phase II includes broader stakeholder engagement with relevant Boards, Commissions, and Committees, downtown stakeholders, and the Palo Alto community at large.
It also includes a street design for long-term improvements, including signage reflecting the historical significance of the street, decorative paving, new lighting and street amenities, enhanced landscaping, and public art.
Staff is currently recommending approval of the contract for Phase I only. Upon completion of Phase I, staff will bring forward options for Council discussion, including connecting the project scope to historic Centennial Alley and to the University Avenue streetscape project. Based on these discussions, a contract amendment for Phase II shall be brought forward for Council consideration. Funding for the implementation of Phase II will also need to be discussed as part of the discussions with the City Council about the scope of Phase II work. Funding could be Item 15
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appropriated through Council action with approval of the Phase II contract or through the annual budget process and could incorporate additional funding mechanisms such as grants and/or assessment districts.
Estimated Timeline for Phase I
Table # 1
Stakeholder
Outreach
Outdoor Dining
Standards
Street and Signage Design Construction
Winter 2024-
Spring 2025
Complete by Spring
2025
Complete by Summer 2025 Summer 2025: Street re-surfacing and minor sidewalk repairs.
Summer 2025-Winter 2025:
Installation of bollards, planters,
signage, limited improvements to
landscaping and street amenities.
Consultant Selection
Since several projects related to downtown streetscape and outdoor dining standards are underway, it was deemed in the City’s best interests to select from one of the firms already familiar with the City’s stakeholders and Council and community priorities related to the proposed project. This would allow both efficiency and continuity and enable the project to progress quickly.
On July 18, 2024, the City sent a request for proposals to the three firms currently working on projects closely related to the Car Free Ramona Street project. The three firms included Urban Field Studio, CSW/ST2, and Urban Planning Partners, Inc. (UPP). Urban Field Studio is working on street design and outdoor dining standards for a car-free California Avenue, CSW/ST2 is working on the University Avenue Streetscape Design, and UPP is working on the ongoing parklet standards, designs, and program implementation.
On August 13, 2024, the City received proposals from two firms, CSW/ST2 and UPP. The CSW/ST2 team included the firms of Gates and Associates and Fehr & Peers as sub-consultants on their proposal. The UPP team included the firms of PGA design and BKF Engineers as sub- consultants on their proposal.
An evaluation panel comprised of staff from the City Manager’s Office, Office of Transportation, and Public Works reviewed the proposals and evaluated the two firms based on the following criteria:
a. Quality of the proposal
b. Quality, performance and effectiveness of the solution, goods and/or services c. Consultant experience
d. Cost
e. Consultant’s ability to perform the contract
f. Consultant’s prior record of performance with the City.
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UPP was selected as the top ranked consultant for the project because of their experience, their proposed approach, the team’s ability to perform the work within the desired timeline, and their prior performance with the City. A Notice of Intent to Award was sent on August 30 and no protests were received.
It was anticipated that the informal proposals would be under $85,000 but due to the extensive stakeholder engagement requested, lack of existing topographic surveys, and the fact that the project requires specialized historical research and branding, both proposals came in at much higher costs. An exemption to formal competitive solicitation pursuant to Palo Alto Municipal Code section 2.30.360(b)(2) was approved by the City Manager.
FISCAL/RESOURCE IMPACT
The total not to exceed amount of the consultant contract for Phase I is $165,573. The cost for Phase I is $165,573 and the cost for Phase II is $233,763. In the FY 2025 budget, $50,000 was appropriated for the car free Ramona Street project, however, this money is being used to complete the CEQA analysis for making the street permanently car free. A budget amendment to increase the FY 2025 appropriation for this project in the amount of $165,573 is thereby required to complete this work. Approval of this action would decrease the Budget Stabilization Reserve (BSR) to approximately $54.3 million or 18.4% of the FY 2025 Adopted budget. This amount is based on FY 2025 budget adjustment actions detailed in the 2026-2035 Long Range Financial Forecast (Report 2405-30681) that was presented to the Finance Committee on December 3, 2024.
STAKEHOLDER ENGAGEMENT
In Phase I, the consultant will conduct focus group and community meetings, prepare information for a dedicated project webpage, and present at the Retail Committee and City Council meetings. Stakeholder engagement will be focused on outdoor dining standards and near-term street improvements. If the City proceeds with Phase II, the consultant will present to relevant Boards, Commissions, and Committees, and engage downtown stakeholders and the larger Palo Alto community to solicit input on long-term streetscape improvements during that Phase.
1 December 3, 2024 Finance Committee Meeting:
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ENVIRONMENTAL REVIEW
The recommended actions are exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (existing facilities); 15304 (minor temporary use of land); and 15262 (planning study).
ATTACHMENTS
Attachment A: City of Palo Alto Contract No. C25192045
Attachment B: Resolution Extending City Manager’s Authority to Temporary Close a Portion of Ramona Street through 2025
APPROVED BY:
Ed Shikada, City Manager
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CITY OF PALO ALTO CONTRACT NO. C25192045
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND URBAN PLANNING PARTNERS, INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 16th day of December, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and URBAN PLANNING PARTNERS, INC. , a California Corporation, located at 388 17 th Street Suite 230, Oakland CA 94612 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to develop clear outdoor dining standards and street design for the car-free portion of Ramona Street (the “Project”) and desires to engage a consultant to develop outdoor dining standards, a street design, and wayfinding signage in connection with the Project ( the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through December 31, 2025 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Sixty-Three Thousand One Hundred Forty- Eight Dollars ($163,148) . T he hourly schedule of rates , if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Two Thousand Four Hundred Twenty -Five Dollars ($2,425) for the performance of Additional Services ( as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed One Hundred Sixty -Five Thousand Five Hundred and Seventy-Three Dollars ($165,573), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A . CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services , if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part o f this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .
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Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C -1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement , as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increas es in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any c hange order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and pa yments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT . The partie s agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the pri or written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:
PGAdesign
BKF Engineers
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcon tractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Hannah Chan Smyth Email: [email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’ s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Ashwini Kantak, City Managers Department, 250 Hamilton Avenue Palo Alto, CA , zipcode: 94301, . CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 1 4. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court cost s and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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final judgment of a court of competent jurisdiction.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.
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construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Ag reement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections wil l survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
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To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregna ncy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Preferred Purchasing p olicies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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(3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentia lity obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, ei ther oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
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SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT No. C25192045 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
URBAN PLANNING PARTNERS, INC.
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
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Lynette Dias
Associate Principal
Carla Violet
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.
Tasks 1 and 3 are divided into Phase 1 and Phase 2 work. Task 2 only encompasses Phase 1 work. Funding for Phase 1 is listed in Exhibit C to this Agreement; Phase 2 is not funded by the original version of this agreement and requires an amendment to fund Phase 2. Phase 2 work shall not begin until authorized and funded by an amendment to this Agreement.
TASK 1. STAKEHOLDER ENGAGEMENT
The CONSULTANTS shall work collaboratively with the City to implement engagement that is tailored to the goals of the project and is responsive to the needs of the community. The CONSULTANTS shall learn from the City on where the community is currently at, what has worked well, and where there is opportunity for improvement. Outreach will be tailored to the following three goals:
Share, Listen, and Understand. The CONSULTANTS shall discuss the project in the context of the City’s existing and ongoing outdoor dining and streetscape improvement projects, the project goals, and how the project advances the City’s Comprehensive Economic Development Strategy while enhancing the unique character of the Historic Ramona Street area. They will listen to the community’s interests and concerns and come to understand the features and character of Ramona Street that they want to maintain and enhance.
Define and Measure Community Character. Input from the community will be used to identify key elements that contribute to Ramona Street’s historic character, understand what creates a positive outdoor dining experiences, and what makes an overall positive atmosphere on car-free streets. Establishing shared terminology and removing the subjective standards will help build community ownership over the outdoor dining standards and street design. Shape and Refine Outdoor Dining Standards. The CONSULTANTS will solicit input on design preferences and implementation questions through interactive tools such as polls and surveys and facilitated discussions. The community will be able to see how their feedback has been incorporated in the product(s).
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TASK 1, PHASE 1 (Tasks 1A-1E)
Phase 1 will concentrate on outdoor dining standards and interim interventions for Ramona Street. This phase will kick off with a single hybrid meeting that provides a high-level overview of the project and its timeline, introducing key elements and laying the groundwork for further engagement.
Task 1A: Kick-off Meeting and Scope Finalization
Project initiation for the Car-Free Ramona Street Project will provide an opportunity for the CONSULTANTS to collaborate with the City in refining their recommended approach and scope of work. As part of this task, the CONSULTANTS shall specifically:
Debrief the City’s community engagement efforts to date, including what has worked well, what has not worked well.
Discuss to what extent they believe they can utilize the City’s ongoing parklet program design standards and Car-Free Cal Ave standards.
Identify Project Goals, desired outcomes, and key success factors for the project, incorporating feedback and comments from the key stakeholders and community. Discuss the anticipated implementation budget and timeline for Phase 1. Review and finalize their approach and scope of work, including project goals, deliverables, schedule, and the scope of community engagement events.
Deliverables:
Kick-off meeting agenda and minutes
Refined scope of work
Task 1B: Community Outreach
The Community Outreach events will aim to interact with the business and community stakeholders in a meaningful way. The UPP Team will facilitate up to one (1) hybrid meeting with the community in Phase 1. Key stakeholders encompass all businesses on Ramona between Hamilton and University, property owners and managers on Ramona and downtown, community partners such as Stanford University and the Palo Alto Historical Society, and the broader Palo Alto community. Potential meeting timelines and objectives include:
Project Introduction and Community Vision: Introduce the project, its scope, objectives and key success factors. Hear from the community on what is working well and what isn’t.
Receive input and ideas on the community’s vision for the street. Community feedback will be used to identify existing outdoor dining design aspects that will be maintained in the standards as well as place-making ideas and visions for the street. This initial feedback will help shape the initial direction for the outdoor dining and street design concepts. Outdoor Dining Design Concepts Feedback: present initial outdoor dining concepts and receive feedback on design elements, opportunities, and challenges with each concept, and identify preferred concepts. Provide an update on project status, anticipated implementation Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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timeline and next steps. Feedback from the community will help the CONSULTANTS refine the concepts.
Preferred Outdoor Dining Concepts, Implementation, and Initial Street Design Concepts: present refined outdoor dining concepts and initial streetscape concepts in response to community and stakeholder feedback. Provide an update on project status, detailed implementation timeline and next steps for the community. Receive feedback on select design elements and implementation process.
The CONSULTANTS shall provide materials and content for a website for the project.
Deliverables:
Meeting Agendas and Presentations (1 round review and revision) Task 1C: City Boards, Commissions, and Committee Meetings The CONSULTANTS shall prepare presentations and attend and present at up to two (2) City Committee and Council meetings in Phase 1. This includes the Retail Committee and the City Council. The project scope includes one (1) round of review and revision for each presentation.
An additional optional fee is included for Staff Report writing and assistance for one (1) meeting with up to two (2) rounds of review and revision.
Phase 1 Deliverables:
Up to two (2) Presentations: (1) to the Retail Committee (virtual) (1) to the City Council Optional: Up to one (1) Staff Report (2 rounds of review and revision) Summary Presentation - a PowerPoint slide deck that summarizes outdoor dining/patio issues and opportunities, including what heard from outreach, and presents the proposed Outdoor Dining/Patio Guidelines and Standards. Includes content from Task 1D
Task 1D: Stakeholder Engagement Summary
For Phase 1, the CONSULTANTS shall prepare an engagement summary table providing an overview of the outreach process and the stakeholder engagement events, the feedback received at each event, and how the City responded to stakeholder feedback and the changes that were made as a result. The table will be a living document and will be updated throughout the project after each engagement event to be used for web content and as an attachment to the final outdoor dining standards and street design.
Phase 1 Deliverables:
One (1) Stakeholder Engagement Summary Table that is updated following each engagement event (up to 2 rounds of review and revision) Task 1E: City Coordination Meetings
The scope includes up to 10 team coordination meetings with staff from Public Works, Planning and Development, Fire, Community Services and Transportation Departments occurring bi- weekly and up to 10 project manager check-in meetings occurring bi-weekly on alternating weeks as the team coordination meeting. The Project Manager shall attend all meetings with the Project Principal attending the team coordination meetings. Subconsultant team members will attend one (1) meeting as needed. The CONSULTANTS shall prepare and circulate meeting Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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agendas at least one day in advance, keep meeting notes, and track action items throughout the project.
Phase 1 Deliverables:
Up to ten (10) meeting agendas and notes
TASK 1, PHASE 2 (Tasks 1F-1J; requires a future contract amendment to authorize funding)
Phase 2 will focus on long-term solutions for Ramona Street, including gateway signage, streetscape design, and more comprehensive infrastructure, hardscape, and softscape strategies.
During this phase, up to two additional hybrid meetings will take place. These meetings will dive deeper into the project’s specifics, allowing for more detailed feedback from stakeholders to shape the final designs.
Task 1F: Kick-off Meeting and Scope Finalization
Project initiation for the Car-Free Ramona Street Project will provide an opportunity for the CONSULTANTS to collaborate with the City in refining their recommended approach and scope of work. As part of this task, the CONSULTANTS shall specifically:
Identify Project Goals, desired outcomes, and key success factors for the project, incorporating feedback and comments from City Boards, Commissions, and Committees on similar projects within the city.
Discuss the anticipated implementation budget and timeline. Review and finalize their approach and scope of work, including project goals, deliverables, schedule, and the scope of community engagement events.
Task 1G: Community Outreach
The Community Outreach events will aim to interact with the business and community stakeholders in a meaningful way. The UPP Team will facilitate up to two (2) hybrid meeting with the community in Phase 2. Key stakeholders encompass all businesses on Ramona between Hamilton and University, property owners and managers on Ramona and downtown, community partners such as Stanford University and the Palo Alto Historical Society, and the broader Palo Alto community. Potential meeting timelines and objectives include:
Project Introduction and Community Vision: Introduce the project, its scope, objectives and key success factors. Hear from the community on what is working well and what isn’t.
Receive input and ideas on the community’s vision for the street. Community feedback will be used to identify place-making ideas and visions for the street. This feedback will help shape the direction for the street design concepts
Street Design and Branding Concepts: present streetscape concepts in response to community and stakeholder feedback. Provide an update on project status, detailed implementation timeline and next steps for the community. Receive feedback on select design elements and implementation process.
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In addition to two (2) hybrid meetings, the CONSULTANTS shall prepare a survey to gather additional targeted input from the community on the outdoor dining concepts. The survey will utilize images and diagrams to maximize accessibility for the community.
The CONSULTANTS shall provide materials and content for a website for the project.
Deliverables:
Up to two (2) Meeting Agendas and Presentations (1 round review and revision) Online Survey (1 round of review and revision)
Survey Input Summary (memorandum format)
Task 1H: City Boards, Commissions, and Committee Meetings The CONSULTANTS shall prepare presentations and attend and present at up to six (6) City Boards, Commissions, and Committee meetings throughout the project. This includes one (1) meeting for each of the following: Architectural Review Board (ARB), Historic Review Board (HRB), Public Art Commission (PAC), Planning and Transportation Commission (PTC), and Pedestrian and Bicycle Advisory Committee, and the City Council. The project scope includes one (1) round of review and revision for each presentation. An additional optional fee is included for Staff Report writing and assistance for three (3) meetings with up to two (2) rounds of review and revision.
Phase 2 Deliverables:
Up to six (6) Presentations (1 round review and revision) Optional: Up to three (3) Staff Reports (2 rounds of review and revision) Task 1I: Stakeholder Engagement Summary
For Phase 2, the CONSULTANTS shall prepare an engagement summary table providing an overview of the outreach process and the stakeholder engagement events, the feedback received at each event, and how the City responded to stakeholder feedback and the changes that were made as a result. The table will be a living document and will be updated throughout the project after each engagement event to be used for web content, presentations at Stakeholder meetings such as PTC and CC, and as an attachment to the final outdoor dining standards and street design.
Phase 2 Deliverables:
One (1) Stakeholder Engagement Summary Table that is updated following each engagement event (up to 1 round of review and revision) Task 1J: City Coordination Meetings
The scope includes up to 30 team coordination meetings with staff from Public Works, Planning and Development, Fire, Community Services and Transportation Departments occurring bi- weekly and up to 30 project manager check-in meetings occurring bi-weekly on alternating weeks as the team coordination meeting. The Project Manager shall attend all meetings with the Project Principal attending the team coordination meetings. Subconsultant team members will attend one (1) meeting as needed. The CONSULTANTS shall prepare and circulate meeting agendas at least one day in advance, keep meeting notes, and track action items throughout the project.
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Phase 2 Deliverables:
Up to thirty (30) meeting agendas and notes
TASK 2. OUTDOOR DINING STANDARDS AND GUIDELINES
(Task 2 is only part of Phase 1)
Drawing from stakeholder outreach with community members and City BCCs, and leveraging lessons learned from our work on the Ongoing Parklet Program and Pre-approved parklets the CONSULTANTS shall develop Car-free Ramona Street Outdoor Dining Standards and Guidelines that will target the following goals:
Provide clear guidance and design expectations for applicants, staff and decision makers; Ensure the outdoor dining standards are compatible with the existing adjacent architecture, historic resources, and streetscape and ensuring compliance with the Department of the Interior Standards;
Use an open and inclusive process to develop the outdoor dining standards; and Ensure the outdoor dining standards do not impose an excessive cost to business owners, and instead facilitate the development of a thriving public realm on Ramona Street.
Task 2A: Existing Conditions Analysis and Historic Review To ensure that car-free Ramona Street outdoor dining and streetscape improvements align with its historic context and the Department of the Interior’s standards, the CONSULTANTS shall prepare a historic review of Ramona Street. The historic review will be a brief memorandum and include the following:
An overview of the Department of Interior Standards and how they apply to streetscape development, including requirements and limitations.
Identification and description of character-defining features of the street’s architecture and any significant materials and craftsmanship in buildings and the existing streetscape elements.
In addition to the historic review, the CONSULTANTS shall complete one (1) site visit and prepare an Existing Conditions overview including a visual analysis of the pedestrian and vehicular circulation, hard- and soft-scape zones, planting, and exiting outdoor dining (parklets and at-grade), as well as review and document existing outdoor dining standards that will remain in place such as emergency access and utility clearances. The overview will provide a summary of opportunities and constraints based on the visual analysis, existing standard review, and the Historic Review described above.
This analysis will inform both Task 2 and Task 3.
Phase 1 Deliverables:
One (1) Historic Review Memo (one round of review and revision) One (1) Existing Conditions Overview
Task 2B: Initial Outdoor Dining Concepts
The CONSULTANTS shall build upon the car-free Cal Ave stakeholder feedback and ongoing parklet program to prepare up to two (2) outdoor dining concepts to solicit feedback from Ramona Street stakeholders. The initial concepts will address site design topics such as Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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clearances from emergency access lane, fire access to buildings, clearances from utilities, water flow and drainage, and street cleanliness. In addition, the concepts will specifically present options and variations on site development and outdoor dining elements such as:
Size and location of dining areas, trash and service/host areas, and live entertainment Platform and enclosure types
Roof coverings options including umbrellas
The use and placement of heaters
Lighting
Materials and Furnishing
Planters
Advertising and signage
The concepts will include precedent images, sketches, and 3D sketch examples of what the outdoor dining standards would generate to solicit feedback from stakeholder groups.
Phase 1 Deliverables:
Up to two (2) outdoor dining concepts (2 rounds of review and revision) Task 2C: Final Outdoor Dining Standards and Guidelines
Following stakeholder feedback on the initial outdoor dining concepts, the CONSULTANTS shall refine one of the concepts and prepare and submit one (1) set of outdoor dining standards and guidelines, including site requirements, dining standards including for mandatory and optional elements. In addition, the CONSULTANTS shall prepare final cost estimates for the final concept implementation.
Phase 1 Deliverables:
One (1) final set of standards and guidelines (2 rounds of review and revision) Final cost estimates for implementation for one (1) concept TASK 3. STREET DESIGN AND WAYFINDING SIGNAGE
In coordination with Task 2, the CONSULTANTS shall prepare Street Design and Wayfinding Signage that will target the following goals:
Enhance street amenities, signage, and art location opportunities to create a cohesive environment that complements the historic Ramona Street. Develop a branding and placemaking strategy to create a unique and vibrant public realm and visitor experience.
Use stakeholder design and City partnership to produce a biddable set of construction documents that align with the project goals.
TASK 3, PHASE 1 (Tasks 3A-3B)
In a two phased approach, the CONSULTANTS shall prepare up to two (2) initial street design and wayfinding concepts. Phase 1 will be for an interim, semi-temporary strategy.
Task 3A: Initial Street Design and Wayfinding Concepts
Phase 1 will address the following topics:
Pedestrian and Cyclist Safety and Circulation
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Basic Wayfinding and Signage
The concepts will include precedent images, diagrams, and conceptual sketches to solicit feedback from stakeholder groups.
Phase 1 Deliverables:
Two (2) interim street design and wayfinding concepts (2 rounds of review and revision) One (1) Topographic Survey
Task 3B: Final Street Design and Wayfinding Construction Plans and Specifications
Following stakeholder feedback and priorities on the initial street design and wayfinding concepts, the CONSULTANTS shall refine one (1) of the concepts and prepare and submit construction plans and specifications. In addition, the CONSULTANTS shall prepare final cost estimates for the final concept implementation. The construction documents will be produced at a biddable level.
Phase 1 Deliverables:
One (1) set of street furniture construction drawings and specifications, and One (1) set of wayfinding signage specifications (2 rounds of review and revision):
1. Title Sheet
2. Construction Notes
3. Existing Conditions Plan – topography (no SUE or boundary survey)
4. Site Plan
5. Construction Details (civil)
6. Landscape Plan (streetscape)
7. Materials and Furniture Schedule
8. Planting Notes, Schedule, and Details Furnishing Details
9. Wayfinding/Signage Details
TASK 3, PHASE 2 (Tasks 3C-3E; requires a future contract amendment to authorize funding) Phase 2 will focus on developing more permanent solutions, including enhanced streetscape design, branding, greater design detailing, and infrastructure upgrades. Phase 2 will have a robust solicitation of feedback from stakeholders and determine streetscape improvement priorities.
Task 3C: Initial Street Design and Wayfinding Concepts
Phase 2 initial concepts will address the following topics:
Pedestrian and Cyclist Safety and Circulation
Street Furniture: Benches, Lighting, bollards, and Trash Receptacles Landscaping: Seasonal and Permanent
Street Art and Public Installations Locations
Sidewalk Pavement and Streetscape: Materials, Patterns, Colors Branded Wayfinding and Signage
The concepts will include precedent images, diagrams, and conceptual sketches to solicit feedback from stakeholder groups.
Phase 2 Deliverables:
Up to two (2) street design and wayfinding concepts (2 rounds of review and revision)
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Task 3D: Final Street Design and Wayfinding Construction Plans and Specifications
Following stakeholder feedback and priorities on the initial street design and wayfinding concepts, the CONSULTANTS shall refine one (1) of the concepts and prepare and submit construction plans and specifications. In addition, the CONSULTANTS shall prepare final cost estimates for the final concept implementation. The construction documents will be produced at a biddable level.
Phase 2 Deliverables:
One (1) set of street design and wayfinding construction drawings and specifications (2 rounds of review and revision):
1. Title Sheet
2. Construction Notes
3. Existing Conditions Plan – topography (no Subsurface Utility Engineering or boundary survey)
4. Demolition Plan
5. Site Plan
6. Improvement Plan (Grading & Utilities; no dry utility)
7. Stormwater Management Plan (if needed)
8. Erosion Control Plan
9. Construction Details (civil)
10. Sidewalk Paving and Materials Plan
11. Wayfinding/Signage Plan
12. Landscape Plan (streetscape)
13. Lighting Plan & Schedule
14. Materials Schedule
15. Paving Details (sidewalk)
16. Planting Notes, Schedule, and Details (tree pits and any pots/planters)
17. Furnishing Details
18. Wayfinding/Signage Details
Task 3E: Cost Estimates for Construction Document Implementation In addition, the CONSULTANTS shall prepare preliminary cost estimates for the two (2) concepts described in Task 3D and final cost estimates for implementation for one (1) street design and wayfinding concept.
Phase 2 Deliverables:
Preliminary cost estimates for the up to two (2) concepts Final cost estimates for implementation of the final street design and wayfinding construction plans and specifications
Task 3F: Style Guide and Branding
The CONSULTANTS shall prepare a Branding Strategy and Style Guide (guide) for wayfinding signage on Ramona. The Guide will be up to two-pages and will cover the following:
Design and Placement
Size Restrictions: Signage size is regulated to ensure it does not overwhelm the historic character of the buildings or the street.
Phase 2 Deliverables:
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Palo Alto Contract No.
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Up to two (2) branding strategy concepts for signage and wayfinding on Ramona Street (1 round of review and revision)
One (1) final branding strategy and Style Guide for wayfinding signage (2 rounds of review and revision)
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
Attachment A - City of
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of this
Task Order and warrant that I have authority to
sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Palo Alto Contract No.
C25192045
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified
below)
from NTP
1. Phase 1, Task 1: Stakeholder Engagement 16 weeks
2. Phase 1, Task 2: Outdoor Dining
Standards/Guidelines
16 weeks
3. Phase 1, Task 3: Interim/Limited Street
Design and Wayfinding
14 weeks
4. Phase 2, Task 1: Stakeholder Engagement 30 weeks
5. Phase 2, Task 3: Street Design and
Wayfinding Signage
33 weeks
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on- call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
Attachment A - City of
Palo Alto Contract No.
C25192045
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4) , within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE FOR PHASE 1
TASK NOT TO EXCEED AMOUNT
Tasks 1A-1E
(Stakeholder Engagement)
$37,637
Task 2
(Outdoor Dining Standards/Guidelines)
$74,364
Tasks 3A-3B
(Street Design and Wayfinding Signage)
$51,147
Sub-total for Services $163,148
Reimbursable Expenses (if any) $0
Total for Services and Reimbursable Expenses $163,148
Additional Services (if any, per Section 4) $2,425
Maximum Total Compensation $165,573
BUDGET SCHEDULE FOR OPTIONAL PHASE 2
Phase 2 requires an amendment to this Agreement to fund and authorize the Phase 2 scope of work.
TASK NOT TO EXCEED AMOUNT
Tasks 1F-1J
(Stakeholder Engagement)
$78,861
Task 2
(no Phase 2 work in Task 2)
$0
Task 3C-3F
(Street Design and Wayfinding Signage)
$146,127
Sub-total for Services $224,988
Reimbursable Expenses (if any) $1,500
Total for Services and Reimbursable Expenses $226,488
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Palo Alto Contract No.
C25192045
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Additional Services (if any, per Section 4) $7,275
Maximum Total Compensation $233,763
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Palo Alto Contract No.
C25192045
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Labor Category Year 1 Year 2
UPP
Principal $271 - $391 $271 - $391
Consulting Principal $300 - $400 $300 - $400
Associate Principal $175 - $292 $175 - $292
Principal Planner $186- $311 $186- $311
Senior Planner $181 - $277 $181 - $277
Associate Planner (P2) $171 - $202 $171 - $202
Associate Planner (P1) $136 - $177 $136 - $177
Planner (P2) $134 - $168 $134 - $168
Planner (P1) $104 - $139 $104 - $139
Assistant Planner $82 - $136 $82 - $136
Intern $80 - $109 $80 - $109
Graphics $132 - $223 $132 - $223
Admin/WP $125 - $211 $125 - $211
PGAdesign
Principal - Historic $270 - $280 $270 - $280
Principal Transportation $270 - $280 $270 - $280
Landscape Architect $182 - $192 $182 - $192
Landscape Designer $160 - $170 $160 - $170
Irrigation Designer $170 - $180 $170 - $180
BKF Engineers
Principal $302 - $312 $302 - $312
Project Manager $260 - $270 $260 - $270
Design Engineer $170 - $180 $170 - $180
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Palo Alto Contract No.
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL L IABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:
Docusign Envelope ID: CAD83FA7-B759-425D-9905-DB1EBAFCAB8E Item 15
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Certificate Of Completion
Envelope Id: CAD83FA7B759425D9905DB1EBAFCAB8E
Status: Completed
Subject: Complete with Docusign: FINAL C25192045 Car Free Ramona PSA.pdf Source Envelope:
Document Pages: 30
Signatures: 2
Envelope Originator:
Certificate Pages: 2
Initials: 0
Alice Harrison
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 71.204.184.225
Record Tracking
Status: Original
11/26/2024 10:19:33 AM
Holder: Alice Harrison
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
Storage Appliance Status: Connected
Pool: City of Palo Alto
Location: DocuSign
Signer Events
Signature
Timestamp
Lynette Dias
[email protected]
President
Urban Planning Partners
Security Level: Email, Account Authentication
(None)
Signature Adoption: Uploaded Signature Image
Using IP Address: 76.21.7.66
Sent: 11/26/2024 10:22:16 AM
Viewed: 11/26/2024 10:57:30 AM
Signed: 11/26/2024 10:58:04 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Carla Violet
[email protected]
Associate Principal
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 104.28.124.182
Signed using mobile
Sent: 11/26/2024 10:58:06 AM
Viewed: 11/26/2024 11:07:06 AM
Signed: 11/26/2024 11:07:32 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events
Signature
Timestamp
Editor Delivery Events
Status
Timestamp
Agent Delivery Events
Status
Timestamp
Intermediary Delivery Events
Status
Timestamp
Certified Delivery Events
Status
Timestamp
Carbon Copy Events
Status
Timestamp
Ashwini Kantak
[email protected]
Management Spec
Copa
Security Level: Email, Account Authentication
(None)
Sent: 11/26/2024 11:07:34 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Item 15
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Carbon Copy Events
Status
Timestamp
steve guagliardo
[email protected]
Assistant to the City Manager
Security Level: Email, Account Authentication
(None)
Sent: 11/26/2024 11:07:35 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ruth carias
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 11/26/2024 11:07:36 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events
Signature
Timestamp
Notary Events
Signature
Timestamp
Envelope Summary Events
Status
Timestamps
Envelope Sent
Hashed/Encrypted
11/26/2024 10:22:16 AM
Certified Delivered
Security Checked
11/26/2024 11:07:06 AM
Signing Complete
Security Checked
11/26/2024 11:07:32 AM
Completed
Security Checked
11/26/2024 11:07:36 AM
Payment Events
Status
Timestamps
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Resolution No. ___
Resolution of the Council of the City of Palo Alto Extending the City Manager’s Authority to Temporary Close a Portion of Ramona Street Pursuant to California Vehicle Code Section 21101 to Facilitate Outdoor Dining, Retail, and Other Uses
R E C I T A L S
A. On June 23, 2020, the Council adopted Resolution No. 9909 approving the temporary closure of portions of California Avenue , University Avenue and certain other Downtown streets through Labor Day 2020 to allow for outdoor dining and retail on those streets, consistent with the Santa Clara County Public Health Order in effect. The street closures were part of a Summer Streets Program initiated by the City to accommodate outdoor uses at a time when indoor dining remained prohibited in the County and the growing scientific evidence showed a lower risk of COVID-19 transmission outdoors compared to indoors. At that time, the City a nticipated that indoor dining would be allowed to resume in the County, as had been allowed in neighboring counties, and sought to address the immediate needs of the community including residents, workers and businesses that had been severely impacted by loss of business activity and revenue.
B. Through Resolution No. 9909 the Council also approved a temporary pilot parklet program to allow parklets to be installed in on -street parking spaces on an expedited and temporary basis to provide more space for outdoor dining.
C. On July 2, 2020, the County Public Health Officer issued a revised Shelter in Place Order, to become effective on July 13, 2020, that allowed certain additional activities to resume if specified strict across-the-board risk reduction measures were followed. The objective was to allow activities that were already allowed in surrounding jurisdictions, which had reopened more quickly than Santa Clara County, so long as the prescribed risk reduction measures were followed.
D. On July 7, 2020, the State approved Santa Clara County’s requested variance that allowed the revised Shelter in Place Order to go into effect on July 13, 2020.
E. However, with the number of COVID-19 cases dramatically increasing again in the State, on July 13, 2020, the Governor announced a sweeping roll back of the reopening that the State had allowed . The State mandated that all counties close certain indoor operations, including in-restaurant dining. For counties on the State’s monitoring list for 3 consecutive days (and thus placed on the State “watchlist”), the State required the closure of additional industries or activities unless they could be modified to operate outside or by pick-up; these included gyms and fitness centers, places of worship and cultural ceremonies, personal care services, hair salons and barbershops, and shopping malls.
Item 15
Attachment B -
Resolution Extending City
Manager’s Authority to
Temporary Close a
Portion of Ramona Street
through 2025
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F. Through the summer, the United States including “hot spots” like California continued to hit new highs in confirmed cases and deaths, as the loosening of shelter -in-place restrictions had precipitated a resurgence of the virus in many states, including California. As of July 27, 2020, the State was averaging nearly 10,000 new COVID-19 cases per day, and hospitals and their intensive care units were filling up. Thirty -seven counties representing 93% of the State’s population were on the State’s watchlist , and California had 460,550 confirmed cases of COVID-19, resulting in 8,445 deaths.
G. On August 10, 2020, the Council adopted Resolution No. 9911, which amended Resolution 9909, to extend until December 31, 2020 the temporary closure of portions of California Avenue and University Avenue and certain intersecting streets to allow for continued use of these areas in the heart of the City’s commercial districts to allow for outdoor dining and potentially other activities as may be allowed by State and County P ublic Health Orders.
Resolution No. 9911 also extended the temporary parklet program to September 7, 2021.
H. Since August 2020, the County Public Health Officer issued a Risk Reduction Order on October 5, 2020, which coincided with the County moving into the orange tier under the State’s “Blueprint for a Safer Economy” tiered restriction system.
I. However, on November 16, 2020, the State moved Santa Clara County two steps from the orange/moderate tier to the purple/widespread tier (the highest risk tier) due to a sharp increase in COVID-19 cases statewide. On that date, the County reported 388 new cases of COVID-19, bringing the cumulative total to 28,686. As of November 17, 2020, California reported 1,029,235 confirmed cases of COVID -19, resulting in 1 8,263 deaths , and 94.1% of the State’s population was now in the purple tier (according to the Governor’s Office). The State’s rules for the purple/widespread tier mandate that restaurants and gyms cannot have indoor service and retail stores may only have 25% capacity indoors.
J. On December 14, 2020, the Council adopted Resolution 9933, which amended Resolution 9099, to extend until May 31, 2021 the temporary closure of portions of California Avenue and University Avenue and certain intersecting streets to allow for continued use of these areas in the heart of the City’s commercial districts to allow for outdoor dinin g and potentially other activities as may be allowed by State and County Public Health Orders.
K. On March 3, 2021, the State moved Santa Clara County one step down from the purple/widespread tier to the red/substantial tier. As of March 16, 2021, the County reported a cumulative total of 112,909 COVID cases and 1,867 deaths.
L. On May 10, 2021, the Council adopted Resolution 9954, which further amended Resolution 9099 to extend until October 31, 2021 the temporary closure of portions of California Avenue and University Avenue and certain intersecting streets to allow for continued use of these areas in the heart of the City’s commercial districts to allow for outdoor dining and potentially other activities as may be allowed by State and County Public Health Orders.
Item 15
Attachment B -
Resolution Extending City
Manager’s Authority to
Temporary Close a
Portion of Ramona Street
through 2025
Item 15: Staff Report
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123_20241204_ts24 3
M. On June 7, 2021, the Council adopted Resolution 9962. Resolution 9962 amended and restated Section 4 of Resolution 9909 regarding the pilot parklet program on a non - emergency basis.
N. On June 15, 2021, the State of California eliminated the Blueprint for a Safer Economy system of COVID -related rules and restrictions ( also known as the color -tier system) amidst improvements in public health data and increasing availability of the COVID vaccine. The City of Palo Alto rescinded its declaration of local emergency on July 1, 2021.
O. On September 13, 2021 the Council voted to extend the street closures of portions of California Avenue and Ramona Street through June 30, 2022 to allow for the continued use of these streets for outdoor dining and other activities as may be allowed . The Council voted on each street separately and Resolution 9988 extended the closure of Ramona Street only; a separate resolution (no. 9987) extended the closure of California Avenue. At the same meeting, the Council directed the City Manager to open the portion of University Avenue which was closed by Resolution 9909 and its successors on October 15, 2021.
P. On May 16, 2022, the City Council adopted Resolution 10039, which amended and restated Resolution 9988 to continue its provisions until December 31, 2023.
Q. On November 6, 2023, the City Council adopted Resolution 10130, which amended and restated Resolution 10039 to continue its provisions until December 31, 2024.
R. The City Council now desires to continue the provisions of Resolution 10130 until December 31, 2025.
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. Findings and Declarations. The Council hereby adopts the above Recitals as findings of the Council.
SECTION 2. Supersedes Resolution 10130. This Resolution shall supersede Resolution 10130, which is rescinded as of the effective date of this Resolution.
SECTION 3. Extension of Temporary Street Closure
A. The following street is hereby closed to any and all vehicular traffic through December 31, 202 5, in accordance with California Vehicle Code Section 21101(e), to facilitate the temporary uses of outdoor dining , retail, and other permitted uses:
1. Ramona Street from University Avenue to Hamilton Avenue.
Item 15
Attachment B -
Resolution Extending City
Manager’s Authority to
Temporary Close a
Portion of Ramona Street
through 2025
Item 15: Staff Report
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B. The City Manager is authorized to determine the days, hours and duration of the temporary street closure(s) within the period specified in Section A, with reasonable notice provided, and whether exceptions to the closure shall be made for municipal purposes. The City Manager is also authorized to close only part of the street authorized for closure in Section A.
SECTION 4. The Council finds that this Resolution is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment).
SECTION 5. This Resolution shall become effective immediately upon adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________ Assistant City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Chief Transportation Official
_____________________________
Director of Planning and Development
Services
Item 15
Attachment B -
Resolution Extending City
Manager’s Authority to
Temporary Close a
Portion of Ramona Street
through 2025
Item 15: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: December 16, 2024
Report #:2408-3377
TITLE
Approval of Contract C24191871 Amendment Number 1 Effective July 1, 2024 with Equinix, LLC in the Amount of $1,246,793 to Extend the Term for an Additional 2 Years Through June 30, 2029 for Fiber Licensing Agreement (Attachment A); and Authorization to Increase Contingency Amount by $75,000 for a Total Not to Exceed Amount of $1,954,923; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that City Council:
1. Approve and authorize the City Manager or their designee to execute amendment number 1 to contract C24191871 effective July 1, 2024 with Equinix, LLC to extend the lease of fiber optic access and termination services at the Palo Alto Internet Exchange (PAIX) for an additional two years through June 2029 for a total not-to-exceed amount of $1,246,793, broken down as follows:
a. $396,135 to lease a fiber optic cage to support Fiber-to-the-Premises for an additional two years from July 1, 2027 through June 30, 2029; b. $850,658 to lease a fiber optic cage to support the City’s dark fiber licensing program for five years from July 1, 2024 through June 30, 2029; and
2. Authorize the City Manager or their designee to approve and execute any amendments to the agreement for additional services that may develop during the license period for a total not-to-exceed amount of $181,900 for FTTP ($109,900) and the City’s dark fiber licensing program ($75,000).
BACKGROUND
The City of Palo Alto established a Fiber Optic Utility in 1996 following the design and construction of a dark fiber optic backbone system throughout the city. Operated by the City of Palo Alto Utilities Department (CPAU), the Fiber Optic Utility licenses backbone connections to local businesses and telecommunications resellers requiring access to advanced broadband telecommunications service.
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There is a highly competitive Palo Alto commercial fiber optic marketplace served by multiple telecommunication companies and Internet Service Providers (ISPs). Many of these entities control independently owned overhead and/or underground fiber optic systems. These systems are also accessed by third-party ISP-service resellers using leased capacity on the fiber optic networks.
Those CPAU fiber optic licensees wishing access to the internet outside of Palo Alto must have their CPAU fiber optic service connected to the data center (SV8) currently owned by Equinix LLC and located in Palo Alto. This neutral data center, designated as Equinix SV8, is independent of any one ISP or telecommunications carrier affiliation, and serves as an internet exchange point (IXP) providing the physical infrastructure through which over 70 ISPs and content delivery networks (CDNs) exchange internet traffic between their networks. Originally constructed by the Digital Equipment Corporation in 1996 as one of the first IXPs in the world, it was (and still locally) called the “Palo Alto Internet eXchange (PAIX).” The City has been leasing fiber optic access and termination services at PAIX since the inception of the fiber network.
For CPAU dark fiber optic licensees to access the telecommunications services provided by commercial fiber optic vendors or ISPs of their choice, the licensee, or their third-party provider, must install privately-owned electronic equipment to “light” their leased dark fiber optic cable for on-site data use, building-to-building (campus) communications, or to access internet service outside of Palo Alto.
The City Council provided direction to staff to proceed with Phase 1 of the fiber to the premises (FTTP) expansion project on December 19, 2022 (Staff Report 148001). In Phase 1, FTTP would be built out in selected areas of the city and expand gradually. On November 7, 2023 , staff presented an update on plans related to advancing a FTTP pilot program and construction alignment with Electric Grid Modernization to the Council’s Finance Committee. Upgrading overhead lines in 90% of Palo Alto neighborhoods through electric grid modernization and piloting the build out of Palo Alto Fiber to the home supports a reliable, sustainable and connected community.
ANALYSIS
Equinix provides fiber leasing and telecom cages that support the City’s dark fiber optic licensing program and the Fiber-to-the-Premises (FTTP) project. Previously, the City had two separate contracts with Equinix for each program. The original lease agreement for dark fiber licensing was established in 1996 when the City built the dark fiber backbone. On November 27, 2023, Council approved a new license agreement with Equinix to secure a dedicated space for the infrastructure required to operate FTTP (Staff Report 2310-21292). This Amendment extends the FTTP project contract by an additional 2 years, making it a total of 5 years, and consolidates the separate dark fiber lease program under a single contract with the same term. 1 Staff Report 14800 https://portal.laserfiche.com/Portal/DocView.aspx?id=59132&repo=r-704298fc 2 Staff Report 2310-2129 https://portal.laserfiche.com/Portal/DocView.aspx?id=69113&repo=r-704298fc Item 16
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For the dark fiber licensing program, the City leases four “cabinets” (vertical racks sited next to each other, each capable of holding multiple termination/switching boxes in stacked configurations). The Equinix fiber licensing agreement includes contingency funds of $75,000 for potential Service Orders that might be required for expanded CPAU fiber optic ductwork (“innerducts”) and cable configuration changes within PAIX during the term of the contract.
This contract will also fund the lease cost for one additional cabinet which will increase CPAU’s fiber optic termination and switching capacity within PAIX by 20 percent. This additional capacity will provide sufficient PAIX resources for all projected CPAU customer growth scenarios within the term of the proposed contract.
For FTTP, a data center is required to provide internet services. Equinix is the best option to serve as the Data Center and is designated as one of two fiber huts or aggregation point which can serve up to 15,000 customers. A private cage will provide a secure space for the infrastructure required to operate the fiber and internet service provider (ISP) for FTTP. In addition, staff recommends contingency funding of $109,900 for additional services such as additional power, cross connects to peer with other ISP’s and fiber cables. This capacity is recommended to ensure flexibility as the City begins Phase 1 of the FTTP build out and any unforeseen issues in this new line of service.
Benefits of a private cage with racks vs racks in an open or shared share:
•Scalability - Dedicated space to support the infrastructure for FTTP and new backbone. •Privacy/Security – Only people that are approved by the City will be allowed access. •Reliability – Reduced likelihood of damage to infrastructure by third parties. •Efficiency – Full control of cross connects and cable management between racks.
This agreement is exempt from the City’s solicitation requirements under the “sole source” exception in PAMC Section 2.30.360 (d): Because of its geographical location, PAIX is the only economically and physically viable co-location internet facility or data center available to CPAU and its fiber optic licensees. The nearest alternative IXP data center site is in the City of Santa Clara. Connection to the Santa Clara site from Palo Alto would require miles of multiple underground conduits through several municipal jurisdictions. Such construction would be prohibitively expensive, be significantly less secure than the current Palo Alto location (greater risk due to construction and contractor dig-ins in other jurisdictions, requiring Palo Alto to contract with remotely-sited, third-party repair fiber repair companies), and limit fiber optic utility connectivity to customer sites back in Palo Alto.
FISCAL/RESOURCE IMPACT
Funding for revision number 1 of this agreement is included in the FY 2025 Adopted Fiber Optic Fund budget. Subsequent years are subject to the annual budget process and appropriation of funds. If the pilot is successful and the FTTP project continues, this will become an ongoing cost with funding in subsequent years subject to Council’s approval of each fiscal year’s budget appropriation.
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STAKEHOLDER ENGAGEMENT
This has been coordinated with internal stakeholders including Information Technology and Utilities, and in consultation with Magellan/Entrust, the City’s professional services partner in the development of the FTTP project. Through the Utilities Advisory Commission (UAC) and Council, the community has had the opportunity to hear updates on the status of the FTTP project and provide feedback on the project. The next update on the FTTP project is scheduled with the UAC on January 8, 2025 and is expected to discuss product offering, marketing strategy, and project timeline.
ENVIRONMENTAL REVIEW
Approval of this agreement does not meet the definition of a project under the California Environmental Quality Act (CEQA) regulations section 15378 because it is not an activity that will cause a direct physical change in the environment and is a continuing maintenance activity for the FTTP and dark fiber projects.
ATTACHMENTS
Attachment A: Amended Order with Equinix, LLC
APPROVED BY:
Dean Batchelor, Director of Utilities
Darren Numoto, Director of Information Technology;
Staff: Dave Yuan, Strategic Business Manager
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Account Name : CITY OF PALO ALTO
Account Number : 110002 Currency : USD PREPARED BY: PREPARED FOR:
Order Number : 1-240725154517 Order Valid Until : 13-Feb-2025 Reza Fazlollahi Anthony Enerio Version # : 5 [email protected] [email protected] g
Agreement # : 00036759.0 Initial Term (Months) : 60
Renewal Period (Months) : 12
Non-renewal notice (Days) : 90
IBX: SV8
Address: 529 Bryant Street, Palo Alto, CA, 94301, United States Section C: Product/Element Changes
Qty UoM Action Serial # Total Charges
NRC
Current Price
MRC
Amended Price
MRC Effective DateProduct Code Product Description
SPC00005 Secure Cabinet With Circuit Based Power 1 Each Update 1_1514349 0.00 7,152.16 7,152.16 01-Jan-2025 CAG00001 Cage - 5 Cabinets - 1 kVA - PEC Cap- 11.52 PEC 11.52 PEC Update 8B055-10678681 - 0.00 0.00 01-Jan-2025 SPC00002 Private Cage With kVA Based Power 1 Each Update 4-230473911175 0.00 13,248.00 13,910.40 01-Jan-2025 POW00001 AC Power 14.4 kVA Update 4-230473911189 - 6,624.00 6,955.20 01-Jan-2025 CAG00001 Cage - 6 Cabinets - 14.4 kVA - Liquid Cooling - No 14.4 kVA Update 082025-22661481 - 6,624.00 6,955.20 01-Jan-2025 ECX00001 Equinix Fabric Metro Port 1 Each Update 4-194785470989 0.00 115.76 121.55 01-Jan-2025 CC00001 Cross Connect 1 Each Update 4-205898365286 0.00 425.43 425.43 01-Jan-2025 ECX00015 Equinix Fabric Virtual Connection Product 1 Each Update 22252695 0.00 231.53 243.11 01-Jan-2025 ECX00015 Equinix Fabric Virtual Connection - SV - SV - 1 Gbps - AWS Direct Connect - High Capacity 1 Each Update 4-195545328567 - 231.53 243.11 01-Jan-2025 Section Total 0.00 21,172.88 21,852.64
IBX: SV8
Address: 529 Bryant Street, Palo Alto, CA, 94301, United States Section D: Continuing Services
Qty UoM Serial #
Unit Pricing Total Charges
Effective DateProduct Code Product Description NRC MRC NRC MRC EXT00006 Innerduct 1 Each 22903912 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167789 - - - - 01-Jan-2025 EXT00006 Innerduct 1 Each 22903918 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167806 - - - - 01-Jan-2025 CC00001 Cross Connect 1 Each 1_1531336843 - - 0.00 0.00 01-Jan-2025 CC00001 Network Cable Connection - Single-Mode Fiber - Z-side IBX- SV8 1 Each M13324101 - - - 0.00 01-Jan-2025
CC00001 Cross Connect 1 Each 1_1531345602 - - 0.00 0.00 01-Jan-2025 CC00001 Network Cable Connection - Single-Mode Fiber - Z-side IBX- SV8 1 Each M14057067 - - - 0.00 01-Jan-2025
EXT00006 Innerduct 1 Each 22903895 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167805 - - - - 01-Jan-2025 i-+);1Lk
EQUINIX ORDER
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Attachment A - Amended Order with
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IBX: SV8
Address: 529 Bryant Street, Palo Alto, CA, 94301, United States Section D: Continuing Services
Qty UoM Serial #
Unit Pricing Total Charges
Effective DateProduct Code Product Description NRC MRC NRC MRC EXT00006 Innerduct 1 Each 14689530. - - 0.00 1,628.91 01-Jan-2025 EXT00002 Innerduct Element 1 Each 14689530 - - - 0.00 01-Jan-2025 EXT00006 Innerduct 1 Each 14689531. - - 0.00 1,628.91 01-Jan-2025 EXT00002 Innerduct Element 1 Each 14689531 - - - 0.00 01-Jan-2025 EXT00006 Innerduct 1 Each 22903921 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167708 - - - - 01-Jan-2025 EXT00006 Innerduct 1 Each 22903886 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167705 - - - - 01-Jan-2025 EXT00006 Innerduct 1 Each 22903925 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167728 - - - - 01-Jan-2025 EXT00006 Innerduct 1 Each 22903931 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167742 - - - - 01-Jan-2025 EXT00006 Innerduct 1 Each 14689529. - - 0.00 1,628.91 01-Jan-2025 EXT00002 Innerduct Element 1 Each 14689529 - - - 0.00 01-Jan-2025 EXT00006 Innerduct 1 Each 22903916 - - 0.00 0.00 01-Jan-2025 EXT00002 Innerduct Element 1 Each 167787 - - - - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 1_1511117304 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0705:122350 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0705:112870 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0705:112869 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 4-206690746756 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0708:1252596 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 1_1511117303 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0704:122349 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0704:137356 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 4-206690809836 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0708:1252595 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 4-206689457686 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0708:1252597 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 1_1511117305 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0707:112871 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0707:110503 - - 0.00 - 01-Jan-2025 i-+);1Lk
EQUINIX ORDER
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Attachment A - Amended Order with
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IBX: SV8
Address: 529 Bryant Street, Palo Alto, CA, 94301, United States Section D: Continuing Services
Qty UoM Serial #
Unit Pricing Total Charges
Effective DateProduct Code Product Description NRC MRC NRC MRC CC00001 Patch Panel 1 Each CP:0707:122351 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 1_1511117306 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each PP:0708:191979 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each PP:0708:191978 - - 0.00 - 01-Jan-2025 CC00001 Patch Panel 1 Each PP:0708:191155 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 4-206688776746 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0708:1252594 - - 0.00 - 01-Jan-2025 PS00004 Configurable Accessories 1 Each 4-206690490516 - - 0.00 0.00 01-Jan-2025 CC00001 Patch Panel 1 Each CP:0708:1252593 - - 0.00 - 01-Jan-2025 Section Total - 4,886.73
Section Total NRC MRC
Section C: Product/Element Changes 0.00 21,852.64
Section D: Continuing Services 0.00 4,886.73
Grand Total
Monthly recurring charge: $26,739.37
Non-recurring charge: $0.00
TERMS AND CONDITIONS
1. INTRODUCTION
This Replacement Order is governed by and incorporated by reference into the applicable Master Country Agreement or other similar agreement between the Parties (ªAgreementº).
Capitalized terms used but not defined in this Replacement Order shall have the meaning ascribed to them in the Agreement or shall refer to the values listed at the top of this Order.
This order is intended to amend a previous version of Agreement 00036759.0. As of the effective date of this order, Agreement 00036759.0, Order Number 1-22894272368 Version 4 is hereby terminated and replaced with this Order.
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This Replacement Order replaces and supersedes the Order(s) referenced below (including any Online or Phone Orders related to or incorporated by reference into such Order(s)) and will, as applicable, add those new Products detailed in Section A, terminate the Products detailed in Section B and amend the Products detailed in Section C as further detailed above from the Effective Date stated in the relevant Section.
Unless otherwise stated by this Replacement Order, the Products in the Order(s) detailed in Section D remain(s) unchanged.
2. DEFINITIONS
`Effective Date' as used in this Order shall be:
- For Section A: Product Additions, the date stated above on which the addition to the Licensed Space and Services takes effect or, if no such date is stated above, then the date the Licensed Space is provided or the Services are delivered;
- For Section B: Product Deletions, the date stated above on which the termination of the Licensed Space and Services takes effect; - For Section C: Product Changes, the date stated above on which the change to the Licensed Space and Services takes effect; or, if no such date is stated above, then the date the Licensed Space is provided or the Services are delivered of this Replacement Order. `Products' as used in this Order may also be referred to as Licensed Space and Services.
PRODUCT TERMS
Additional terms and conditions applicable to the Products listed above can be found at the following URL: http://www.equinix.com/resources/product-documents and are incorporated by reference into this Order.
3. INITIAL TERM & RENEWAL PERIOD
The Initial Term will commence on the Effective Date and will remain in effect for the Initial Term.
4. POWER LIMITATIONS
The maximum amount of electrical power that Customer may draw is stated above as Draw Cap or Qty/UoM in kVA or kW ("Draw Cap"). Customer may not draw more power than the Draw Cap. If Customer exceeds the Draw Cap, Equinix will notify Customer and Customer must reduce power draw to be equal to or less than the Draw Cap within 72 hours (or as otherwise agreed) or Equinix may, in its sole discretion, either charge Customer for the power overage at a maximum of twice the MRC/kVA rate for Licensed Space and power Services above, or suspend Customer©s power Services to return to Draw Cap compliance.
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5. PRICE AND PRICE INCREASE
Customer will pay the Fees for the Licensed Space and Services from the Effective Date.
Notwithstanding anything in this Order to the contrary, all Fees for those Products in the Price Increase Terms may be subject to the Price Increase with effect from the date stated in the Price Increase Terms and every twelve (12) months thereafter, except where a change in Equinix's direct electrical supply costs exceeds the Price Increase value listed below then Equinix may change the Fees for power Services by such increased cost.
Price Increase Terms
First Price Increase Applicable After 12 months
All Products Price Increase % 5%
Renewal Price Increase Terms
All Products Price Increase % 5%
Equinix reserves its right to delay any Effective Date for the Licensed Space and Services under this Order unless Equinix receives a signed copy of this Order before the Effective Date stated above.
Order Reference Updates
IBX Product Family Order Reference # New Order Reference # SV8 Space & Power 1-217364579733,1-228942723689 1-240725154517 SV8 Interconnection 1-217364579733 1-240725154517
SV8 Services 1-240725154517
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CITY OF PALO ALTO Equinix LLC, on behalf of itself and its U.S. Affiliates Signature:
Name:
Title:
Date:
Billing Contact Name:
Accounts Payable
Billing Address:
PO BOX 10250
PALO ALTO CA United States
94303-0862
Phone Number: 6503292494
Email Address: [email protected]
Equinix Local Entity Address:
One Lagoon Drive, 4th Floor
Redwood City CA
United States
94065
Signature:
Name: Alex Para
Title: Commercial Finance Senior Director
Date: 25-Nov-2024
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City Council
Staff Report
From: City Attorney
Report Type: CONSENT CALENDAR
Lead Department: City Attorney
Meeting Date: December 16, 2024
Report #:2411-3837
TITLE
Approval of Purchase Order C24193066 with Origami Risk LLC for Records Management Software Supporting the City’s Claims and Litigation for a Three-Year Term Not-To-Exceed Amount of $206,310; CEQA: Not a project
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee to execute Purchase Order C24193066 with Origami Risk LLC to procure Origami Risk software through December 16, 2027, in an amount Not-To-Exceed $206,310.
BACKGROUND
The City Attorney's Office is responsible for processing and investigating all claims and handling litigation brought against or by the City. Since 1973, the City Attorney’s Office has utilized CYCOM Data Systems Inc.’s Claims and Litigation module (“Citylaw”) to manage documents, calendars, and other records relating to claims and litigation matters. Reliable and efficient information management is critical for processing and reporting relating to claims and litigation matters. CYCOM has an annual maintenance fee of $5,116 but the system is antiquated and has become unreliable and inefficient due to frequent crashing and errors. A new state-of-the-art claims management system (CMS) is critically needed to maintain the integrity of essential records, and will increase efficiency by allowing us to streamline processes, run detailed reports, improve accuracy, and facilitate annual audits.
ANALYSIS
On review of industry offerings, staff determined that software from Origami Risk, LLC meets office needs and provides best value. After assessing the Office's needs through interviews of key personnel, the City Attorney’s Office conferred with surrounding jurisdictions, researched the market and various systems online, and received demonstrations of system capabilities from several potential vendors. Origami Risk LLC is a privately held company led and wholly owned by an experienced management team. Founded in 2009, Origami Risk provides records management software that serves as an alternative to the legacy technology used by other Item 17
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suppliers. Origami Risk connects data, automates workflows, provides access to analytics and insights, and improves collaboration and communication. With over 190 government contracts, Origami provides a full-featured CMS platform for most major coverages, including but not limited to General Liability, Property, Auto, Auto Physical Damage, etc., providing comprehensive functionality including claims management as well as incident intake, letter merge, and reporting.
In 2016, the County of San Mateo entered into contract no. 17000-16-R074356 with Origami Risk for their claims management. In accordance with PAMC section 2.30.360(k), the City may use “another governmental or public agency's contract or substantially the same contract terms provided: (i) the agency uses a solicitation method substantially similar to the method required by this chapter; (ii) the contract is consistent with the requirements specified in this municipal code; and (iii) the Procurement Officer determines that the city will realize overall value to utilizing the other agency's contract or contract terms compared to the city performing its own solicitation.” Procurement staff has determined that the procurement of this software is exempt from the City’s competitive solicitation requirements as the County of San Mateo’s contract with Origami Risk meets the criteria under this section.
FISCAL/RESOURCE IMPACT
The Fiscal Year 2025 Operating Budget includes one-time funding of $100,000 for software acquisition and an initial estimate of $35,000 for recurring annual costs. Actual annual recurring costs will be $53,155 yearly. The Fiscal Year 2026 Operating Budget will include an adjustment to align with this cost.
STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the service provider.
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment.
ATTACHMENTS
Attachment A: Origami Agreement C24193066
APPROVED BY:
Molly Stump, City Attorney
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ORIGAMI RISK ORDER FORM #20245000 (C24193066)
CONTACT INFORMATION
Client: City of Palo Alto Bill To Contact:
Address: 250 Hamilton Ave.
Palo Alto, California 94301
Bill To Email:
Primary Contact: Tricia Runyan Is purchase order (PO) required? ☐ Primary Contact Email:
[email protected]
Upon entering into this Order Form, please send any Pos, vendor registration links or tax exemption certificates to [email protected]
SUBSCRIPTION DETAILS
Subscription Term: 36 Months
Effective Date: The last day of signature by the parties hereto
RECURRING SUBSCRIPTIONS – LICENSES
Subscription Quantity / Functionality Purchased
RMIS Functionality Selected
Full User(s) 4 User(s)
Claims Admin User(s) 2 Claims Admin User(s)
Annual Total: $31,280.00
RECURRING SUBSCRIPTIONS – HOSTING
Subscription Quantity / Functionality Purchased
Hosting, Network & Storage Up to 1 GBs of Database Size Non-Searchable File Attachment Storage Includes 100 GBs of Non-Searchable file storage Annual Total: $8,625.00
RECURRING SUBSCRIPTIONS – DATA PROCESSING
Subscription Quantity / Functionality Purchased
Open Cities / Open Forms Import Integration Selected
Annual Total: $5,750.00
RECURRING SUBSCRIPTIONS – Client Support
Subscription Quantity / Functionality Purchased
Client Support Tier
Selected Client Support tier includes support
resourcing based on up to 2 hours of Client Support
services per month beginning on the Effective Date.
Annual Total: $7,500.00
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Attachment A - Origami
Agreement C24193066
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Total Annual Fees: $53,155.00
BILLING DETAILS AND ADDITIONAL TERMS
This Order Form is effective as of the Effective Date (as identified above) for the purchase of the subscription services listed above from Origami Risk LLC (“Origami”).
Origami entered into a contract with the County of San Mateo, a political subdivision of the State of California (“San Mateo”) to provide and implement a risk management information system, dated February 9, 2016 (“San Mateo Contract” or “Agreement”). Origami and Client wish to enter into this Order Form for Origami to provide Client the licenses and services as set forth herein on the same terms and conditions as the San Mateo Contract, subject to the following modifications:
1. Any reference to San Mateo in the San Mateo Contract shall instead be deemed to refer to Client for the purposes of this Order Form. To the extent that this Order Form conflicts with any provision of the San Mateo Contract, the provisions of this Order Form shall govern.
2. To the extent the San Mateo Contract does not contemplate order forms, this Order Form will be deemed a Statement of Work for purposes of the San Mateo Contract.
3. The parties agree that this Order Form will apply to the services provided to the Client and the Statement of Work and Exhibit B “Pricing and Invoicing Schedule” of the San Mateo Contract shall be replaced in their entirety by this Order Form and the related implementation services of Statement of Work #20245000. For clarity, the Service Level Agreement shall continue to govern this Order Form.
4. The Term of the San Mateo Contract shall be extended through the duration of the term of this Order Form.
5. Upon mutual agreement in writing by both the Client and Origami, this Order Form may be extended or renewed (subject to further negotiation as required) after the initial three-year term set forth herein.
Fees for the first year of recurring subscription fees and all one-time fees under this Order Form will be invoiced and due in accordance with the San Mateo Contract. Fees for ongoing contract years will be invoiced before or around each anniversary date with payment due in accordance with the San Mateo Contract. All fees are subject to applicable sales tax, which will appear separately on each invoice. All travel costs and expenses will be pre-approved by Client in writing and billed to Client as incurred.
Service descriptions and service-specific terms and conditions are set forth at origamirisk.com/servicedescriptions, which are hereby incorporated by reference in the form available at such link as of the Effective Date. Additional professional services may be set forth in other Statements of Work as agreed between the parties.
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Attachment A - Origami
Agreement C24193066
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ORDER FORM APPROVAL
The undersigned agree to this Order Form.
ORIGAMI RISK LLC CITY OF PALO ALTO
By: __________________________________ By: __________________________________
Name: _______________________________ Name: _______________________________ (Print Name) (Print Name)
Title: ________________________________
Date: ________________________________
Title: _________________________________
Date: ________________________________
APPROVED AS TO FORM:
__________________________
City Attorney or designee
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STATEMENT OF WORK #20245000
This Statement of Work (“SOW”) describes services to be performed by Origami Risk LLC (“Origami”) for City of Palo Alto (“Client”). Capitalized terms not defined herein shall have the meanings set forth in the San Mateo Contract.
Origami entered into a contract with the County of San Mateo, a political subdivision of the State of California (“San Mateo”) to provide and implement a risk management information system, dated February 9, 2016 (“San Mateo Contract” or “Agreement”). Origami and Client wish to enter into this SOW for Origami to provide Client the services as set forth in this SOW on the same terms and conditions as the San Mateo Contract, subject to the following modifications:
1. Any reference to San Mateo in the San Mateo Contract shall instead be deemed to refer to Client for the purposes of this SOW. To the extent that this SOW conflicts with any provision of the San Mateo Contract, the provisions of this SOW shall govern.
2. The parties agree that this Order Form will apply to the services provided to the Client and the Statement of Work and Exhibit B “Pricing and Invoicing Schedule” of the San Mateo Contract shall be replaced in their entirety by this SOW and the related licenses and services of Order Form #20245000 executed in connection herewith.
OVERVIEW
This SOW sets forth the Professional Services to conduct the implementation of the Service. The term of this SOW shall begin on the Effective Date of Order Form #20245000 and continue until Go-Live (as described below).
This SOW does not include subscriptions to the Service. All subscriptions and associated fees are set forth in Order Form #20245000.
IMPLEMENTATION
Implementation Process
Implementation is the process of configuring the Service for use by Client including system settings, supporting Client in loading data, initial user training, and other work identified in this section of the SOW. The implementation phase is completed (“Go-Live”) when Client is able to utilize the Service for the purposes contemplated by the implementation tasks set forth below in this SOW, referred to by Origami as being Live in the system. Once Origami moves Client from its staging environment to its live production environment, any additional use of Origami’s staging environment after Go- Live will incur additional hosting fees.
Client’s provision of timely and accurate specifications, direction and feedback is essential to the implementation. Both parties understand that time is of the essence with regard to the implementation and agree to use reasonable and good faith efforts to promptly complete the implementation. Any voluntary project interruptions or stoppages ordered by Client outside of the project plan or any failures by Client to meet the obligations in the preceding sentence may result in the conversion of the implementation to a time and expense engagement, effective upon email notice from Origami to Client and billed monthly as incurred at Origami’s bundled hourly rate after crediting Client for any remaining unused portion of the fixed price.
Origami provides fixed price implementations based on (i) reasonable estimates from Client to complete the deliverables as scoped in this SOW and (ii) Client’s continued and uninterrupted effort toward Go-Live. Based on conversations with the Client, Origami estimates that it will need to provide 694 hours of Professional Services for the implementation deliverables set forth in this SOW (including, without limitation, training and project management hours). If there are any changes to the scope of such deliverables, the parties will agree to meet and negotiate in good faith an amendment to this SOW to resolve any issues and to address any additional requirements.
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Implementation Scope
Origami will work with Client to perform the following implementation tasks:
RMIS Configuration
System Configuration
Deliverable Scope
Legal Contract and Invoice
Management – Client
Defined Entity
Configure Legal Contract and Invoice Management
Includes:
● Contract Management configuration to provide the ability to track outside counsel invoices and have associated legal expenses charged to the appropriate claim financials (invoice could be from more than one claim). Three Client Defined Entities for contracts, invoices and claim charge backs.
Assumptions: Does not include loading of historical data into Origami.
User Security Configure up to 5 user security roles.
Workflow Configuration Provide up to 40 hours of Origami workflow configuration.
This bucket of hours will also be used to configure variances to the Origami standards, to configure additional workflow not explicitly noted elsewhere, and to configure additional features and functionality.
In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours.
Dashboard Configuration Client will have access to the Origami standard dashboards.
Provide up to 40 hours of assistance to configure default dashboards using standard Origami dashboard widgets or custom widgets via Origami’s standard Custom Widget Designer.
In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours.
Report Configuration Client will have access to Origami standard reports, as well as ad-hoc report tool and custom template builder.
Provide up to 40 hours of assistance to configure standard Origami report templates and/or create custom template via Origami’s standard Custom Template Designer.
Assumptions:
● Client will provide examples of existing reports they wish to have recreated in Origami.
In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours.
Mail Merge / Forms /
Letters
Includes up to 5 mail merges with up to 15 fields to map on each.
Assumptions:
The fields required on the mail merge forms exist within Origami.
Claim Form Configuration Configure Origami’s fields, codes, and forms for Claims:
Up to 3 Claims forms for coverages: Property, General Liability, Auto
Includes Origami’s best practice screen designs and will allow for a single round of changes on the specification(s) developed.
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Single Sign On (SSO) Origami will assist Client with configuration of SSO between Origami and Client Active Directory using a SAML 2.0 compliant method.
System / Needs Analysis Includes discovery and design discussions around overall system usage and deliverable -specific requirements.
Integrations
Deliverable Scope
Open Cities/ Open Forms
Import
Deploy the Origami standard import process to perform bulk inserts and updates of data.
Assumptions:
● Open Cities/Open Forms is the system of record.
● Client will provide the data file in delimited or fixed width format using Origami’s standard layout.
● File attachments will need to have an indexing element for linking
Convert Legacy System [CityLaw]
Deliverable Scope
Prior System Conversion Origami will convert the legacy data from CityLaw and import into the Service. Legacy data will include:
● Claims
● Incidents
● Transactions (reserves and payments)
● Notes
● Tasks (for calendar views)
● Contacts
● Locations
● File Attachments
Includes:
● Includes 1 test conversion and 1 live conversion.
Assumptions:
● Client will provide Origami with a full backup of CityLaw database including system schema and field definitions documentation. If database is vendor-hosted, Client will coordinate data extract and transmission to Origami with vendor. This includes final data for go-live.
● Client will be required to extract files stored in database as physical files from binary to be imported into Origami.
● Xybion, NoSQL or Mongo databases must be exported to flat files. ● Client will be responsible for necessary data cleanup prior to submission of final go live database. Alternatively, Client may work with Origami to prepare cleanup scripts that can be repeated for final go-live database after transmission. Origami will not create new cleanup scripts or participate in data cleanup after go-live database is transmitted ● Client has knowledgeable resource(s) available to assist with mapping legacy data to Origami.
● File formats will remain the same between test and live conversion.
Deployment
Deliverable Scope
Go-Live Support Provide go-live support for 30 calendar days following delivery of all the deliverables listed in this Implementation Scope section to address any issues in connection with the Implementation Scope described in this section.
Assumptions:
● Issues/requests relating to expanded scope will be addressed using Client’s ongoing support hours.
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Training Provide up to 24 hours of training to Client in year 1 of this SOW and provide additional training each subsequent year as needed. Time preparing for and conducting training are included in these hours. Professional Service hours will be eroded for training in future years. Training will be provided at Client offices or online at the Client’s request. Training can be provided in one session or several on mutual agreement between Client and Origami.
Assumptions:
● Client will provide Origami with guidance about the employees to be trained and any training requirements or a preferred approach.
● If training is to be provided in Client office, Client will provide appropriate meeting space and internet access so Origami can perform the training and also provide for transportation and other expenses for Client employees who attend the training.
In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of w ork to purchase such additional hours.
Documentation Includes creation of client documentation that aligns with the design, configuration and workflows of deliverables outlined.
Project Management
Deliverable Scope
Project Management Origami will designate a project manager to provide project management activities during the Implementation. Origami will follow a set of best practices and tools to manage the implementation project which includes the items listed below:
Origami will:
● Schedule and lead initial kickoff call or meeting.
● Lead 30-minute status calls every two weeks throughout the term of the project (or as otherwise agreed upon by both Origami and the Client) with attendees which will be determined at project kickoff and as may be adjusted as needed throughout the duration of the project.
● Maintain a project schedule on a weekly basis with key deliverables and expected dates to drive design, configuration, and sign off of specifications and unit testing for each deliverable to ensure project stays in scope and on time. ● Provide a project dashboard and QRAID (Questions, Risks, Actions, Issues, Decisions) log to provide oversight on issues which may impact scope, resources or timeline. ● Coordinate all activity within Origami to complete Origami’s tasks on schedule and ensure project team’s collaboration and accountability.
Client will:
● Participate in status calls and working meetings.
● Complete all Client assigned project tasks (e.g. discovery sessions, data gathering, unit testing, sign off) in accordance with the agreed upon timeline ● Coordinate all activity within Client’s organization to complete Client’s tasks on the project schedule.
● Coordinate all activity of Client’s 3rd party providers (data sources, brokers, TPAs, etc.) required to complete tasks on the project schedule
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Client Roles and Responsibilities
● Client will designate, prior to the start of the implementation, a single point of contact who shall be responsible to coordi nate and manage all activities required within Client’s organization to complete Client’s tasks on the project schedule and make decisions on behalf of Client. This single point of contact may be changed at any time upon Client’s notice to Origami. ● Client will designate, prior to the start of this engagement, at least one System Administrator (“Client SA”) who will be responsible for working with Origami to implement the Service and maintain the Service thereafter, and who will provide ongoing production support to Client’s users, both internal and external. More detailed responsibilities will be provided after project kickoff based on system requirements. Client SAs will be responsible for setting up and assigning security rights and maintaining user IDs for all users. Client SAs will have sufficient knowledge, skills and abilities to perform their identified project roles.
● Client will provide requested information within a reasonable timeframe as agreed upon by Client and Origami; if providing the requested information is not achievable or will take longer than preferred, Client will promptly inform Origami of the situation and alternative solutions will be determined. ● Client will help resolve project issues and assist with bringing issues to the attention of the appropriate persons within th e organization, as required.
● Client will coordinate all activity of Client’s 3rd party providers required to complete tasks on the project schedule and Cl ient will be primarily responsible for obtaining information and resolving any issues pertaining to third party products or services used by Client, if necessary. Client will be responsible for any charges levied by 3 rd party providers.
● Client agrees generally to provide other reasonable assistance and cooperation to see that services are successfully complet ed (e.g., participate in status calls and working meetings, provide specifications, direction, and feedback as needed by Origami in a timely manner, etc.)
● For any deliverables that Origami provides to Client for approval, Client will confirm approval or pr ovide necessary details on any requested remediation promptly.
● Client will be responsible for testing and quality assurance related to the implementation within the timeframe as agreed upon in the project schedule. Client will ensure that all configurations and customizations operate as intended (including functionality, usability and data access rights), and Origami shall not be responsible for any damages caused by any such configurations or customizations.
● Client will have final responsibility for decisions regarding all configurations and customizations (such as forms, dashboards, interfaces, reports, workflows and data flows), as agreed upon in the design documentation created by or for Client or Client’s users in the Service.
● Outside of the implementation scope set forth in this SOW, Client shall have the ability to configure additional default dashboards, fields, forms, user roles, distribution lists, reports and other features as needed by Client. ● Client will review and approve specifications provided by Origami and acknowledges that requests for substantial deviations from the specification are outside the scope of the project. ● Upon Origami’s completion of the deliverables set forth above, Client will provide written acknowledgment of Go- Live. ● At the conclusion of the implementation as set forth herein, Client agrees to use good faith efforts to respond to any Origami questionnaire or other request for feedback.
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PRICING AND INVOICE SCHEDULE
Origami will invoice Client $46,845.00 for the Professional Services detailed in this SOW. Such payment shall be invoiced by Origami upon signature of this SOW by both parties and due in accordance with the terms of the Agreement.
If needed, additional professional services can be purchased through a separate statement of work. All fees are subject to state sales tax, where applicable. All travel costs and expenses will be pre-approved by Client in writing and billed to Client as incurred.
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STATEMENT OF WORK APPROVAL
The undersigned agree to this Statement of Work.
ORIGAMI RISK LLC City of Palo Alto
By:__________________________________ By:__________________________________
Name:_______________________________ Name:_______________________________ (Print Name) (Print Name)
Title:________________________________
Date:________________________________
Title:_________________________________
Date:________________________________
APPROVED AS TO FORM:
__________________________
City Attorney or designee
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: December 16, 2024
Report #:2412-3853
TITLE
Adoption of a revised salary schedule for Limited Hourly employees to increase the maximum hourly rate for the Management Specialist classification; CEQA Status - not a project
RECOMMENDATION
Staff Recommends that the City Council adopt a revised salary schedule for limited hourly employees specifically increasing the maximum hourly rate that can be offered to Management Specialist classification.
EXECUTIVE SUMMARY
The City has undertaken substantial investment in career advancement and continuity planning to ensure critical City services and activities are supported at a high performing level now and into the future. A key component of this process is ensuring the subject matter expertise exists within critical areas of service to ensure the delivery of existing services and to train and pass on knowledge to developing internal talent. The Management Specialist classification has been and will continue to provide flexibility as needed and be utilized as a way of bringing on temporary, limited-term, highly experienced, skilled and knowledgeable individuals to take on acting roles when the City faces executive level vacancies, provide development and training to existing staff, or provide specific subject matter expertise.
BACKGROUND
The City of Palo Alto has a Limited Hourly Compensation plan that covers the wages and benefits associated with unrepresented hourly workers hired by the City. The Management Specialist classification is a long-standing range based hourly classification utilized for highly specialized, confidential, or management level assignments where the work is short term, temporary or sporadic in nature. Classifications within the Limited Hourly Compensation plan do not receive benefits such as medical, dental, or vision. Most limited hourly positions are not included in CalPERS pension plans unless the individual hired was already in CalPERS in which Item 18
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case they must limit their hours to less than 960 in any given fiscal year or be re-entered into CalPERS.
ANALYSIS
The salary schedule for the Management Specialist classification currently ranges from $17.69 per hour to $135.20 per hour. This classification has not had a market-based adjustment in over a decade. The proposed adjustment would increase the maximum salary to $200 per hour to align this critical classification with the current market rate for individuals at the Director, Assistant Director, and/or Division Manager level. As mentioned above, classifications within the Limited Hourly Compensation plan do not receive benefits such as medical, dental, or vision. While the City utilizes contractors and consultants, this classification and salary range will ensure the City has the ability to solicit and manage the level of subject matter expertise or direct supervision needed during vacancies in critical roles and critical projects. Increasing the salary range for the Management Specialist classification will allow the City to bring in high- level expertise when needed in a timelier manner and give the flexibility for them to manage and/or supervise as needed based on the assignment.
FISCAL/RESOURCE IMPACT
There is no fiscal impact to this action by Council. If/when a department submits a requisition to utilize the Management Specialist classification funding is identified in advance by the department from their existing budget to cover the costs of the position being requested.
STAKEHOLDER ENGAGEMENT
During the creation of workforce and continuity planning documents departments identified expected gaps/needs for high level subject matter expertise, managerial oversight, or staff development which led in part to this recommendation. City staff will post the revised salary schedule on the City’s website after Council adoption.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because adopting a revised salary schedules and compensation plan is a continuing administrative activity. CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A: Limited Hourly Salary Schedule FY 2023-24 APPROVED BY:
Sandra Blanch, Human Resources Director
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Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective upon Council Adoption (4% Increase + Target Adj)
Increase upon adoption (COLA +
Targeted Increase)
Effective Upon Council
Adoption 8/26/2023
(4% Increase +Target Adj)
Audit Effective 1/1/2024 (Min Wage) Pay Period Incl. 7/1/2024 (4% Increase)
1 $25.56 $26.59 4% COLA $26.84 -$0.25 $26.84 $27.91
2 $26.90 $27.99 1% targeted $28.25 -$0.26 $28.25 $29.38 910 Non-exempt Administrative Specialist I 3 $28.32 $29.46 5% total $29.74 -$0.28 $29.74 $30.93 4 $29.81 $31.01 $31.30 -$0.29 $31.30 $32.56
5 $31.38 $32.64 $32.95 -$0.31 $32.95 $34.27
1 $30.50 $31.71 4% COLA $32.02 -$0.31 $32.02 $33.32
2 $32.10 $33.38 1% targeted $33.71 -$0.33 $33.71 $35.07 913 Non-exempt Administrative Specialist II 3 $33.79 $35.14 5% total $35.48 -$0.34 $35.48 $36.92 4 $35.57 $36.99 $37.35 -$0.36 $37.35 $38.86
5 $37.44 $38.94 $39.32 -$0.38 $39.32 $40.90
1 $25.56 $27.87 4% COLA $27.87 $0.00 $27.87 $28.98
2 $26.90 $29.34 5% targeted $29.34 $0.00 $29.34 $30.50
915 Non-exempt Assistant Park Ranger 3 $28.32 $30.88 9% total $30.88 $0.00 $30.88 $32.11 4 $29.81 $32.50 $32.50 $0.00 $32.50 $33.80
5 $31.38 $34.21 $34.21 $0.00 $34.21 $35.58
1 $23.59 $24.54 4% COLA $24.79 -$0.25 $24.79 $25.77
2 $24.83 $25.83 1% targeted $26.09 -$0.26 $26.09 $27.13 916 Non-exempt Building Service Person 3 $26.14 $27.19 5% total $27.46 -$0.27 $27.46 $28.56 4 $27.52 $28.62 $28.90 -$0.28 $28.90 $30.06
5 $28.97 $30.13 $30.42 -$0.29 $30.42 $31.64
1 $20.69 $21.53 4% COLA $21.75 -$0.22 $21.75 $22.61
2 $21.78 $22.66 1% targeted $22.89 -$0.23 $22.89 $23.80 917 Non-exempt Clerical Assistant 3 $22.93 $23.85 5% total $24.09 -$0.24 $24.09 $25.05 4 $24.14 $25.11 $25.36 -$0.25 $25.36 $26.37
5 $25.41 $26.43 $26.69 -$0.26 $26.69 $27.76
1 $17.25 $17.96 4% COLA $18.38 -$0.42 $18.38 $19.12
2 $18.16 $18.90 2.5% targeted $19.35 -$0.45 $19.35 $20.13 918 Non-exempt Custodial Aide 3 $19.12 $19.89 6.5% total $20.37 -$0.48 $20.37 $21.19 4 $20.13 $20.94 $21.44 -$0.50 $21.44 $22.31
5 $21.19 $22.04 $22.57 -$0.53 $22.57 $23.48
1 $19.57 $20.35 4% COLA $20.84 -$0.49 $20.84 $21.69
2 $20.60 $21.42 2.5% targeted $21.94 -$0.52 $21.94 $22.83 919 Non-exempt Custodial Assistant 3 $21.68 $22.55 6.5% total $23.09 -$0.54 $23.09 $24.03 4 $22.82 $23.74 $24.31 -$0.57 $24.31 $25.29
5 $24.02 $24.99 $25.59 -$0.60 $25.59 $26.62
Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective upon Council Adoption (4% Increase + Target Adj)
Increase upon adoption (COLA +
Targeted Increase)
Effective Upon Council
Adoption 8/26/2023
(4% Increase +Target Adj)
Audit Effective 1/1/2024 (Min Wage) Pay Period Incl. 7/1/2024 (4% Increase)
1 $19.24 $20.49 4% COLA $20.49 $0.00 $20.49 $21.32
2 $20.25 $21.57 2.5% Targeted $21.57 $0.00 $21.57 $22.44 920 Non-exempt House Manager 3 $21.32 $22.71 6.5% total $22.71 $0.00 $22.71 $23.62 4 $22.44 $23.90 $23.90 $0.00 $23.90 $24.86
5 $23.62 $25.16 $25.16 $0.00 $25.16 $26.17
Limited Hourly Group Salary Schedule
Limited Hourly Group Salary Schedule
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1 $17.25 $17.96 4% COLA $18.38 -$0.42 $18.38 $19.12
2 $18.16 $18.90 2.5% Targeted $19.35 -$0.45 $19.35 $20.13 921 Non-exempt Instructor Aide 3 $19.12 $19.89 6.5% total $20.37 -$0.48 $20.37 $21.19 4 $20.13 $20.94 $21.44 -$0.50 $21.44 $22.31
5 $21.19 $22.04 $22.57 -$0.53 $22.57 $23.48
1 $24.16 $25.73 4% COLA $25.73 $0.00 $25.73 $26.77
2 $25.43 $27.08 2.5% Targeted $27.08 $0.00 $27.08 $28.18 922 Non-exempt Instructor I 3 $26.77 $28.51 6.5% total $28.51 $0.00 $28.51 $29.66 4 $28.18 $30.01 $30.01 $0.00 $30.01 $31.22
5 $29.66 $31.59 $31.59 $0.00 $31.59 $32.86
1 $29.41 $31.32 4% COLA $31.32 $0.00 $31.32 $32.58
2 $30.96 $32.97 2.5% Targeted $32.97 $0.00 $32.97 $34.29 923 Non-exempt Instructor II 3 $32.59 $34.70 6.5% total $34.70 $0.00 $34.70 $36.09 4 $34.30 $36.53 $36.53 $0.00 $36.53 $37.99
5 $36.10 $38.45 $38.45 $0.00 $38.45 $39.99
1 $33.85 $35.21 4% COLA $36.05 -$0.84 $36.05 $37.50
2 $35.63 $37.06 2.5% Targeted $37.95 -$0.89 $37.95 $39.47 982 Non-exempt Instructor III 3 $37.50 $39.01 6.5% total $39.95 -$0.94 $39.95 $41.55 4 $39.47 $41.06 $42.05 -$0.99 $42.05 $43.74
5 $41.55 $43.22 $44.26 -$1.04 $44.26 $46.04
1 $31.05 $32.30 4% COLA $32.60 -$0.30 $32.60 $33.92
2 $32.68 $34.00 1% targeted $34.32 -$0.32 $34.32 $35.70 924 Non-exempt Librarian 3 $34.40 $35.79 5% total $36.13 -$0.34 $36.13 $37.58 4 $36.21 $37.67 $38.03 -$0.36 $38.03 $39.56
5 $38.12 $39.65 $40.03 -$0.38 $40.03 $41.64
1 $23.13 $24.06 4% COLA $25.21 -$1.15 $25.21 $26.23
2 $24.35 $25.33 5% targeted $26.54 -$1.21 $26.54 $27.61 925 Non-exempt Library Clerk 3 $25.63 $26.66 9% total $27.94 -$1.28 $27.94 $29.06 4 $26.98 $28.06 $29.41 -$1.35 $29.41 $30.59
5 $28.40 $29.54 $30.96 -$1.42 $30.96 $32.20
Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective upon Council Adoption (4% Increase + Target Adj)
Increase upon adoption (COLA +
Targeted Increase)
Effective Upon Council
Adoption 8/26/2023
(4% Increase +Target Adj)
Audit Effective 1/1/2024 (Min Wage) Pay Period Incl. 7/1/2024 (4% Increase)
1 $17.25 $18.82 4% COLA $18.82 $0.00 $18.82 $19.58
2 $18.16 $19.81 5% targeted $19.81 $0.00 $19.81 $20.61
930 Non-exempt Library Page 3 $19.12 $20.85 9% total $20.85 $0.00 $20.85 $21.69 4 $20.13 $21.95 $21.95 $0.00 $21.95 $22.83
5 $21.19 $23.10 $23.10 $0.00 $23.10 $24.03
1 $18.61 $19.36 4% COLA $19.82 -$0.46 $19.82 $20.62
2 $19.59 $20.38 2.5% Targeted $20.86 -$0.48 $20.86 $21.71 935 Non-exempt Maintenance Assistant 3 $20.62 $21.45 6.5% total $21.96 -$0.51 $21.96 $22.85 4 $21.71 $22.58 $23.12 -$0.54 $23.12 $24.05
5 $22.85 $23.77 $24.34 -$0.57 $24.34 $25.32
1 $18.61 $19.36 4% COLA $20.29 -$0.93 $20.29 $21.10
2 $19.59 $20.38 5% targeted $21.36 -$0.98 $21.36 $22.21 936 Non-exempt Open Space Technician 3 $20.62 $21.45 9% total $22.48 -$1.03 $22.48 $23.38 4 $21.71 $22.58 $23.66 -$1.08 $23.66 $24.61
5 $22.85 $23.77 $24.91 -$1.14 $24.91 $25.91
Limited Hourly Group Salary Schedule
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1 $23.13 $24.06 4% COLA $24.28 -$0.22 $24.28 $25.27
2 $24.35 $25.33 1% targeted $25.56 -$0.23 $25.56 $26.60 937 Non-exempt Print Shop Assistant 3 $25.63 $26.66 5% total $26.91 -$0.25 $26.91 $28.00 4 $26.98 $28.06 $28.33 -$0.27 $28.33 $29.47
5 $28.40 $29.54 $29.82 -$0.28 $29.82 $31.02
1 $33.46 $35.12 4% COLA $35.12 $0.00 $35.12 $36.55
2 $35.22 $36.97 1% targeted $36.97 $0.00 $36.97 $38.47
938 Non-exempt Project Construction Inspector 3 $37.07 $38.92 5% total $38.92 $0.00 $38.92 $40.49 4 $39.02 $40.97 $40.97 $0.00 $40.97 $42.62
5 $41.07 $43.13 $43.13 $0.00 $43.13 $44.86
1 $25.56 $26.59 4% COLA $26.84 -$0.25 $26.84 $27.91
2 $26.90 $27.99 1% targeted $28.25 -$0.26 $28.25 $29.38 939 Non-exempt Project Specialist 3 $28.32 $29.46 5% total $29.74 -$0.28 $29.74 $30.93 4 $29.81 $31.01 $31.30 -$0.29 $31.30 $32.56
5 $31.38 $32.64 $32.95 -$0.31 $32.95 $34.27
Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective upon Council Adoption (4% Increase + Target Adj)
Increase upon adoption (COLA +
Targeted Increase)
Effective Upon Council
Adoption 8/26/2023
(4% Increase +Target Adj)
Audit Effective 1/1/2024 (Min Wage) Pay Period Incl. 7/1/2024 (4% Increase)
1 $17.25 $18.38 4% COLA $18.38 $0.00 $18.38 $19.12
2 $18.16 $19.35 2.5% Targeted $19.35 $0.00 $19.35 $20.13 941 Non-exempt Recreation Leader I 3 $19.12 $20.37 6.5% total $20.37 $0.00 $20.37 $21.19 4 $20.13 $21.44 $21.44 $0.00 $21.44 $22.31
5 $21.19 $22.57 $22.57 $0.00 $22.57 $23.48
1 $19.12 $20.37 4% COLA $20.37 $0.00 $20.37 $21.19
2 $20.13 $21.44 2.5% Targeted $21.44 $0.00 $21.44 $22.31 942 Non-exempt Recreation Leader II 3 $21.19 $22.57 6.5% total $22.57 $0.00 $22.57 $23.48 4 $22.31 $23.76 $23.76 $0.00 $23.76 $24.72
5 $23.48 $25.01 $25.01 $0.00 $25.01 $26.02
1 $21.19 $22.57 4% COLA $22.57 $0.00 $22.57 $23.48
2 $22.31 $23.76 2.5% Targeted $23.76 $0.00 $23.76 $24.72 943 Non-exempt Recreation Leader III 3 $23.48 $25.01 6.5% total $25.01 $0.00 $25.01 $26.02 4 $24.72 $26.33 $26.33 $0.00 $26.33 $27.39
5 $26.02 $27.72 $27.72 $0.00 $27.72 $28.83
1 $18.51 $19.25 4% COLA $19.71 -$0.46 $19.71 $20.49
2 $19.48 $20.26 2.5% Targeted $20.75 -$0.49 $20.75 $21.57 948 Non-exempt Stock Clerk 3 $20.50 $21.33 6.5% total $21.84 -$0.51 $21.84 $22.71 4 $21.58 $22.45 $22.99 -$0.54 $22.99 $23.91
5 $22.72 $23.63 $24.20 -$0.57 $24.20 $25.17
1 $20.69 $21.53 4% COLA $21.75 -$0.22 $21.75 $22.61
2 $21.78 $22.66 1% targeted $22.89 -$0.23 $22.89 $23.80 950 Non-exempt Technical Specialist 3 $22.93 $23.85 5% total $24.09 -$0.24 $24.09 $25.05 4 $24.14 $25.11 $25.36 -$0.25 $25.36 $26.37
5 $25.41 $26.43 $26.69 -$0.26 $26.69 $27.76
1 $17.25 $17.96 4% COLA $18.38 -$0.42 $18.38 $19.12
2 $18.16 $18.90 2.5% Targeted $19.35 -$0.45 $19.35 $20.13 954 Non-exempt Arts & Science Aide 3 $19.12 $19.89 6.5% total $20.37 -$0.48 $20.37 $21.19 4 $20.13 $20.94 $21.44 -$0.50 $21.44 $22.31
5 $21.19 $22.04 $22.57 -$0.53 $22.57 $23.48
Limited Hourly Group Salary Schedule
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1 $24.16 $25.37 4% COLA $25.73 -$0.36 $25.73 $26.77
2 $25.43 $26.70 2.5% Targeted $27.08 -$0.38 $27.08 $28.18 951 Non-exempt Arts & Science Professional I 3 $26.77 $28.11 6.5% total $28.51 -$0.40 $28.51 $29.66 4 $28.18 $29.59 $30.01 -$0.42 $30.01 $31.22
5 $29.66 $31.15 $31.59 -$0.44 $31.59 $32.86
Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective upon Council Adoption (4% Increase + Target Adj)
Increase upon adoption (COLA +
Targeted Increase)
Effective Upon Council
Adoption 8/26/2023
(4% Increase +Target Adj)
Audit Effective 1/1/2024 (Min Wage) Pay Period Incl. 7/1/2024 (4% Increase)
1 $29.41 $30.59 4% COLA $31.32 -$0.73 $31.32 $32.58
2 $30.96 $32.20 2.5% Targeted $32.97 -$0.77 $32.97 $34.29 952 Non-exempt Arts & Science Professional II 3 $32.59 $33.89 6.5% total $34.70 -$0.81 $34.70 $36.09 4 $34.30 $35.67 $36.53 -$0.86 $36.53 $37.99
5 $36.10 $37.55 $38.45 -$0.90 $38.45 $39.99
1 $33.85 $35.21 4% COLA $36.05 -$0.84 $36.05 $37.50
2 $35.63 $37.06 2.5% Targeted $37.95 -$0.89 $37.95 $39.47 983 Non-exempt Arts & Science Professional III 3 $37.50 $39.01 6.5% total $39.95 -$0.94 $39.95 $41.55 4 $39.47 $41.06 $42.05 -$0.99 $42.05 $43.74
5 $41.55 $43.22 $44.26 -$1.04 $44.26 $46.04
1 $17.32 $18.01 4% COLA $18.45 -$0.44 $18.45 $19.19
2 $18.23 $18.96 2.5% Targeted $19.42 -$0.46 $19.42 $20.20 953 Non-exempt Arts & Science Technician 3 $19.19 $19.96 6.5% total $20.44 -$0.48 $20.44 $21.26 4 $20.20 $21.01 $21.52 -$0.51 $21.52 $22.38
5 $21.26 $22.12 $22.65 -$0.53 $22.65 $23.56
1 $25.56 $26.59 4% COLA $27.22 -$0.63 $27.22 $28.31
2 $26.90 $27.99 2.5% Targeted $28.65 -$0.66 $28.65 $29.80 955 Non-exempt Zoological Assistant 3 $28.32 $29.46 6.5% total $30.16 -$0.70 $30.16 $31.37 4 $29.81 $31.01 $31.75 -$0.74 $31.75 $33.02
5 $31.38 $32.64 $33.42 -$0.78 $33.42 $34.76
1 4% COLA
2 960 Non-exempt Police Reserve I 3 $53.50 $55.64 $0.00 4 5
1 4% COLA
2 961 Non-exempt Police Reserve II 3 $47.95 $49.87 $0.00 4 5
1 $18.61 $19.36 4% COLA $19.36 $0.00 $19.36 $20.14
2 $19.59 $20.38 $20.38 $0.00 $20.38 $21.20
962 Non-exempt Technician I 3 $20.62 $21.45 $21.45 $0.00 $21.45 $22.32 4 $21.71 $22.58 $22.58 $0.00 $22.58 $23.49
5 $22.85 $23.77 $23.77 $0.00 $23.77 $24.73
$49.87 $51.87
$55.64 $57.87
Limited Hourly Group Salary Schedule
$55.64
$49.87
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Attachment A - Limited Hourly Salary
Schedule FY 2023-24
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Schedule FY 2023-24
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 16, 2024
Report #:2411-3805
TITLE
Adoption of a Resolution of Intention to Reimburse Expenditures for the Grid Modernization and Related Projects of the Electric Utility System Infrastructure from the Proceeds of Tax-Exempt Utility Revenue Bonds.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution of intention to reimburse expenditures for the grid modernization and related projects from the proceeds of tax-exempt (Electric) Utility Revenue Bonds.
BACKGROUND
On June 17, 2024, Council adopted the Electric Fund’s capital budgets for FY 2025 and conceptually approved a capital expenditure plan for FY 2026 through FY 2029. This plan included, in concept, issuing debt to fund the Electric Grid Modernization for Community-Wide Electrification Project (CIP Project No. EL-24000), or Grid Modernization project. The Grid Modernization project is estimated to take 7 to 10 years and cost up to $306 million, depending upon the approach and material costs.
The Grid Modernization Project was developed to enhance the distribution system’s grid resiliency and reliability in a manner that will continue to accelerate the City’s clean energy and decarbonization goals. Palo Alto’s grid must be modernized to reach the capacity required to electrify all homes and cars. The modernized system will be designed to fully accommodate energy received from local generation such as rooftop solar and battery storage, an important element in decarbonization goals. There will be an upgrade to the distribution system to incorporate local generation, allow two-way power flow, meet projected capacity needs, enhance voltage regulation and system protection requirements, and provide a high level of resiliency and reliability.
The Project’s three main objectives are:
•Increase capacity on the Electric Grid to allow for the addition of new electrical load from the electrification of heating load, electric vehicles, and battery storage.
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•Enhance system reliability and resiliency by installing advanced distribution network protection schemes.
•Implement distribution system control technologies to allow for high levels of solar penetration, battery storage, distributed energy resources, and electric vehicles.
To meet the expected increase in demands, this Project will increase network capacity. Capacity increases will include the following work:
•Converting 4kV systems to 12kV.
•Installing more distribution transformers with greater capacity. •Rebuilding secondary networks by increasing the conductor size and creating more secondary networks.
•Replacing four distribution substation transformers at two substations with larger transformers having greater capacity.
ANALYSIS
Work on Grid Modernization project work has already begun. Staff anticipates selling the first series of the (Electric) Utility Revenue Bonds towards the end of the 2025 calendar year. Due to the long project duration and federal law requirement on the spending time limit on tax-exempt bond spending, multiple bond issuance will be needed over the next decade. The proposed resolution allows the City’s Utility enterprise fund to use bond proceeds to reimburse itself for certain pre-construction and construction costs related to the Grid Modernization project but incurred before the bonds are issued. The reimbursement of these expenditures would restore the Electric Fund’s reserve(s) for these expenditures. Staff recommends that Council approve the attached resolution (Attachment A). This does not authorize any issuance of debt or financial obligation to the City.
Though the project work has begun, the bond issuance is being delayed by a year to leverage the projects cash reserves and minimize financing cost. Current forecasts anticipate in the upcoming year declining interest rate environment due to the Federal Open Market Committee’s (FOMC) expected federal funds interest rate cuts, which will impact the borrowing interest rate on these tax-exempt bonds.
FISCAL/RESOURCE IMPACT
It is estimated that the principal amount of the first series utility revenue tax-exempt bonds to be issued to be in the range of $70 million to $100 million. The amount of this bond issuance that will be able to be reimbursed under this resolution is subject to the amount of work that has and will be done in the coming year. Once the bonds are issued, subject to authorization by the City Council, then all future expenditures for this project will be reimbursed under the bond issuance authority. All financial transactions associated with issuance of debt will require Council action later and authorization of this resolution does not obligate the Council to issue debt in the future should plans change.
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STAKEHOLDER ENGAGEMENT
Staff works internally (e.g., Utility, City Attorney’s Office, and Administrative Services) and with external parties (Financial Advisor, Bond and Disclosure Counsels, Paying Agent, etc.) to prepare this resolution and to eventually issue the bonds.
ENVIRONMENTAL REVIEW
Council action on this item is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines because the adoption of a reimbursement resolution is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).
In addition, Council’s approval of the grid modernization project(s) does not require additional environmental review under CEQA Guidelines section 15183, because the grid modernization project, an element of the Council-approved S/CAP, is consistent with the Environmental Impact Report (EIR) Addendum to the City of Palo Alto Comprehensive Plan Final Environmental Impact Report Council approved on June 5, 20231.
ATTACHMENTS
Attachment A: Resolution of the City of Palo Alto Declaring Intention to Reimburse Expenditures from the Proceeds of Tax-Exempt Debt
APPROVED BY:
Lauren Lai, Administrative Services Director
1 Environmental Impact Report, item # 14:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12530 Item 19
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*** NOT YET APPROVED ***
1 0005_20241015
Resolution No. _____
A Resolution of the City of Palo Alto Declaring Intention to Reimburse Expenditures Relating to Modernization of the Electric Utility System Infrastructure from the Proceeds of Tax-Exempt Debt
WHEREAS, the City of Palo Alto (the “City”) operates a system for the distribution of electric energy (the “Electric System”); and
WHEREAS, the City provides electricity from a 100% carbon neutral portfolio, and has been in the forefront of efforts to design programs allowing customers to easily use clean energy; and
WHEREAS, one major initiative in the City’s Sustainability and Climate Action Plan (“S/CAP”) is to promote the transition to all-electric homes and electric vehicles (“EVs”) to reduce greenhouse gas (“GHG”) emissions; and
WHEREAS, in 2020, the City launched an update to the S/CAP to reduce GHG emissions 80 percent below 1990 levels, i.e., reduce 624,095 metric tons of greenhouse gases by 2030 (the “80 x 30 goal"); and
WHEREAS, a 2021 impact analysis showed that to meet the “80 x 30 goal”, the City must electrify all of its roughly 15,000 single-family homes, replacing natural gas equipment with efficient electric alternatives; and
WHEREAS, the City recently conducted an electrification study to evaluate the impacts of projected electrification loads from converting houses to electrical power and the adoption of EVs on the City’s distribution and substation transformers, primary/secondary distribution circuits, and to propose upgrades needed to mitigate overloads; and
WHEREAS, in response, the City developed the Electric Grid Modernization for Electrification Project (“Modernization Project”) to increase distribution capacity, enhance grid resiliency and reliability of the electric distribution system, and to continue to accelerate the City’s clean energy and decarbonization goals; and
WHEREAS, to meet the expected increase in demands, the Modernization Project will increase network capacity; capacity increases will include the following work:
• converting 4kV systems to 12kV,
• installing more distribution transformers with greater capacity, • rebuilding secondary networks by increasing the conductor size and creating more secondary networks, and
Item 19
Attachment A -
Resolution of the City of
Palo Alto Declaring
Intention to Reimburse
Expenditures from the
Proceeds of Tax-Exempt
Debt
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2 0005_20241015
• replacing distribution substation transformers, breakers and feeders at three substations to increase capacity; and
WHEREAS, in addition, the City expects to finance acquisition and construction of a Hanover substation improvement and the acquisition of land for use in the construction of the Electric Grid Modernization for Electrification Project, among other things; and
WHEREAS, the estimated cost of the Modernization Project, the Hanover substation improvement and the land acquisition (collectively, “Project”) is between $220 million to $306 million, depending on the approach and cost of materials; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE, as follows:
1. The City intends to issue one or more series of debt payable from its Electric System revenues, including, but not limited to revenue bonds, loans and installment purchase obligations (collectively, the “Bonds”) for the purpose of paying the costs of the Project.
2. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance of the Bonds, and (ii) to use a portion of the proceeds of the Bonds for reimbursement of expenditures for the Project that are paid before the date of issuance of the Bonds.
//
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//
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Attachment A -
Resolution of the City of
Palo Alto Declaring
Intention to Reimburse
Expenditures from the
Proceeds of Tax-Exempt
Debt
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3 3. The principal amount of the Bonds is not expected to exceed $350,000,000, not including the amount needed to pay for debt service reserve funds, costs of issuance and capitalized interest.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Chief Assistant City Attorney
Jones Hall,
A Professional Law Corporation
By: _______________________
Christopher K. Lynch
Jones Hall, A Professional Law
Corporation Bond Counsel
0005_20241015
__________________________
Mayor
APPROVED AS TO CONTENT:
__________________________
City Manager
__________________________
Director of Utilities
__________________________
Director of Administrative Services/
Chief Financial Officer
Item 19
Attachment A -
Resolution of the City of
Palo Alto Declaring
Intention to Reimburse
Expenditures from the
Proceeds of Tax-Exempt
Debt
Item 19: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 16, 2024
Report #:2406-3118
TITLE
Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2024 and the Macias, Gini & O’Connell Management Letter; Approve the FY 2024 Annual Comprehensive Financial Report; and Amend the FY 2024 Budget in Various Funds, as Recommended by the Finance Committee; CEQA Status – Not a Project
RECOMMENDATION
Finance Committee and Staff recommend that the City Council:
1. Accept the City of Palo Alto’s audited financial statements for the fiscal year ended June 30, 2024, and the accompanying reports prepared by Macias Gini & O’Connell LLP (“MGO”)1.
Reports include:
a. Report to the City Council (the “Management Letter”), b. Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise Revenues and Expenses for the years ended December 31, 2023, and 2022, c. Palo Alto Public Improvement Corporation (a component unit of the City of Palo Alto) Annual Financial Report for the year ended June 30, 2024, d. Regional Water Quality Control Plant, Independent Auditor’s Report and Financial Statements for the year ended June 30, 2024,
e. Pedestrian/Bicycle Facilities Grant Metropolitan Transportation Commission Transportation Development Act Funds, Article III, Independent Auditor’s Reports, Financial Statements and Supplementary Information for the year ended June 30, 2024, and
f. Independent Accountant’s Report on Applying Agreed-Upon Procedures related to the Article XIII-B Appropriations (GANN) Limit for the year ended June 30, 2024. 1 Finance Committee, 12/3/2024, Item #1A – CMR# 2405-3095 Finance Committee Staff Report, Discussion and Recommendation to the City Council to Accept the Macias Gini & O’Connell’s Audit of the City of Palo Alto’s Financial Statements as of June 30, 2024:
https://portal.laserfiche.com/Portal/DocView.aspx?id=111741&repo=r-704298fc&searchid=6a6510e4-9113-4436- b73b-41d0557c1a9a
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2. Approve the Fiscal Year (FY) 2024 Annual Comprehensive Financial Report (ACFR) and reports collectively referred to as the Single Audit in CMR #2404-29122. An electronic copy is available on the City’s website3;
3. Amend the Fiscal Year 2024 Budget for various funds as identified Recommended Amendments to the City Manager’s FY 2024 Budget; referenced as “Attachment B – Exhibit 1 and various capital projects as identified in Attachment B – Exhibit 2” (Attachment I) in CMR #2404-29122 PDF pp.26-40 (Effective on first reading; five votes required).
BACKGROUND
Every year, the fiscal year is closed out and the City Council publishes the City’s financial report (Palo Alto Municipal Code 2.28.200). At the December 3, 2024 Finance Committee meeting, the Committee reviewed two staff reports: one transmitted by the City Auditor’s Office and one by the City Manager’s Office via the Administrative Services Department, and unanimously approved both reports for City Council consideration4:
•Office of the City Auditor: Discussion and Recommendation to the City Council to Accept the MGO Audit of the City of Palo Alto’s Financial Statements as of June 30, 20241. •Administrative Services Department: Recommendation to Approve the Fiscal Year (FY) 2024 ACFR and Approve FY 2024 Budget Amendments in Various Funds2.
MGO issued a clean opinion on each audit report. The City also received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its FY 2023 ACFR.
ANALYSIS
Government-wide
As outlined in the staff report to the Finance Committee, at the close of FY 2024, the City’s total Net Position was $1.5 billion, an increase of $98.1 million or 7.2% over the prior fiscal year. The total increase of $98.1 million consists of $35.1 million from governmental activities and $63.0 million from business-type activities. Approximately 75% of this increase is attributable to net investment in capital assets (Public Safety Building, Secondary Treatment Upgrades, 2 Finance Committee, 12/3/2024, Item #1B – CMR# 2404-2912 Finance Committee Staff Report, Approval of the FY 2024 ACFR, and Year-End Budget Amendments in Various Funds:
https://portal.laserfiche.com/Portal/DocView.aspx?id=111742&repo=r-704298fc&searchid=8c3d4a87-72ab-4009- 9048-be41f809fa5e
3 https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/financial-reporting/annual- comprehensive-financial-reports-acfr/current-2011-cafrs/city-of-palo-alto-acfr-single-audit-fy2024-final- unsercured.pdf
4 December 3, 2024, Finance Committee Action Minutes:
https://portal.laserfiche.com/Portal/DocView.aspx?id=112268&repo=r-704298fc Item 20
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Wastewater Collection Rehabilitation and Augmentation projects, and Smart Grid Technology installation) are the primary drivers and restricted funds (i.e., grants, impact fees, pension trust fund), primarily due to additional pension trust contributions and increase of its fair market value. Recoveries in fair market value of investment portfolio primarily accounts for the remaining growth in unrestricted net position. The 95% of citywide net position is comprised of net investment in capital assets of $1.2 billion (86%) and restricted net position of $104 million (9%), leaving unrestricted net position of $48.9 million or 5%.
General Fund
Overall, at the end of the current fiscal year, the General Fund’s fund balance was $106.7 million, of which $53.7 million is unassigned fund balance. The main difference between the BSR balance ($65.9 million) and unassigned fund balance is the investment unrealized loss adjustment, as required by Governmental Accounting Standards Board (GASB) Statement No.
31. Discussion can be found in staff’s December 3, 2024 report to the Finance Committee2.
The Finance Committee discussed the status of the General Fund and the Budget Stabilization Reserve (BSR) balance. By policy, the City maintains a BSR balance of 15-20% of the annual operating expense, with a target level of 18.5%. After adjusting the BSR for FY 2025 uses approved by Council5, the net BSR balance was $63.3 million, or $8.9 million above Council’s
18.5% BSR target level. The $8.9 million is comprised of $7.9 million or a 1.5% budget variance compared to the total FY 2024 actual General Fund revenues and expenditures, well within acceptable standard deviation given the complexity, size, and fluctuation of the General Fund budget. In addition, the remaining $1 million variance is due to an isolated misclassification of prior year reappropriation, which staff discovered in the year-end close reconciliation.
Additional discussion and detail can be found in the December 3rd Finance Committee staff report2.
Staff recommends that the $8.9 million above the 18.5% BSR target level be allocated between the Capital Fund Infrastructure Reserve (IR) ($3.0 million) and Budget Uncertainty Reserve ($5.9 million). The budget actions to allocate the BSR funds above the 18.5% target level will be included in the FY 2025 Mid-Year Review (February 2025).
Enterprise Funds
As of June 30, 2024, the City’s Enterprise Funds reported a total net position of $882.5 million, an increase of $55.3 million or 6.7% from the prior fiscal year. Discussion can be found in staff’s December 3, 2024 report to the Finance Committee2.
5 City Council Meeting, June 17 2024, Staff Report 2406-3140:
https://portal.laserfiche.com/Portal/DocView.aspx?id=73983&repo=r-704298fc&searchid=fe0b0b3a-a510-4161- b80b-7f2c52881023
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FISCAL/RESOURCE IMPACT
The actions recommended in CMR 2404-2912 pages2 Attachment B, both Exhibits 1 and 2, recommend adjustments to the FY 2024 appropriated level of funds to align budgeted levels with year-end activities.
STAKEHOLDER ENGAGEMENT
This report has been prepared by the Administrative Service Department Accounting division and coordinated with the Office of the City Auditor and the Office of Management and Budget.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the acceptance of the audited financial reports for the fiscal year ending June 30, 2024 , approval of the ACFR for Fiscal Year 2024, and the amendment to the Fiscal Year 2024 Budget Appropriation Ordinance are fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: FY 2024 Budget Amendments, Schedule B, Exhibit 1 and 2 APPROVED BY:
Lauren Lai, Administrative Services Director
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Department Adjustment Adjustment
GENERAL FUND (102)
City Manager's
Office
Salaries and Benefits
This action aligns budget levels with actual expenditures. First, to increase the Salaries and Benefits allocation due to unbudgeted hourly positions that are specifically focused on economic development initiatives on California Ave. and University Avenue and sustainability and climate action communications. Second, to align budget with costs reflected in CMR that are shared with another department, causing vacancy savings in other departments (i.e.
Administrative Services) that offset these additional costs. -$ 337,000$
Non-
Departmental
Transient Occupancy Tax Revenue/Transfer to Capital Improvement Fund This action increases the transfer to the Capital Improvement Fund as it relates to Transient Occupancy Tax (TOT) revenues earmarked for city-wide infrastructure improvements due to higher than anticipated TOT collections in FY 2024.
1,570,000$ 1,570,000$
Planning &
Development
Services
Transfer from Housing Funds/525 East Charleston Road/Mitchell Park Place This action reverses a previously approved transfer outlined in Staff Report #2310-2167 from the Housing In-Lieu/Residential Fund ($1.5M) and the Local Housing Trust Fund Grant Fund ($1.5M) to the General Fund. Undoing this transfer will redirect the distribution of $3.0M for the Eden Housing 525 E. Charleston Rd. project through the Housing In-Lieu/Residential Fund and the Local Housing Trust Fund Grant Fund instead of the General Fund to align with best practices for disbursing state housing grant funds.
(3,000,000)$ (3,000,000)$
Police Salaries and Benefits
This action increases the allocation for Salaries and Benefits in the Police Department by $0.8 million, and includes $0.4 million to cover the reduction of funding for the PERT Program described below. A portion of the increased allocation ($0.3 million) is due to reimbursable grant-related overtime that was actualized in the General Fund and not charged to the Supplemental Law Enforcement Services Fund. The remaining $0.1 million is due to the Department experiencing higher than anticipated salary and benefit expenses, specifically in overtime costs. This is primarily due to an above average amount of employee leave for illness and training and the need to maintain minimum staffing levels in dispatch and patrol operations which requires the use of overtime for backfill. -$ 805,000$
Police Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2024 Adopted Budget for a mental health clinician to support the PERT Program. The funds were unspent due to the inability to source and supply a clinician, so the funds will be returned to the SUMC Fund and recommended to be used in the future to support the PERT Program when the County can provide a clinician.
(366,000)$ (366,000)$
Public Works Departmental Expense Savings
This action reallocates departmental savings of $1.1 million within the General Fund in order to offset departments with higher than anticipated expenses in FY 2024. The Public Works Department realized a net savings, primarily in Salary and Benefits due to vacancies and in Contract Services due to delays in several contracts. Key vacancies include a Project Manager, a Manager of Maintenance Operations, an Electrician, and several tree maintenance positions.
Contracts delays include the Security Guard contract for the MSC, S/CAP consultant services; fire alarm, sprinkler, and extinguisher contracts; and several Urban Forestry contracts. -$ (1,142,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ -$
GENERAL FUND (102) SUBTOTAL (1,796,000)$ (1,796,000)$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
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Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
344,793$ 344,793$
Capital Transfer from Community Development Block Grant Fund/Sidewalk Repairs (PO-89003) This action reduces the transfer of funds to support capital project PO-89003, because work was not done on this project in FY 2024. The transfer of funds for PO-89003 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (511,673)$ -$
Capital Transfer from Gas Tax Fund/Streets Maintenance (PE-86070) This action increases the transfer from the Gas Tax Fund as a result of SB1 Gas Tax revenue from the State of California that came in higher than budgeted levels. SB1 funding is designated for street improvement projects, so it will be added to the Streets Maintenance capital project (PE-86070).
128,000$ -$
Capital Transfer from General Fund
This action increases the transfer from the General Fund related to TOT revenue Council earmarked to use for city-wide infrastructure improvements due to actual revenue collected being higher than budgeted in FY 2024.
1,570,000$ -$
Capital Transfer from Library Impact Fee Fund/Library Project (LB-21000) This action reduces the transfer of funds to support capital project LB-21000, because work was not done on this project in FY 2024. The transfer of funds for LB-21000 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (382,983)$ -$
Capital Transfer from Parks Impact Fee Fund/Park Restroom Installation Project (PG-19000) This action reduces the transfer of funds to support capital project PG-19000, because work was not done on this project in FY 2024. The transfer of funds for PG-19000 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (629,570)$ -$
Capital Transfer from Refuse Fund/MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (10,000)$ -$
Capital Transfer from University Avenue Parking in Lieu Fee Fund/Downtown Parking Garage Project (PE-15007)
This action reduces the transfer of funds to support capital project PE-15007, because work was not done on this project in FY 2024. The transfer of funds for PE-15007 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (5,398,600)$ -$
Capital Transfer from Utilities Administration Fund/MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (315,000)$ -$
Capital Transfer from Vehicle Replacement and Maintenance Fund/MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. (175,000)$ -$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (5,724,825)$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL (5,380,033)$ (5,380,033)$ Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 59,429$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL -$ 59,429$ ELECTRIC FUND (513 & 523)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 2,507,491$
ELECTRIC FUND (513 & 523) SUBTOTAL -$ 2,507,491$ REFUSE FUND (525)
Public Works Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (10,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 10,000$
REFUSE FUND (525) SUBTOTAL -$ -$
STORMWATER MANGEMENT FUND (528)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 88,014$
STORMWATER MANGEMENT FUND (528) SUBTOTAL -$ 88,014$ UTILITIES ADMINISTRATION FUND (521)
Utilities Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (315,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 315,000$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL -$ -$ WASTEWATER COLLECTION FUND (527)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 285$
WASTEWATER COLLECTION FUND (527) SUBTOTAL -$ 285$ WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 569,941$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
WASTEWATER TREATMENT FUND (526) SUBTOTAL -$ 569,941$ WATER FUND (522)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 888,267$
WATER FUND (522) SUBTOTAL -$ 888,267$
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL LIABILITIES INSURANCE FUND (689)
Non-
Departmental
Excess Insurance Reimbursement/Liability Claims
This action recognizes revenue and expense related to a settlement of $12.0 million that was resolved in FY 2024. The City is self-insured up to $1.0 million and received the remaining $11.0 million from the insurance company in order to pay out the claim. 11,000,000$ 11,000,000$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 11,000,000$ 11,000,000$ VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 72,773$
Public Works Transfer to the Capital Improvement Fund for MSC Lighting Project (PF-16006) This action reduces the transfer of funds to support capital project PF-16006, because work was not done on this project in FY 2024. The transfer of funds for PF-16006 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (175,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 102,227$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL -$ -$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT FUND (232)
Planning &
Development
Services
Transfer to the Capital Improvement Fund for Sidewalk Repair Project (PO-89003) This action reduces the transfer of funds to support capital project PO-89003, because work was not done on this project in FY 2024. The transfer of funds for PO-89003 was reappropriated to FY 2025 in order to align funding with anticipated project expense. -$ (511,673)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 511,673$
COMMUNITY DEVELOPMENT BLOCK GRANT FUND (232) SUBTOTAL -$ -$ GAS TAX FUND (231)
Administrative
Services
Revenue from the State of California/Transfer to Capital Improvement Fund for Streets Repair Project (PE-86070)
This action recognizes SB1 Gas Tax revenue from the State of California that came in higher than budgeted levels and appropriates funding to increase the transfer to the Capital Improvement Fund. SB1 funding is designated for street improvement projects, so it will be dd d t th St t M i t it l j t (PE 86070)
128,000$ 128,000$
GAS TAX FUND (231) SUBTOTAL 128,000$ 128,000$ HAMILTON AVENUE-PUBLIC BENFIT FUND (235)
Planning and
Development
Services
Investment Income/Grants & Subsidies
This action recognizes higher unit resale revenue and increases the appropriation for Grants and Subsidies to Avenidas within the fund to align budget levels with actual expenditures in FY 2024.
27,200$ 27,200$
HAMILTON AVENUE-PUBLIC BENFIT FUND (235) SUBTOTAL 27,200$ 27,200$ HOUSING IN-LIEU/RESIDENTIAL FUND (233)
Planning and
Development
Services
Transfer to the General Fund
This action reverses the previously approved transfer outlined in Staff Report #2310-2167, from the Housing In-Lieu/Residential Fund to the General Fund. Undoing this transfer will redirect the distribution of $1.5M for the Eden Housing 525 E. Charleston Rd. project through the Housing In-Lieu/Residential Fund instead of the General Fund to align with best practices for disbursing state housing grant funds.
-$ (1,500,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 1,500,000$
HOUSING IN-LIEU/RESIDENTIAL FUND (233) SUBTOTAL -$ -$ LIBRARY IMPACT FEE FUND (212)
Library Transfer to the Capital Improvement Fund for Library Project (LB-21000) This action reduces the transfer of funds to support capital project LB-21000, because work was not done on this project in FY 2024. The transfer of funds for LB-21000 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (382,983)$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 382,983$
LIBRARY IMPACT FEE FUND (212) SUBTOTAL -$ (382,983)$ LOCAL HOUSING TRUST FUND GRANT FUND (252)
Planning and
Development
Services
Transfer to the General Fund
This action reverses the previously approved transfer outlined in Staff Report #2310-2167, from the Local Housing Trust Fund Grant Fund to the General Fund. Undoing this transfer will redirect the distribution of $1.5M for the Eden Housing 525 E. Charleston Rd. project through the Local Housing Trust Fund Grant Fund instead of the General Fund to align with best practices for disbursing state housing grant funds.
-$ (1,500,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 1,500,000$
LOCAL HOUSING TRUST FUND GRANT FUND (252) SUBTOTAL -$ -$ PARKS IMPACT FEE FUND (210)
Community
Services
Transfer to the Capital Improvement Fund for Park Restroom Installation Project (PG-19000) This action reduces the transfer of funds to support capital project PG-19000, because work was not done on this project in FY 2024. The transfer of funds for PG-19000 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (692,570)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 692,570$
PARKS IMPACT FEE FUND (210) SUBTOTAL -$ -$ RESIDENTIAL PARKING PERMIT PROGRAMS FUND (239)
Office of
Transportation
Residential Parking Permit Revenue/Contract Services
This action increases parking permit revenue to recognize additional permits sold above the budgeted estimate to partially offset increased contract services expenses. This action also increases the appropriation for parking enforcement contract services 90,600$ 128,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (37,700)$
RESIDENTIAL PARKING PERMIT PROGRAMS FUND (239) SUBTOTAL 90,600$ 90,600$ STANFORD UNIVERSITY MEDICAL CENTER FUND (260)
Planning and
Development
Services
Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2024 Adopted Budget for a mental health clinician to support the PERT Program. The funds were unspent due to the inability to source and supply a clinician, so the funds will be returned to the SUMC Fund and recommended to be used in the future to support the PERT Program when the County can provide a clinician.
-$ (366,000)$
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 366,000$
STANFORD UNIVERSITY MEDICAL CENTER FUND (260) SUBTOTAL -$ -$ UNIVERSITY AVENUE IN-LIEU PARKING FUND (247)
Planning and
Development
Services
Transfer to the Capital Improvement Fund for Downtown Parking Garage Project (PE-15007) This action reduces the transfer of funds to support capital project PE-15007, because work was not done on this project in FY 2024. The transfer of funds for PE-15007 was reappropriated to FY 2025 in order to align funding with anticipated project expenses. -$ (5,398,600)$
Administrative
Services
Fee Refund for Hamilton and High LLC v City of Palo Alto This action increases funding for General Expenses ($669,300) and Interest Expenses ($58,000) to refund impact fees collected by the City and interest earned on those fees as a result of a legal decision in the case of Hamilton and High LLC v. City of Palo Alto. -$ 727,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 4,671,300$
UNIVERSITY AVENUE IN-LIEU PARKING FUND (247) SUBTOTAL -$ -$ Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
13 Packet Pg. 302 of 566
Revenues Expenses
Department Adjustment Adjustment
DEBT SERVICE & AGENCY TRUST FUNDS
EYERLY TRUST FUND (774)
Administrative
Services
Investment Income/General Expenses
This action recognizes higher investment returns and increases the appropriation for General Expenses within the fund for interest income distribution to designated recipients to align budget levels with actual expenditures in FY 2024.
$9,500 $9,500
EYERLY TRUST FUND (774) SUBTOTAL 9,500$ 9,500$ UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775)
Administrative
Services
Contract Services
This action increases the appropriation for Contract Services within the fund to align budget levels with actual expenditures in FY 2024.
-$ 12,600$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (12,600)$
UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775) SUBTOTAL -$ -$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 BUDGET ATTACHMENT B, EXHIBIT 1
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
14 Packet Pg. 303 of 566
Project
Number Title Revenue Expense Comments
AC-18001 JMZ Renovation $ (92,579) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
AC-24001 Lucie Stern Community Theatre Fire
Curtain
$ (21,169) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
OS-09001 Off-Road Pathway Resurfacing And Repair $ (25,640) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
OS-18000 Foothills Nature Preserve Boronda Lake
Dock Replacement
$ (22,228) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PD-20000 Police Video Recording Systems
Replacement
$ (12,703) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-09003 City Facility Parking Lot Maintenance $ (36,939) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-13014 Street Lights Condition Assessment $ (23,286) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-17010 Civic Center Electrical Upgrade & EV
Charger Installation
$ (23,165) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-19000 City Hall Space Planning $ (18,460) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-20002 City Facilities Assessment $ (2,247) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-22000 San Francisquito Creek Joint Powers
Authority Ongoing Creek Projects
$ (10,860) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24003 Lucie Stern Community Theatre Theatrical
and House Lighting System Replacement
$ (3,060) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-00006 Roofing Replacement $ (6,256) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-16006 Municipal Service Center Lighting,
Mechanical, and Electrical Improvements
$ (628,559) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-93009 Americans With Disabilities Act
Compliance
$ (84,677) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-14001 Peers Park Improvements $ (28,049) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-14002 Cameron Park Improvements $ (29,931) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-17000 Baylands Comprehensive Conservation
Plan
$ (4,562) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-18000 Golf Course Net and Artificial Turf
Replacement
$ (77,267) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM
CAPITAL IMPROVEMENT FUND
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
15 Packet Pg. 304 of 566
Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM PO-11001 Thermoplastic Lane Marking and Striping $ (7,938) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
AS-10000 Capital Improvement Fund Administration $ (1,070,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
FD-24000 Fire Training Facility Replacement $ (4,821) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
LB-21000 Library Automated Material Handling $ (45,257) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
OS-00002 Open Space Lakes And Pond Maintenance $ (8,785) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-12011 Newell Road/San Francisquito Creek
Bridge Replacement
$ (1,666,128) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-15007 New Downtown Parking Garage $ (2,753) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-15020 Civic Center Waterproofing Study and
Repairs
$ (40,217) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-19002 Animal Shelter Renovation $ (266,488) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-01003 Building Systems Improvements $ (43,978) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-02022 Facility Interior Finishes Replacement $ (60) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PF-23000 Electric Charger Infrastructure Installation $ (19,328) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-06001 Athletic Courts Resurfacing $ (50,764) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-14000 Ramos Park Improvements $ (13,692) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-24000 El Camino Park Turf Replacement $ (89,122) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-00026 Safe Routes To School $ (14,289) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-04010 Bicycle and Pedestrian Transportation
Plan Implementation
$ (100,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-05030 Traffic Signal and Intelligent
Transportation Systems
$ (55,394) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-12000 Transportation and Parking Improvements $ (36,243) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-14000 Churchill Avenue Enhanced Bikeway $ (291,071) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
Item 20
Attachment A - FY 2024
Budget Amendments,
Attachment B, Exhibit 1
and 2
Item 20: Staff Report
Pg.
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Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM PL-17001 Railroad Grade Separation and Safety
Improvements
$ (105,846) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-20000 Churchill Avenue/Alma Street Railroad
Crossing Safety Improvements
$ (31,349) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-23000 California Avenue Streetscape Update $ (10,585) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-24000 Meadow Drive and Charleston Road Rail
Grade Separation and Safety
Improvements
$ (585,750) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-24001 Churchill Avenue Rail Grade Separation
and Safety Improvements
$ (398,615) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PO-11000 Sign Reflectivity Upgrade $ (5,292) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PO-12001 Curb and Gutter Repairs $ (20,840) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-18000 New California Avenue Area Parking
Garage
$ 8,873 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-19001 Water, Gas, Wastewater Office Remodel $ 715 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24004 Rinconada Pool Family Changing Room $ 9,342 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24006 Mitchell Park Library Repair $ 8,492 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-09002 Park and Open Space Emergency Repairs $ 67,468 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
AC-18000 Performing Arts Venues Seat Replacement $ 62,956 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
OS-24000 Baylands Nature Preserve Entrance Gate $ 1,050 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-18004 Fire Station 4 Replacement $ 170,752 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24002 Lucie Stern Community Theater
Mechanical Equipment Replacement
$ 7,806 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24005 Homekey Facilities $ 52,078 $ 64,640 $12,562 adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures; $52,078 of additional
expenditures fully offset by revenue.
PG-06003 Benches, Signage, Walkways, Perimeter
Landscaping, and Site Amenities
$ 74,641 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PO-05054 Street Lights Improvements $ 7,076 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
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Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM OS-00001 Open Space Trails and Amenities $ 197,346 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-08001 Rinconada Park Improvements $ 144,477 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-15003 Fire Station 3 Replacement $ 10,177 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-17005 Boulware Park Improvements $ 333,309 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-18015 Robles Park Improvements $ 84,207 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-18016 Civic Center Fire Life Safety Upgrades $ 83,536 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-20000 Foothills Nature Preserve Dam Seepage
Investigation and Repairs
$ 12,538 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-20001 City Bridge Improvements $ 108,919 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-21000 Foothills Nature Preserve Improvements $ 22,018 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24001 Electrification of City Facilities $ 156,397 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-86070 Street Maintenance $ 292,715 $ 1,233,084 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures, partially offset by additional
revenue.
PF-23001 Roth Building Rehabilitation Phase 1 $ 73,784 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-19000 Park Restroom Installation $ 87,518 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PL-15002 Downtown Automated Parking Guidance
Systems, Access Controls & Revenue
Collection Equip.
$ 222,088 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PO-89003 Sidewalk Repairs $ 856,348 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PG-18001 Dog Park Installation and Renovation $ 172,869 Increase to project due to over encumbered funds which will be liquidated in FY 2025.
PL-16002 Parking Management and System
Implementation
$ 79,082 Increase to project due to over encumbered funds which will be liquidated in FY 2025.
PE-13011 Charleston/Arastradero Corridor Project $ 197,401 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-21004 University Avenue Streetscape Update $ 191,993 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
PE-24000 Baylands Boardwalk Piling Repair $ 83,490 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
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Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 CAPITAL IMPROVEMENT PROGRAM PE-15001 New Public Safety Building $ 1,646,643 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.
Total $ 344,793 $ 344,793
AP-21000 Airport Layout Plan $ 59,429 Increase to project due to higher than anticipated expenditures.
Total $ - $ 59,429 EL-89028 Electric Customer Connections $ 2,403,054 Increase to project due to incorrect encumbrance which carried forward to FY 2025.
Error corrected in FY 2025 (Report # 2405-3061).
EL-17007 Facility Relocation for Caltrain
Modernization Project
$ 1,688 Increase to project due to higher than anticipated expenditures.
EL-21001 Foothills Rebuild (Fire Mitigation) $ 102,749 Increase to project due to higher than anticipated expenditures.
Total $ - $ 2,507,491
SD-22002 Trash Capture Device Installation $ 88,014 Increase to project due to higher than anticipated expenditures.
Total $ - $ 88,014 VR-22000 Vehicle Replacement FY 2022 $ 72,773 Increase to project due to higher than anticipated expenditures.
Total $ - $ 72,773 WC-15001 Wastewater Collection
Rehabilitation/Augmentation Project 28
$ 285 Increase to project due to higher than anticipated expenditures.
Total $ - $ 285 WQ-10001 Plant Master Plan $ 569,941 Increase to project due to early encumbrance of future years of a multi-year contract.
Total $ - $ 569,941 WS-14001 Water Main Replacement - Project 28 $ 59,331 Increase to project due to higher than anticipated expenditures.
WS-80015 Water Meters $ 701,257 Increase to project due to the need to purchase meters in order to retain pricing.
WS-80013 Water System Customer Connections $ 127,679 Increase to project due to higher than anticipated expenditures.
Total $ - $ 888,267 TOTAL CIP ADJUSTMENTS $ 344,793 $ 4,471,564
WATER FUND
WASTEWATER COLLECTION FUND
VEHICLE FUND
ELECTRIC FUND
STORMWATER MANAGEMENT FUND
WASTEWATER TREATMENT FUND
AIRPORT FUND
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City Council
Staff Report
From: City Auditor
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: December 16, 2024
Report #:2411-3826
TITLE
Approval of Audit Reports and Task Orders: 1) ADA Compliance Audit and Recruitment & Succession Planning Audit; 2) Annual Risk Assessment and 2025 Audit Plan; 3) Task Order Execution for Remaining FY25 Tasks; and 4) Realignment of FY 2024 and FY 2025 Task Order Budgets with No Fiscal Impact as Reviewed by Policy & Services Committee; CEQA: Not A Project
RECOMMENDATION
The Office of the City Auditor recommends City Council:
1. Approve the following audit reports:
a. ADA Compliance Audit as recommended by the Policy & Services Committee on November 6 20241
b. Recruitment & Succession Planning Audit to be reviewed by the Policy & Services Committee on December 10, 20242
c. Approve the FY 2024 annual risk assessment and 2025 audit plan to be reviewed by the Policy & Services Committee on December 10, 20243
2. Approve execution of the following task orders:
a. Approve remaining FY2025 Task orders Attachment A (to be issued in a supplemental report on December 12, 2024): i.) FY25 Risk Assessment, ii)FY25 Annual Audit Plan –the development of the audit plan will happen in FY2025 but will result in the FY2026 Annual Audit Plan which will commence July 1, 2026. 1 Policy & Services Committee, November 6, 2024, Agenda Item #2, https://portal.laserfiche.com/Portal/DocView.aspx?id=106161&repo=r-704298fc&searchid=0759e1e3-bc8f-4010- 8f4f-d598698c0cc5
2 Policy & Services Committee, December 10, 2024, Agenda Item #4, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6263&meetingTemplateType=2&comp iledMeetingDocumentId=12450
3 Policy & Services Committee, December 10, 2024, Agenda Item #5, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6663&meetingTemplateType=2&comp iledMeetingDocumentId=12450
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b. Amend FY2024 and FY2025 Audit Office operating budgets with no fiscal impact to better align with tasks performed to be reviewed by the Policy & Services Committee on December 10, 20244
i. Amend FY2024 Task 4: Execute the Annual Audit Plan to realign the authorized budget with a net zero impact overall: Task 4.22: ADA Compliance Audit reduced by $11,000, Task 4.23: Recruitment & Succession Planning Audit increased by $3,500, Task 4.25: Emergency Preparedness/Wildfire Audit Increased by $2,000, Task 4.26: Utility Billing increased by $3,000, and Task 4.28: Dispatch Center Assessment increased by $2,500.
ii. Amend FY2025 budget to realign the authorized budget with a net zero impact overall: Task 1: Citywide Risk Assessment reduced by $40,000, and Task 5:
Preparation of Quarterly Reports, Annual Status Reports, Provision of the City Hotline and Other Ongoing Administrative Functions increased by $40,000.
BACKGROUND
In accordance with the City’s agreement with Baker Tilly, services to conduct recurring/annual activities each year are required including:
•Task 1: Citywide Risk Assessment
•Task 2: Preparation of Annual Audit Plan
•Task 3: Selection of External Financial Auditor and Annual Audit Coordination Various audit specific task orders are approved annually in alignment with the Annual Council Approved Audit Work plan. Task Orders approved by the Council are executed by the Policy & Services Committee Chair as the Project Manager for the Baker Tilly contract as stipulated in the contract terms.
ANALYSIS
The Office of the City Auditor is seeking City Council approval for various audit reports and task order changes either approved by or scheduled to be reviewed by the Policy & Services Committee.
Completed Audit Reports Reviewed by Policy & Services Committee ADA Compliance Audit Report5: The objective of the ADA Compliance audit was to determine if the City has made improvements to facilities, programs and services in accordance with the ADA Transition Plan Update (Plan Update), the purpose of which is to ensure compliance with the Americans with Disabilities Act (ADA).
4 Policy & Services Committee, December 10, 2024, Agenda Item #3, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6541&meetingTemplateType=2&comp iledMeetingDocumentId=12450
5 Policy & Services Committee, November 6, 2024, Agenda Item #2, https://portal.laserfiche.com/Portal/DocView.aspx?id=106161&repo=r-704298fc&searchid=0759e1e3-bc8f-4010- 8f4f-d598698c0cc5
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The ADA Transition Plan Update was adopted by Palo Alto in 2021 and focuses on making improvements to physical barriers in existing City facilities and rights-of-way. The Plan Update presents a vision to improve accessibility in Palo Alto over the next 60 years. Audit findings and recommendations focus on three areas of improvement:
•While the City has made progress on the ADA Transition Plan Update, efforts were hampered by the pandemic and reductions in staffing and lack adequate tracking and monitoring;
•ADA requests and grievances made by the public have not been consistently tracked and monitored; and
•While the City implemented nearly two-thirds of ADA self-assessment recommendations, there is no formal oversight for completing this work including determining whether recommendations should be implemented and/or an appropriate timeframe for completion.
The Policy & Services Committee unanimously recommends Council approval of this audit.
Recruitment & Succession Planning Audit Report6: The objectives of the Recruitment and Succession Planning audit were to determine 1) the efficiency and effectiveness of the recruitment and hiring process; and 2) whether a formal succession plan and related policies and procedures are in place.
In May 2024, a progress report on the Recruitment Strategic Plan with 31 initiatives related to recruitment and hiring process improvements across four categories was issued. Also in May 2024, the City implemented a pilot Workforce Career Advancement & Continuity Planning program based on state guidance issued by Cal-ICMA. Audit findings and recommendations focus on three areas of improvement:
• While the City has made progress implementing recommendations from the Municipal Resource Group Recruitment Strategic Plan and seen improvements in hiring and recruitment metrics, oversight and monitoring of implementation progress can be strengthened.
• Due to developments facilitated by the Recruitment Strategic Plan, the City’s policies and procedures no longer reflect current recruitment and hiring practices. • The City has undertaken several steps to enhance succession planning efforts but lacks a formalized succession planning program, policies and procedures.
The Policy & Services Committee will review this on December 10, 2024; a supplemental report will be issued following the Committee’s discussion.
Annual Risk Assessment and 2025 Audit Plan: Baker Tilly, serving as the City Auditor, interviewed City Council members and executive leadership across all departments within the City regarding risks to the City and individual departments. The FY2025 Audit Plan was prepared based on the results of the FY2023 risk assessment survey conducted in the fall of 2023 and the 6 Policy & Services Committee, December 10, 2024, Agenda Item #4, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6263&meetingTemplateType=2&comp iledMeetingDocumentId=12450
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FY2024 risk assessment interviews conducted in summer of 2024 and informed by current business factors such as other planned assessments and studies to ensure efficient allocation of City resources.
The Policy & Services Committee will review this on December 10, 2024; a supplemental report will be issued following the Committee’s discussion.
Approve Execution of Task Orders
Remaining FY 2025 Task Orders: Work for two FY2025 Task Orders has not been approved or started yet. This work will be performed from January 2025 through June 2025. No change in budget is requested, this execution will enable work to begin on these tasks:
•FY2025 Task 1: Citywide Risk Assessment - Beginning with year 1 and continuing at a minimum of every other year thereafter, prepare a citywide risk assessment for review by the City Manager and appropriate City Council Committee(s), and approval by the City Council. The risk assessment will inform and contribute to the development of the City’s Annual Audit Plan.
•FY2025 Task 2: Preparation of Annual Audit Plan: Prepare an annual audit plan for review by the City Manager and appropriate City Council Committee(s), and approval by the City Council, that identifies preliminary audit objectives, the schedule for each audit, and the estimated not to exceed resources and costs for each audit. The City Auditor shall consult with the City Attorney as necessary when developing audit plans. The Annual Audit Plan will be largely based on the Risk Assessment outlined in Task 1.
The final task orders will be issued in a supplemental report December 12, 2024.
Amend FY2024 and FY2025 Audit Office operating budgets with no fiscal impacts: Work on the FY2024 Annual Audit Plan began in June 2024 and will largely be completed by the end of December 2024 with some audits being reported in the Spring of 2025. These reports include:
ADA Compliance (4.22), Recruitment & Succession Planning (4.23), Grant Management (4.24), Emergency Preparedness (4.25), Utility Billing (4.26), PCI DSS (4.27), and Dispatch Center Assessment (4.28). While the City Auditor endeavors to estimate the necessary audit hours and budget for each audit in the Annual Audit Plan, audits can sometimes take more or less time than estimated. The following net zero adjustments are recommended to align with actual activities.
•Task 4.22 ADA Compliance Audit: reduce budget by $11,000 •Task 4.23 Recruitment & Succession Planning: increase budget by $3,500 •Task 4.25 Emergency Preparedness/Wildfire Audit: increased budget by $2,000 •Task 4.26 Utility Billing: increase budget by $3,000
•Task 4.28: Dispatch Center Assessment increase budget by $2,500 For FY 2025, the Baker Tilly Contract specifies a budget of $55,000 to conduct a risk assessment which would culminate in the FY26 Annual Audit Plan. Due to the delayed start of the FY24 and FY25 Annual Audit Plans, rather than conduct another full risk assessment so close to the Item 21
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current effort, the City Auditor proposes to conduct a brief risk assessment survey to supplement the FY26 Audit Plan in early CY 2025. This survey is estimated to cost $15,000. The remaining risk assessment funds of $40,000 will be added to FY 2025 Task 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline and Other Ongoing Office Administrative Functions. The budget for Task 5 has been insufficient each year of the City’s contract with Baker Tilly and the FY 2025 budget is close to being fully expended. There will be no change in the overall FY 2025 budget, but this action will align the budget with the actual costs of these respective tasks.
The Policy & Services Committee will review this on December 10, 2024; a supplemental report will be issued following the Committee’s discussion.
FISCAL/RESOURCE IMPACT
The timeline and resource needs for implementation of management’s corrective action plans for the ADA Compliance Audit and Recruitment & Succession Planning Audit are identified by management within the audit reports.
The execution of the task orders remains within both contractual authorization as well as annual budget appropriations.
STAKEHOLDER ENGAGEMENT
These items have been brought forward through the Policy & Services Committee and coordinated with internal stakeholders.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A - FY 2025 Task Orders: Task 1 FY25 Risk Assessment, Task 2 FY25 Annual Audit Plan (to be issued in a supplemental report on December 12, 2024) Note: Documents reviewed by the Policy & Services Committee and seeking approval are linked by reference for brevity.
APPROVED BY:
Kate Murdock, City Auditor
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 16, 2024
Report #:2411-3758
TITLE
FIRST READING: Adoption of a Temporary Ordinance Amending Section 18.42.110 (Wireless Communications Facilities) of Title 18 (Zoning) to Require Architectural Review Board Review for Tier 2 and Tier 3 Wireless Communications Facilities in the Public Rights-of-Way and Repeal the Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights-of-Way. CEQA Status: Exempt Pursuant to CEQA Guidelines Sections 15301, 15302, and 15303.
RECOMMENDATION
Adopt a Temporary Ordinance amending Section 18.42.110 (Wireless Communications Facilities) of Title 18 (Zoning) to require Architectural Review Board (ARB) review for Tier 2 and Tier 3 Wireless Communications Facilities in the public rights-of-way to and repeal the Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights-of-Way.
EXECUTIVE SUMMARY
The proposed temporary ordinance responds to City Council direction from October 21, 2024, to amend Section 18.42.110 of the Zoning Code, reinstating Architectural Review Board (ARB) review for Tier 2 and Tier 3 Wireless Communications Facilities (WCF) in public rights-of-way and repealing objective aesthetic standards adopted in response to the FCC’s 2018 Small Cell Order. This ordinance complies with Federal and State requirements and shifts review of certain WCF applications from a more expedient, objectives-based, review to a subjective, discretionary review to consider aesthetics and neighborhood context. This change is expected to increase application processing times and staff workload, potentially impacting at times agenda management for the ARB and City Council depending on the number of qualifying applications the City receives. The ordinance, set to expire in two years, will allow for additional input and review by the Planning and Transportation Commission (PTC) and other stakeholders to determine long-term approaches to WCF regulation.
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BACKGROUND
On September 26, 2018, the Federal Communications Commission (FCC) adopted a Declaratory Ruling and Third Report and Order (FCC 18-133), known as the “Small Cell Order,” directing, among other things, that local aesthetic regulation of Small Wireless Facilities are not preempted by Federal law if they are, “(1) reasonable, (2) no more burdensome than those applied to other types of infrastructure deployments, and (3) objective and published in advance.” (FCC 18-133, ¶ 86) These terms were further defined and clarified in this and following orders issued by the FCC.
In response to the Small Cell Order, on April 15, 2019, the City Council adopted its first objective standards for wireless communications facilities (WCFs) in the public rights-of-way in Resolution 9825, along with a first reading updating the zoning code to incorporate those standards (Ordinance 5465, adopted May 13, 2019). These added to the required findings and Generally Applicable Development Standards already in effect for all WCFs in Palo Alto Municipal Code (PAMC) Section 18.42.110(i) (Attachment B). The ordinance revisions provided that certain categories of WCFs would be no longer be subject to site-specific review and approval by the ARB under PAMC Section 18.76.020, and installations in the public rights-of-way (PROW) would instead be required to comply with the Council-adopted objective standards. Additionally, the initial review and approval of all types of WCF applications would be performed by the Director of Planning & Development. In the April 15, 2019 Council Staff Report adopting the objective standards, staff noted policy considerations supporting this shift:
“Although the City’s effort to draft these standards is driven largely by need to comply with the September 2018 Order, the adoption of objective standards also represents an opportunity for the City. First, the standards allow the City to proactively define the types of WCF installations it deems appropriate in the PROW, rather than simply reacting to designs proposed by an applicant. Standards would also promote greater uniformity of WCF designs throughout the City. While carriers could still apply for alternative designs, they would face the difficult task of showing that a network is not feasible using the City’s standards or that the strict application of the standards would otherwise violate federal law. Second, adoption of objective standards would allow for more efficient review and help to alleviate the significant burden on staff resources and ARB agendas created by the influx of WCF applications. In the past, the City has struggled to schedule multi-departmental reviews, ARB hearings, and a potential City Council appeal within a 150-day shot clock. Even in the absence of the new 60-day shot clock for “small wireless facilities,” the City would likely need to explore ways to streamline its review.”1
After several iterations and clarifications of the objective standards, on December 16, 2019, the City Council adopted the current objective standards in Resolution 9873 amending and consolidating objective aesthetic, noise, and related standards for WCFs on streetlights and 1 Staff Report, dated April 15, 2019: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/9959.pdf Item 22
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wood utility poles in the public rights-of-way. Further details of the steps of this process are available online.2
As of 2019, the Small Cell Order was being challenged in a lawsuit brought by numerous municipalities against the FCC—a lawsuit the City Council supported. Because of this legal challenge, Ordinance 5465 provided for the possibility that some FCC regulations might be struck down by noting, “[i]f the City Council repeals all objective standards, an application [for a Tier 2 or 3 WCF] shall not be granted unless, in addition to the other requirements of this section, all of the architectural review findings in Section 18.76.020(d) can be made.” (See PAMC 18.42.110 (g) and (h))
On August 12, 2020, the Ninth Circuit issued its decision in City of Portland v. Federal Communications Commission, 969 F.3d 1020, ruling that the Small Cell Order’s requirement that local regulations must be “objective” and not be “more burdensome than regulations imposed on functionally equivalent services” exceeded the FCC’s authority and “must be vacated.” (A link to the Ninth Circuit’s ruling was included in the Colleagues’ Memo of October 21, 2024.3) However, the Court upheld the FCC’s requirements that local standards be “reasonable” and “published in advance,” and upheld the FCC’s definition of “reasonable” to mean “’technically feasible and reasonably directed‘ at remedying aesthetic harms.” (Id., at 1041-43, citing FCC 18-133 at ¶ 86-87).
On October 21, 2024, City Council received and discussed a Colleague’s Memo recommending that the Council repeal the existing objective-only aesthetic standards for the siting and design of WCFs in the public rights-of-way to restore subjective aesthetic standards under the City’s architectural review findings, as well as requiring review of Tier 2 and 3 applications in the public rights-of-way by the ARB at public hearings prior to a decision by the Director of Planning and Development Services. The proposed temporary ordinance incorporates these requested procedural revisions to the City’s WCF ordinance.
ANALYSIS
As directed by City Council on October 21, 2024, staff has prepared an ordinance (Attachment A) to modify the WCF permit review process for Tier 2 and Tier 3 facilities in the public right-of- way, to repeal the Objective Aesthetic, Noise, and Related Standards and to require review of such applications by the ARB. Below, staff has addressed Council’s requests for further information on what the WCF review process and standards would be if this ordinance change is adopted. Because the Council is proposing these modifications on its own initiative and the PTC has yet to conduct its review, the proposed modifications are temporary and automatically expire two years from the effective date of the ordinance. Planning staff will present the 2 City of Palo Alto Website (Wireless Communication Facilities):
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Ordinances- Maps-Guidelines-Standards/Wireless-Communication-Facilities 3 https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/misc/18-72689.pdf Item 22
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proposed modifications to the PTC for review and further modifications and/or recommendations to the City Council during this interim period.
Explanation of Tiers
The existing wireless ordinance classifies project applications into three “Tiers”, which align with FCC definitions and regulations. Each project type has its own application checklist maintained by Planning and Development Services, and is subject to the City’s WCF ordinance conditions of approval, along with any other applicable findings (such as the development standards, objective standards, or architectural review findings). •“Tier 1” projects are for any “eligible facilities requests”: requests to replace, co-locate, or remove existing WCF components where the modification falls under the FCC’s streamlined review requirements. Such projects will continue to be reviewed by the Director of Planning and Development, since Federal law requires approval as long as the applicant meets the criteria (See PAMC Section 18.42.110(f)). •“Tier 2” projects include any requests to modify existing facilities that involve a “substantial change” in the physical dimensions of the facility’s components, or collocations of new equipment that are not eligible under the Tier 1 process for any other reason (See PAMC Section 18.42.110(g)).
•“Tier 3” projects are for any new sitings of WCFs (including collocations that are not eligible for Tier 1 or 2 review), and must also meet the City’s findings for a conditional use permit (See PAMC Section 18.42.110(h)).
The City’s objective standards for the public rights-of-way apply only to applications for WCFs installed in the public right-of-way, or PROW. The City also receives applications to modify facilities on private property, which are reviewed under the other ordinance conditions and findings depending on WCF type; these will not be subject to ARB review.
The number and complexity of the projects received each year can vary. On average the City has received approximately 25 applications per year over the last 25 years (617 applications total since the beginning of 2000); 29 of these applications were received since the beginning of 2024. But complexity of these applications can vary significantly depending on a number of factors including but not limited to: private property vs. public right-of-way, number of antennae proposed, and Tier level. To provide more detailed breakdown of the applications received staff would require additional time to analyze the records.
Standards For Review
If adopted, the proposed ordinance would repeal the Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights-of-Way on Streetlight Poles and Wood Utility Poles, as adopted on December 16, 2019. In their place, the review of Tier 2 and 3 Wireless Communication Facilities would be based on standard findings for architectural Item 22
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review and, for Tier 3 projects, conditional use permit findings. All projects would continue to be subject to the Conditions of Approval in PAMC Section 18.42.110 (j) and the Generally Applicable Development Standards in PAMC Section 18.42.110 (i). Attachment B provides the full text of the Municipal Code standards that may apply depending on project Tier.
The colleagues’ memo further proposed requiring the City to hire a consultant to review an application’s technical feasibility, however, this was not included in the proposed ordinance since it is preempted by Federal law. The Ninth Circuit's decision in City of Portland invalidated the FCC requirement that all aesthetic regulations be "objective" but it does not open the door to additional City regulations on technical feasibility or functionality because such regulations are not "reasonably directed to avoiding or remedying the intangible public harm of unsightly or out-of-character deployments." (FCC 18-33 at ¶ 87; See 969 F.3d 1020, 1042.) A return to a subjective review process may impact the quality of applications received, since there will be less guidance for project applicants on the City’s standards for review. It would also increase the likelihood of applicant appeals or requests for judicial review if the City does not approve a project. The ARB may find the objective standards remain a helpful reference for making their findings in some cases, even if they are repealed as required findings for all PROW facilities.
State and Federal Required Application Review Timelines The proposed ordinance implements the City Council request to revert the WCF review process back to what was in place in prior to 2019. However, since that time there have been new State and Federal laws that provided additional restrictions on the City’s process, including prescribed timelines for review. These timelines—referred to as “shot clocks” —limit the review time to 60, 90, or 150 days depending on the type of project proposed. Initial application review for completeness is also limited, either 10 days or 30 days depending on project type.
After that, the City cannot request any additional information from applicants that was not identified in the first review for completion. Because of the ARB requirement for public noticing, staff report preparation, and availability of two public ARB hearings a month, the initial review/incompleteness letter for new applications in the PROW will need to be produced prior to review by ARB, and will therefore not include their comments.
Past experience shows that even with objective standards and staff-level process, meeting a 60 or 90-day timeline has sometimes required a tolling agreement with the project applicant.
Further revisions in State and Federal law since 2019 include “deemed approved” remedies for all project types, in which projects without a formal decision by the shot-clock deadline are approved by operation of law in accordance with the initial application (See Cal. Gov. Code Section 65964.1, Title 47 Code of Fed. Regs. Section 1.6100(c)(4)). As a result, applicants have reduced incentive to enter a tolling agreement with the City. Since tolling agreements cannot be mandated or relied upon for application processing, staff will have to presumptively process applications based on established shot clock timeframes. Adding one or more public hearings Item 22
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before the ARB and potentially a Council appeal is expected to severely impact the City’s ability to comply with these legal requirements and likely require final decision made by the City Council at a noticed public hearing.
FISCAL/RESOURCE IMPACT
Modifying the design standards and review process poses additional resource impacts.
Potentially the most significant impact would be to the ARB and City Council agenda management. Switching from the current process for applications in the public rights-of-way, in which the Planning and Development Services Director reviews the project’s compliance with the objective standards and applies more subjective standards to any requests for exceptions, to a fully discretionary review including a hearing by the ARB will increase the amount of time it takes to process those applications (as discussed above in regards to mandatory “shot clock” application review timelines). Staff would need to anticipate potential appeals on every such project and schedule final action hearings prior to the ARB review hearing, in order to meet the mandated shot clock requirements. While the colleagues’ memo authors suggest an extension for application review or appeals can be granted if agreed upon by the parties, this approach cannot be mandated or relied upon for application processing. Applicants are unlikely to choose this approach when presently, State or Federal law (or both) provides “deemed granted” approvals for all types of wireless projects if the City fails to approve or deny it within the limited shot clock period. In short, wireless communications facility applications are expected to require time on the Council’s agenda to make final subjective determinations on any appeal from the ARB’s project decision. This may impact the scheduling of other City Council priority projects or other City business.
In addition, changing the standards and review process has the potential to impact staff resources from Planning, Utilities, Public Works, Urban Forestry, and the City Attorney’s Office.
These departments participate in the application review process and may need to be available for ARB and City Council meetings. While staff can engage professional service agencies to respond to application processing and review, administrative and overhead staff support will be required to review work products, reports, and to schedule meetings. Initial training on the review process and legal framework for wireless project findings would also be required for ARB members, for work currently performed and coordinated by Planning staff. Public meetings before the ARB may require attendance from all departments contributing to wireless project review. The extent of impact depends on the number of qualifying applications submitted, which is not a variable the City controls.
Finally, the Municipal Code requires that changes to zoning regulations initiated by the Council first be reviewed by the PTC. Therefore, additional resources are anticipated from various City departments to prepare a comprehensive review of the Wireless Communications Facilities ordinance for the PTC’s consideration.
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STAKEHOLDER ENGAGEMENT
The City Council discussed its intention to modify the WCF ordinance on October 21, 2024.
ENVIRONMENTAL REVIEW
The recommended action is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Sections 15301, 15302, and 15303, since the regulation changes would affect existing facilities, replacement or reconstruction of existing structures or facilities, or new construction or conversion of small structures.
ATTACHMENTS
Attachment A: Proposed Ordinance
Attachment B: WCF review standards (Municipal Code excerpts) Attachment C: WCF Objective Standards (proposed for repeal) APPROVED BY:
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Chapter 18.42 (Standards for Special Uses) of the Palo Alto Municipal Code on a Temporary Basis to Modify the Procedure and Standards Governing the Review of Wireless Communications Facilities Applications; and repealing Resolution 9873 (Amending Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights of Way)
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The City Council has adopted a Wireless Communication Facilities (WCF) code to regulate the various health, welfare, and safety impacts presented by the proliferation of WCFs and to balance these impacts with the interests of consumers in receiving the benefits of wireless technologies.
B. Federal and state law place significant limits on the City’s exercise of local control over WCF matters. On September 26, 2018, the Federal Communications Commission adopted a Declaratory Ruling and Third Report and Order (WT Docket No. 1779; WC Docket No. 1784; FCC 18-133), further limiting local control.
C. On August 12, 2020, in a decision in the City of Portland v. FCC, the United States Court of Appeals for the Ninth Circuit invalidated certain elements of the FCC’s Order 18 -133 restricting local aesthetic regulations of WCFs. Specifically, the Court struck down the requirements that local standards be “objective” and “no more burdensome” than those applied to similar types of infrastructure installations. Now, a city’s aesthetic regulations for small wireless facilities will not be preempted by federal law if they are: (1) reasonable (technically feasibl e and reasonably directed at remedying aesthetic harms ) and (2) published in advance.
D. As a result of the Portland decision, the City Council wishes to modify the WCF ordinance provisions relating to the permit review process for Tier 2 and Tier 3 Facilities in the public right-of-way, to repeal references to the Objective Aesthetic, Noise, and Related Standards and to require review of such applications by the Architectural Review Board (ARB) under the City’s architectural review findings.
E. Section 18.80.090 of the Palo Alto Municipal Code authorizes the City Council to change or suspend operation of the Zoning Code for temporary periods without review by the Planning and Transportation Commission when in the determination of the council such suspension or change is necessary for the public health, safety or welfare.
SECTION 2. Resolution 9873, Amending Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights of Way, adopted December 16, 2019, is hereby repealed. For the avoidance of doubt, by this action Council repeals all prior versions of these objective standards, including Resolution 9825 (April 19, 2019), Resolution 9847 (June 17, 2019), and Resolution 9855 (August 12, 2019).
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SECTION 3. Section 18.42.110 Wireless Communication Facilities is hereby amended to read as follows (additions in underline format and deletions in strikethrough format):
18.42.110 Wireless Communication Facilities
(a) Purpose and Interpretation
The purpose of this section is two-fold: (A) to implement within the jurisdictional boundaries of the city the applicable zoning, land use and other laws, rules, regulations and policies and procedures applicable to siting applications filed with the city by wireless communications facilities infrastructure owners and operators and wireless communications service providers, which seek to install or attach their facilities at locations in Palo Alto; and (B) to accommodate new wireless technologies and continued improvements to existing wireless communications facilities while minimizing their adverse visual and structural health and safety impacts.
Consistent with that purpose, the provisions of this section are to be construed in a manner that is consistent with (1) the interest of consumers in receiving the benefits of the deployment of ultra-high-speed and -capacity broadband wireless communication facilities technology and innovations and the delivery of ultra-high-speed and -capacity broadband wireless communications facilities services, (2) the interest in safeguarding the environment, preserving historic properties, and addressing aesthetics and other local values, and (3) the interest in promoting the public health, safety and welfare in Palo Alto. Although this section implements and references provisions of preemptive state and federal law, nothing in this section shall be interpreted to create an independent source of the rights provided an applicant by such state or federal law.
A wireless communications facility is permitted to be sited in Palo Alto subject to applicable requirements imposed by this chapter. These processes are intended to permit wireless communications facilities that blend with their existing surroundings and do not negatively impact the environment, historic properties, or public safety. The procedures prescribed by this section are tailored to the type of wireless communication facility that is sought. Building- mounted wireless communications facilities and collocation of facilities are preferred and encouraged, subject to all other provisions of this section. (b) Definitions
The following abbreviations, phrases, terms and words shall have the meanings assigned in this section or, as appropriate, in Section 18.04.030 and Section 1.04.050 of the Palo Alto Municipal Code, as may be amended from time to time, unless the context indicates otherwise.
Words that are not defined in this section or other chapters or sections of the Palo Alto Municipal Code shall have the meanings as set forth in Chapter 6 of Title 47 of the United States Code, Part 1 of Title 47 of the Code of Federal Regulations, and, if not defined therein, their common and ordinary meaning.
(1) "Antenna" means that part of a wireless communications facility designed to radiate or receive radio frequency signals or electromagnetic waves for the provision of personal wireless services, as defined in 42 U.S.C. § 332(c)(7)(C)(i). This definition does not include antennas designed for amateur or household use.
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(2) "Associated equipment" means any and all on-site equipment, including, without limitation, back-up generators and power supply units, cabinets, coaxial and fiber optic cables, connections, shelters, radio transceivers, regular power supply units, and wiring, to which a wireless antenna is attached in order to facilitate mobile broadband service and personal wireless service delivered on mobile broadband devices. (3) "Base Station" means the same as defined by the FCC at 47 C.F.R. § 1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: a structure or equipment at a fixed location that enables FCC-licensed or authorized wireless communications between user equipment and a communications network. The term does not encompass a tower as defined herein or any equipment associated with a tower. Base Station includes, without limitation:
A. Equipment associated with wireless communications services such as private, broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services such as microwave backhaul.
B. Radio transceivers, antennas, coaxial or fiber-optic cable, regular and backup power supplies, and comparable equipment, regardless of technological configuration (including Distributed Antenna Systems ("DAS") and small-cell networks).
C. Any structure other than a tower that, at the time the relevant application is filed with the city under this section, supports or houses equipment described in paragraphs (i)-(ii) above and has been previously reviewed and approved by the city. (4) "Collocation" means the same as defined in valid regulations promulgated by the FCC, including 47 C.F.R. §§ 1.6002(g) or 1.6100(b), as those sections may be amended from time to time. For the purpose of convenience only, the definition provided in 47 C.F.R. § 1.6100(b), for eligible facilities requests, is stated as follows: the mounting or installation of transmission equipment on an eligible support structure for the purpose of transmitting and/or receiving radio frequency signals for communications purposes.
(5) "Eligible Facilities Request" means the same as defined by the FCC at 47 C.F.R. §
1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: any request for modification of an existing tower or base station that, within the meaning of the Spectrum Act, does not substantially change the physical dimensions of that tower or base station, and involves (a) the collocation of new transmission equipment, (b) the removal of transmission equipment, or (c) the replacement of transmission equipment.
(6) "Eligible Support Structure" means the same as defined by the FCC at 47 C.F.R. §
1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: any existing tower or base station that exists at the time the application is filed with the city.
(7) "Existing" means the same as defined by the FCC at 47 C.F.R. § 1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: a constructed tower or base station is existing for purposes of an eligible facilities request if has been previously reviewed and approved under the applicable city zoning or siting Item 22
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process, or under another applicable state or local regulatory review process, provided that a tower that has not been reviewed and approved because it was not in a zoned area when it was built, but was lawfully constructed, is "Existing" for purposes of this definition. (8) "FCC" means the Federal Communications Commission or successor agency. (9) "Project" means a WCF to be located in Palo Alto for which a permit is required by the city.
(10) "RF" means radio frequency on the radio spectrum. (11) "Spectrum Act" means Section 6409(a) of the Middle Class Tax Relief Act and Job Creation Act of 2012, 47 U.S.C. § 1455(a) (providing, in part, "… a State or local government may not deny, and shall approve, any Eligible Facilities Request for a modification of any existing wireless Tower or Base Station that does not substantially change the physical dimensions of such Tower or Base Station.").
(12) "Small Wireless Facility" means the same as defined in any valid regulations adopted by the FCC. For purposes of convenience only, the definition provided at 47 C.F.R. Section
1.1312(e)(2) is stated here as follows: a facility that meets each of the following conditions:
A. The structure on which antenna facilities are mounted:
i. Is 50 feet or less in height, or
ii. Is no more than 10 percent taller than other adjacent structures, or iii. Is not extended to a height of more than 10 percent above its preexisting height as a result of the collocation of new antenna facilities; and B. Each antenna (excluding associated antenna equipment) is no more than three cubic feet in volume; and
C. All antenna equipment associated with the facility (excluding antennas) are cumulatively no more than 28 cubic feet in volume; and
D. The facility does not require antenna structure registration under 47 C.F.R. Section 17; and
E. The facility is not located on Tribal lands, as defined under 36 C.F.R. § 800.16(x); and F. The facility does not result in human exposure to radiofrequency radiation in excess of the applicable safety standards specified by the FCC.
(13) "Substantially Changes" means the same as defined by the FCC at 47 C.F.R. §
1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: in the context of an eligible support structure, a modification of an existing tower or base station where any of the following criteria is met:
A. For a tower not located in the public rights-of-way:
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i. The height of the tower is increased by (I) more than ten (10) percent, or (II) by the height of one additional antenna array with separation from the nearest existing antenna not to exceed twenty (20) feet, whichever is greater; or
ii. There is added an appurtenance to the body of the tower that would protrude from the edge of the tower by (I) more than twenty (20) feet, or (II) more than the width of the tower at the level of the appurtenance, whichever is greater.
B. For a tower located in the public rights-of-way and for all base stations:
i. The height of the tower or base station is increased by more than ten (10) percent or ten (10) feet, whichever is greater; or
ii. There is added an appurtenance to the body of that structure that would protrude from the edge of that structure by more than six (6) feet; or iii. It involves the installation of ground cabinets that are more than ten (10) percent larger in height or overall volume than any other ground cabinets associated with the structure; or
iv. It involves the installation of any new equipment cabinets on the ground if there is no pre-existing ground cabinet associated with that structure.
C. For any eligible support structure:
i. It involves the installation of more than the standard number of new equipment cabinets for the technology involved, but not to exceed four (4) cabinets; or ii. There is entailed in the proposed modification any excavation or deployment outside of the current site of the tower or base station; or
iii. The proposed modification would cause the concealment/camouflage elements of the tower or base station to be defeated; or
iv. The proposed modification would not comply with the conditions associated with the prior siting approval of construction or modification of the tower or base station, unless the non-compliance is due to an increase in height, increase in width, addition of cabinets, or new excavation that does not exceed the corresponding thresholds in this section.
D. To measure changes in height for the purposes of this section, the baseline is:
i. For deployments that are or will be separated horizontally, measured from the original support structure;
ii. For all others, measured from the dimensions of the tower or base station, inclusive of originally approved appurtenances and any modifications that were approved by the city prior to February 22, 2012.
E. To measure changes for the purposes of this section, the baseline is the dimensions that were approved by the city prior to February 22, 2012.
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(14) "Tower" means any structure built for the sole or primary purpose of supporting any FCC-licensed or -authorized antenna, including any structure that is constructed for wireless communications service. This term does not include a base station. (15) "Transmission Equipment" means the same as defined by the FCC at 47 C.F.R. §
1.6100(b), as it may be amended from time to time. For the purpose of convenience only, this definition is stated as follows: equipment that facilitates transmission of any FCC-licensed or authorized wireless communication service.
(16) "Wireless Communications Facility" or "WCF" means any antenna, associated equipment, base station, small wireless facility, tower, and/or transmission equipment located in Palo Alto, but does not include:
A. A facility that qualifies as an amateur station as defined by the FCC, 47 C.F.R. Part 97, or its successor regulation;
B. An antenna facility that is subject to the FCC Over-The-Air-Receiving Devices rule, 47 C.F.R. Section 1.4000, or any successor regulation;
C. Portable radios and devices including, but not limited to, hand-held, vehicular, or other portable receivers, transmitters or transceivers, cellular phones, CB radios, emergency services radio;
D. Mobile services providing public information coverage of news events of a temporary nature;
E. Telecommunications facilities owned and operated by any government agency or emergency medical care provider.
(c) Types of WCF Permits Required
(1) A Tier 1 WCF Permit shall be required for an eligible facilities request, as defined in this section.
(2) A Tier 2 WCF Permit shall be required for:
A. Any modification of an eligible support structure, including the collocation of new equipment, that substantially changes the physical dimensions of the eligible support structure on which it is mounted; or
B. Any collocation of a small wireless facility; or
C. Any collocation not eligible for a Tier 1 WCF Permit. (3) A Tier 3 WCF Permit shall be required for the siting of any WCF, including a small wireless facility, that is not a collocation subject to a Tier 1 or 2 WCF Permit. An application shall not require a Tier 3 WCF Permit solely because it proposes the replacement in-place of an existing streetlight or wood utility pole.
(d) WCF Application Requirements
All applications for a WCF Permit shall include the following items:
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(1) Any applicant for a WCF Permit shall participate in an intake meeting with the Planning and Community Environment Department when filing an application; (2) The applicant must specify in writing whether the applicant believes the application is for an eligible facilities request subject to the Spectrum Act, and if so, provide a detailed written explanation as to why the applicant believes that the application qualifies as an eligible facilities request;
(3) The applicant shall complete the city's standard application form, as may be amended from time to time;
(4) The applicant shall include a completed and signed application checklist available from the city, including all information required by the application checklist; (5) Payment of the fee prescribed by the Municipal Fee Schedule; (6) The application must be accompanied by all permit applications with all required application materials for each separate permit required by the city for the proposed WCF, including a building permit, an encroachment permit (if applicable) and an electrical permit (if applicable);
(7) For Tier 2 and 3 WCF Permits, the applicant must host a community meeting at a time and location designed to maximize attendance by persons receiving notice under this subparagraph to provide outreach to the neighborhood around the project site. The applicant shall give notice of the community meeting to all residents and property owners within 600 feet of the project site at least 14 days in advance of the community meeting. Applicants are encouraged to host the meeting before submitting an application. Before an application may be approved, the applicant shall provide a proof of notice affidavit to the city that contains:
A. Proof that the applicant noticed and hosted the community meeting no later than 15 days after filing the application;
B. A summary of comments received at the community meeting and what, if any, changes were made to the application as a result of the meeting; (8) For Tier 3 WCF Permits, the plans shall include a scaled depiction of the maximum increase in the physical dimensions of the proposed project that would be feasible and permitted by the Spectrum Act, using the proposed project as a baseline; and (9) Satisfy other such requirements as may be, from time to time, required by the Planning and Community Environment Department Director ("Director"), as publically stated in the application checklist.
(e) Permit Review ("Shot Clock") Time Periods. The city shall review and act upon application materials in a manner consistent with any timeframes provided in controlling state or federal law, including valid regulations and orders promulgated by the FCC. (f) Tier 1 WCF Permit Process and Findings
(1) A Tier 1 WCF Permit shall be reviewed by the Director. The Director's decision shall be final and shall not be appealable;
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(2) The Director shall grant a Tier 1 WCF Permit provided that the Director finds that the applicant proposes an eligible facilities request;
(3) The Director shall impose the following conditions on the grant of a Tier 1 WCF Permit:
A. The proposed collocation or modification shall not defeat any existing concealment elements of the support structure; and
B. The conditions of approval in Section 18.42.110(j). (g) Tier 2 WCF Permit Process and Findings
(1) A Tier 2 WCF Permit shall be reviewed by the Director, who may, in his or her sole discretion, refer an application to the Architectural Review Board. For WCF installations in the public right of way, the Director shall refer applications to the Architectural Review Board for review. The Director's decision shall be appealable directly to the City Council. An appeal may be set for hearing before the City Council or may be placed on the Council's consent calendar, pursuant to the process for appeal of architectural review set forth in Section 18.77.070(f). (2) T he Director, or Council on appeal, shall grant a Tier 2 WCF Permit provided the proposed WCF complies with the conditions of approval in Section 18.42.110(j), and all objective standards adopted and amended from time to time by resolution of the City Council or the development standards in Section 18.42.110(i). If such objective standards are repealed, an application shall not be granted unless, in addition to the other requirements of this section, and all of the architectural review findings in Section 18.76.020(d) can be made. (3) The Director, or Council on appeal, shall deny a Tier 2 WCF Permit if the above findings cannot be made.
(h) Tier 3 WCF Permit Process and Findings
(1) A Tier 3 WCF Permit shall be reviewed by the Director, who may, in his or her sole discretion, refer an application to the Architectural Review Board and/or Planning and Transportation Commission. For WCF installations in the public right of way, the Director shall refer applications to the Architectural Review Board for review. The Director's decision shall be appealable directly to the City Council. An appeal may be set for hearing before the City Council or may be placed on the Council's consent calendar, pursuant to the process for appeal of architectural review set forth in Section 18.77.070(f). (2) T
he Director or Council on appeal shall grant a Tier 3 WCF Permit provided the conditional use permit findings in Section 18.76.010(c) can be made, and the proposed WCF complies with the conditions of approval in Section 18.42.110(j), and all objective standards adopted and amended from time to time by resolution of the City Council or the development standards in Section 18.42.110(i)., and If the City Council repeals all objective standards, an application shall not be granted unless, in addition to the other requirements of this section, all of the architectural review findings in Section 18.76.020(d) can be made. (3) The Director, or Council on appeal, shall deny a Tier 3 WCF Permit if the above findings cannot be made.
(i) Generally Applicable Development Standards
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Unless the City Council has adopted more specific standards, and except as otherwise provided in this section, a proposed WCF Project shall comply with the following standards:
(1) Shall utilize the smallest antennae, radio, and associated equipment, as measured by volume, technically feasible to achieve a network objective; (2) Shall be screened from public view;
(3) When attached to an existing structure, shall be shrouded or screened using materials or colors found on existing structure;
(4) Shall be placed at a location that would not require the removal of any required landscaping or would reduce the quantity of landscaping to a level of noncompliance with the Zoning Code;
(5) An antenna, base station, or tower shall be of a "camouflaged" or "stealth" design, including concealment, screening, and other techniques to hide or blend the antenna, base station, or tower into the surrounding area, such as the use of a monopine design; (6) Shall not be attached on a historic structure/site, as designated by Chapter 16.49; (7) Except as otherwise permitted by the Spectrum Act, a building-mounted WCF may extend no more than fifteen (15) feet beyond the permitted height of the building in the zone district; (8) Except as otherwise permitted by the Spectrum Act, a tower or other stand-alone Tier 3 WCF Project shall not exceed beyond sixty-five (65) feet in height; and (9) A tower or other stand-alone Tier 3 WCF may encroach into the interior/street side and rear setback.
(j) Conditions of Approval
In addition to any other conditions of approval permitted under federal and state law and this Code that the Director deems appropriate or required under this Code, all WCF Projects approved under this chapter, whether approved by the Director, City Council, or deemed granted by operation of law, shall be subject to the following conditions of approval:
(1) Permit conditions. The grant or approval of a WCF Tier 1 Permit shall be subject to the conditions of approval of the underlying permit, except as may be preempted by the Spectrum Act.
(2) As-built plans. The applicant shall submit to the Director an as-built set of plans and photographs depicting the entire WCF as modified, including all transmission equipment and all utilities, within ninety (90) days after the completion of construction. (3) Applicant shall hire a radio engineer licensed by the State of California to measure the actual radio frequency emission of the WCF and determine if it meets FCC's standards. A report, certified by the engineer, of all calculations, required measurements, and the engineer's findings with respect to compliance with the FCC's radio frequency emission standards shall be submitted to the Planning Division within one year of commencement of operation.
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(4) Indemnification. 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 and at Applicant's expense, elect to defend any such action with attorneys of its own choice.
(5) Compliance with applicable laws. The applicant shall comply with all applicable provisions of the Code, any permit issued under this Code, and all other applicable federal, state and local laws (including without limitation all building code, electrical code and other public safety requirements). Any failure by the City to enforce compliance with any applicable laws shall not relieve any applicant of its obligations under this code, any permit issued under this code, or all other applicable laws and regulations. (6) Compliance with approved plans. The proposed Project shall be built in compliance with the approved plans on file with the Planning Division.
(7) Subject to city uses. Any permit to install or utilize poles or conduit in the public rights- of-way is subject to the city’s prior right to use, maintain, expand, replace or remove from use such facilities in the reasonable exercise of its governmental or proprietary powers. Such permit is further subject to the city’s right to construction, maintain, and modify streets, sidewalks, and other improvements in the public rights-of-way. The city, in its sole discretion, may require removal or relocation of a permittee’s equipment, at permittee’s sole cost and expense, if necessary to accommodate a city use.
(8) Replacement. Where feasible, as new technology becomes available, the applicant shall place above-ground equipment below ground and replace equipment remaining above-ground with smaller equipment, as determined by volume. The applicant shall obtain all necessary permits and approvals for such replacement.
(9) Permit length. WCFs permits shall be valid for the time provided in Section
18.42.110(n), except that a permit shall automatically expire after twelve months from the date of approval if within such twelve month period, the applicant has not obtained all necessary permits to commence construction. The director may, without a hearing, extend such time for a maximum period of twelve additional months only, upon application filed with him or her before the expiration of the twelve-month limit.
(k) Exceptions
(1) The decision-making authority may grant exceptions to objective standards adopted by City Council resolution or any provision of this Section 18.42.110, upon finding that:
A. The proposed WCF complies with the requirements of this Section 18.42.110 and any other requirements adopted by the City Council to the greatest extent feasible; and either B. As applied to a proposed WCF, the provision(s) from which exception is sought would deprive the applicant of rights guaranteed by federal law, state law, or both; or Item 22
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C. Denial of the application as proposed would violate federal law, state law, or both. (2) An applicant must request an exception at the time an application is initially submitted for a WCF permit under this Section 18.42.110. The request must include both the specific provision(s) from which exception is sought and the basis of the request, including all supporting evidence on which the applicant relies. Any request for exception after the City has deemed an application complete constitutes a material change to the proposed WCF and shall be considered a new application.
(3) If the applicant seeks an exception from objective standards adopted by City Council resolution or generally applicable development standards, the Director may refer the application to the Architectural Review Board for recommendation on whether the application complies with such standards to the greatest extent feasible. (43) The applicant shall have the burden of proving that federal law, state law, or both compel the decision-making authority to grant the requested exception(s), using the evidentiary standards applicable to the law at issue. The Ccity shall have the right to hire independent consultants, at the applicant’s expense, to evaluate the issues raised by the exception request and to submit rebuttal evidence where applicable. (l) Removal of Abandoned Equipment
A WCF (Tier 1, Tier 2, or Tier 3) or a component of that WCF that ceases to be in use for more than ninety (90) days shall be removed by the applicant, wireless communications service provider, or property owner within ninety (90) days of the cessation of use of that WCF. A new WCF permit shall not be issued to an owner or operator of a WCF or a wireless communications service provider until the abandoned WCF or its component is removed. (m) Revocation
The Director may revoke any WCF Permit if the permit holder fails to comply with any condition of the permit. The Director's decision to revoke a Permit shall be appealable pursuant to the process applicable to issuance of the Permit, as provided in subdivisions (f), (g), and (h) of this section.
(n) Expiration
Except as otherwise provided in the permit or in a lease or license agreement with the City of Palo Alto, WCF permits shall be valid for a period of ten years from the date of approval. An applicant may seek extensions of an approved WCF permit in increments of no more than ten years and no sooner than twelve months prior to the expiration of the permit. The Director shall approve an extension request upon finding that that applicant has complied with all conditions of approval for the WCF permit and will comply with all other requirements applicable to WCFs at the time the extension is granted. Prior to issuing a decision on an extension request, the Director may seek additional studies and information to be prepared at the applicant’s expense.
Item 22
Attachment A - Proposed
Ordinance
Item 22: Staff Report
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NOT YET APPROVED Attachment A
12 027120324
SECTION 4. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.
SECTION 5. Effective Date. This Ordinance shall be effective on the thirty-first date after the date of its adoption.
SECTION 6. This ordinance shall be of no further force or effect as of [Insert date 24 months + 1 day after date of adoption], or unless repealed earlier by the Council.
SECTION 7. CEQA. The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarifies existing local regulations.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED:
______________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: ____________________________
City Manager
______________________________
City Attorney or designee ____________________________ Director of Planning and
Community Environment
Item 22
Attachment A - Proposed
Ordinance
Item 22: Staff Report
Pg.
19 Packet Pg. 332 of 566
Attachment B
1 Standards for reviewing Wireless Communication Facilities (WCFs) in Palo Alto All projects:
1) Generally Applicable Development Standards, Palo Alto Municipal Code (PAMC) Section 18.42.110 (i)
(i) Generally Applicable Development Standards
Unless the City Council has adopted more specific standards, and except as otherwise provided in this section, a proposed WCF Project shall comply with the following standards:
(1) Shall utilize the smallest antennae, radio, and associated equipment, as measured by volume, technically feasible to achieve a network objective; (2) Shall be screened from public view;
(3) When attached to an existing structure, shall be shrouded or screened using materials or colors found on existing structure;
(4) Shall be placed at a location that would not require the removal of any required landscaping or would reduce the quantity of landscaping to a level of noncompliance with the Zoning Code;
(5) An antenna, base station, or tower shall be of a "camouflaged" or "stealth" design, including concealment, screening, and other techniques to hide or blend the antenna, base station, or tower into the surrounding area, such as the use of a monopine design;
(6) Shall not be attached on a historic structure/site, as designated by Chapter
16.49;
(7) Except as otherwise permitted by the Spectrum Act, a building-mounted WCF may extend no more than fifteen (15) feet beyond the permitted height of the building in the zone district;
(8) Except as otherwise permitted by the Spectrum Act, a tower or other stand- alone Tier 3 WCF Project shall not exceed beyond sixty-five (65) feet in height; and (9) A tower or other stand-alone Tier 3 WCF may encroach into the interior/street side and rear setback.
2) Conditions of Approval, PAMC Section 18.42.110 (j)
(j) Conditions of Approval
In addition to any other conditions of approval permitted under federal and state law and this Code that the Director deems appropriate or required under this Code, all WCF Projects approved under this chapter, whether approved by the Director or Item 22
Attachment B - WCF
Review Standards
(Municipal Code excerpts)
Item 22: Staff Report
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Attachment B
2 deemed granted by operation of law, shall be subject to the following conditions of approval:
(1) Permit conditions. The grant or approval of a WCF Tier 1 Permit shall be subject to the conditions of approval of the underlying permit, except as may be preempted by the Spectrum Act.
(2) As-built plans. The applicant shall submit to the Director an as-built set of plans and photographs depicting the entire WCF as modified, including all transmission equipment and all utilities, within ninety (90) days after the completion of construction. (3) Applicant shall hire a radio engineer licensed by the State of California to measure the actual radio frequency emission of the WCF and determine if it meets FCC's standards. A report, certified by the engineer, of all calculations, required measurements, and the engineer's findings with respect to compliance with the FCC's radio frequency emission standards shall be submitted to the Planning Division within one year of commencement of operation.
(4) Indemnification. 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 and at Applicant's expense, elect to defend any such action with attorneys of its own choice.
(5) Compliance with applicable laws. The applicant shall comply with all applicable provisions of the Code, any permit issued under this Code, and all other applicable federal, state and local laws (including without limitation all building code, electrical code and other public safety requirements). Any failure by the City to enforce compliance with any applicable laws shall not relieve any applicant of its obligations under this code, any permit issued under this code, or all other applicable laws and regulations.
(6) Compliance with approved plans. The proposed Project shall be built in compliance with the approved plans on file with the Planning Division. (7) Subject to city uses. Any permit to install or utilize poles or conduit in the public rights- of-way is subject to the city’s prior right to use, maintain, expand, replace or remove from use such facilities in the reasonable exercise of its governmental or proprietary powers. Such permit is further subject to the city’s right to construction, maintain, and modify streets, sidewalks, and other improvements in the public rights-of- way. The city, in its sole discretion, may require removal or relocation of a permittee’s equipment, at permittee’s sole cost and expense, if necessary to accommodate a city use.
Item 22
Attachment B - WCF
Review Standards
(Municipal Code excerpts)
Item 22: Staff Report
Pg.
21 Packet Pg. 334 of 566
Attachment B
3 (8) Replacement. Where feasible, as new technology becomes available, the applicant shall place above-ground equipment below ground and replace equipment remaining above-ground with smaller equipment, as determined by volume. The applicant shall obtain all necessary permits and approvals for such replacement. (9) Permit length. WCFs permits shall be valid for the time provided in Section 18.42.110(n), except that a permit shall automatically expire after twelve months from the date of approval if within such twelve month period, the applicant has not obtained all necessary permits to commence construction. The director may, without a hearing, extend such time for a maximum period of twelve additional months only, upon application filed with him or her before the expiration of the twelve-month limit.
Additional findings for Tier 2 and 3 Projects in the public rights-of-way, if Council’s objective standards are repealed:
3) Architectural Review findings, PAMC Section 18.76.020(d)
18.76.020 Architectural Review
…(d) Findings
Neither the director, nor the city council on appeal, shall grant architectural review approval, unless it is found that each of the following applicable findings is met:
(1) The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides.
(2) The project has a unified and coherent design, that:
(A) Creates an internal sense of order and desirable environment for occupants, visitors, and the general community,
(B) Preserves, respects and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant,
(C) Is consistent with the context-based design criteria of the applicable zone district,
(D) Provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations,
(E) Enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas.
Item 22
Attachment B - WCF
Review Standards
(Municipal Code excerpts)
Item 22: Staff Report
Pg.
22 Packet Pg. 335 of 566
Attachment B
4 (3) The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. (4) The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building's necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). (5) The landscape design complements and enhances the building design and its surroundings, is appropriate to the site's functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained.
(6) The project incorporates design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning.
For Tier 3 projects only
4) Conditional Use Permit findings, PAMC Section 18.76.010(c)
18.76.010 Conditional Use Permit (CUP)
…(c) Findings
Neither the director, nor the city council on appeal, shall grant a conditional use perrnit, unless it is found that the granting of the application will:
(1) Not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience; (2) Be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning).
Item 22
Attachment B - WCF
Review Standards
(Municipal Code excerpts)
Item 22: Staff Report
Pg.
23 Packet Pg. 336 of 566
DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Resolution No. 9873
Resolution of the Council of the City of Palo Alto Amending Objective Aesthetic, Noise, and Related Standards for
Wireless Communication Facilities in the Public Rights of Way The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Findings and Declarations.
a. On April 15, 2019, the City Council adopted Resolution 9825, establishing objective aesthetic, noise, and related standards for Wireless Communication Facilities (WCFs) on Streetlight and Wood Utility Poles in the Public Rights-of-Way.
b. On June 17, 2019, the City Council adopted Resolution 9847, amending the standards to delete inadvertently added language, clarify existing standards, and adopt an interim setback from public schools.
c. On August 12, 2019, the City Council adopted Resolution 9855, amending the standards to address a conflict with other City standards and to clarify the allowable height for WCFs on Streetlights and Wood Utility Poles.
d. The City Council wishes to consolidate the existing objective standards previously described in Resolution 9855 for clarity and update the objective standards in order to address Council specified location, design, and other preferences in the City for WCF on Streetlight Poles and Wood Utility Poles.
SECTION 2. Objective Standards for WCFs on Streetlight Poles and Wood Utility Poles in the Public Rights-of-Way Amended.
The City Council hereby adopts the objective standards in Exhibit 1, attached to and incorporated into this resolution, for Wireless Communication Facilities in the Public Rights of Way on Streetlight Poles and Wood Utility Poles.
The City Council hereby adopts Exhibit 2 that illustrates the Residential Zone of Exclusion and Exhibit 3 that illustrates the City of Palo Alto roadway network and locations of special setbacks relative to generalized zoning designations for the sole purpose of supplementing the objective standards in Exhibit 1.
SECTION 3. If any section, subsection, clause or phrase of this resolution or the attached standards is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the resolution and exhibits. The Council hereby declares that it should have 1 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
adopted the resolution and exhibits, and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 4. Environmental Review. The Council finds that this resolution is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it does not authorize the construction of Wireless Communication Facilities in any locations where such facilities are not already permitted; therefore it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. The resolution is further exempt under CEQA Guidelines sections 15301, 15302, 15303 and 15305 because it represents part of a comprehensive regulatory scheme governing minor alterations to existing facilities or small structures.
INTRODUCED AND PASSED: December 16, 2019
AYES: CORMACK, DUBOIS, FILSETH, KNISS, KOU, TANAKA
FINENOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Deputy City Attorney City Manager
Director of Planning and Development
Services
2 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
25 Packet Pg. 338 of 566
DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Exhibit 1
Objective Standards for Wireless Communication Facilities in the Public Rights of Way on Streetlight Poles and Wood Utility Poles A Wireless Communication Facility (WCF) proposed for the public right of way must comply with the applicable provisions of the City’s Municipal Code and all of the following objective standards. In each instance where a proposed facility is unable to comply with the City’s objective standards, a WCF Exception may be requested and evaluated in accordance with this resolution and PAMC Section
18.42.110(k).1The following standards apply to both streetlight poles and wood utility poles, unless otherwise noted.
WCF SITING STANDARDS
Permitted Zoning Districts
Public School Boundary
WCF placement is permitted in non-residential zoning districts.
A WCF shall not be placed within 600 feet of a parcel containing a public school. No WCF Exception shall be granted allowing a WCF to be placed closer than 300 feet to a parcel containing a public school.
Residential Zone of Exclusion No WCF shall be placed within the public right of way in the area (this standard applies to WCF Exception between the street centerline and the central fifty percent (50%) requests to locate in residential
districts) of the immediately adjacent parcel’s front lot line. The central fifty percent standard shall be based on the parcel’s lot width2. For corner lots, the central fifty percent standard along the street lot line3 shall be based on the parcel’s lot depth4. Exhibit 2 illustrates this requirement.
Residential Roadways Any request for a WCF Exception involving placement of a WCF (this standard applies to WCF Exception within a residential zoning district shall prioritize WCF placement requests to locate in residential
districts) on the following roadway types (See Exhibit 3):
Expressways
Arterials
Residential Arterials
Roadways identified with a Special Setback (including
collector and local streets).
1 The City may hire an independent consultant to evaluate WCF Exceptions at applicant’s expense. 2 Palo Alto Municipal Code Section 18.04.030(a)(93)
3 Palo Alto Municipal Code Section 18.04.030(a)(91)(E)
4 Palo Alto Municipal Code Section 18.04.030(a)(87)
3 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
In each instance above, the priority shall be for placement of a WCF most distant from residential property.
An additional WCF Exception request must be made to place a WCF on a collector or a local roadway that does not have an identified special setback.
Building or Structure Setback
Distance Between WCFs
A WCF shall not be placed closer than 20 feet from any building used for occupancy in any zoning district.
A WCF shall not be placed less than 600 feet away from another WCF. This requirement does not preclude WCFs collocating on the same structure where otherwise allowed.
Intersection Corners5 A WCF shall not be placed less than 20 feet away from any roadway intersection. An intersection is measured from the start of the curb radius.
Scenic Routes6 A WCF shall not be placed along an identified scenic route.
Historic Districts, Sites, and
Structures
A WCF shall not be placed within a listed historic district, nor immediately adjacent to a parcel with an historic structure, nor immediately adjacent to an historic site, as those terms are defined by PAMC Section 16.49.020.
A WCF shall not be placed in a potential historic district, or immediately adjacent to a potential historic structure or site, where the application for historic designation was filed with the City prior to the filing of a WCF application, until a final decision has been made regarding that pending historic designation.
WCF DESIGN STANDARDS
Underground Design
(Preferred Option)
Radio equipment shall be placed in an underground vault. The associated antenna(s) shall be placed in a shroud at the top of a nearby pole.
Underground vaults shall be the minimum volume necessary to house WCF equipment and include information detailing why the proposed dimensions are required. Maximum vault size shall not exceed 5 feet 8-inches x 8 feet 2-inches x 5 feet 7-inches or 260 cubic feet, excluding space required for ventilation or sump pump equipment.
5 Gateway intersections are identified on Map L-4 in the Comprehensive Plan. 6 Scenic routes are identified in Policy L-9.1 in the Comprehensive Plan. 4 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Top-Mounted Design
(Secondary Option)
Radio equipment and the associated antenna(s) shall be enclosed within a shroud at the top of the pole.
Minimal Sunshield Design
Use of this design requires a WCF
Exception
Radio equipment shall be enclosed within one or two sunshields not exceeding 8 inches wide nor 0.75 cubic feet in volume each, mounted directly to the side of the pole. The associated antenna(s) shall be placed in a shroud at the top of the pole.
Sunshields shall be attached at least 12 feet above ground level and, when located on wood utility poles, shall not interfere with the identified communication space.
Existing Signage Design
Use of this design requires a WCF
Exception
Radio equipment shall be attached to a pole behind existing signage under the following conditions:
i) Radio equipment shall be placed within a shroud that does not exceed the dimensions of the sign in height and width, nor 4 inches in depth, including any required mounting bracket. ii) In no event shall WCF equipment obscure or interfere with the visibility or functioning of the signage.
The associated antenna(s) shall be placed in a shroud at the top of the pole.
WCF Antenna and Shroud Antennas shall have the smallest size possible to achieve the Dimensions (Diameter / Height) coverage objective.
The diameter of the antenna and shroud shall not exceed 15 inches at their widest.
For Streetlight Poles: The maximum WCF height shall not exceed 3 feet (or 5.5 feet for top-mounted designs) from the top of the streetlight pole that meets the City standards for the proposed location.
The associated “antenna skirt” shall taper to meet the pole above the mast arm.
For Wood Utility Poles: In no circumstance shall the total height of a pole and all WCF equipment exceed 55 feet. For wood utility poles carrying power lines, replacement poles shall be the minimum height necessary to provide GO 95 mandated clearance between WC equipment and power lines. For wood utility poles without power lines, any WCF equipment shall not increase the height of the pole by 5.5 feet when compared with the height of the existing pole.
5 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
The associated “antenna skirt” shall taper to meet the top of the pole if wider than the pole.
WCF Design Quality Antennas and/or equipment at the top of the pole shall be covered by a single integrated shroud and “antenna skirt” designed without gaps between materials or sky visible between component surfaces and between the shroud or skirt and the top of the pole.
All components external to the pole shall have an integral color or shall be painted to match the color and/or materials of the pole.
Equipment shall be oriented to face in either of the directions of travel in the right of way and shall not face or extend toward private property or the curb line.
WCF Equipment Adjustment For Streetlight Poles: Equipment that cannot propagate an adequate signal within the shrouding required by the standard designs shall be attached to a streetlight pole at a height of 2 feet below the light mast or higher. Each instance of such equipment shall not exceed 0.85 cubic feet, nor shall the total volume of such equipment and any shrouding exceed 2.6 cubic feet per streetlight pole.
For Wood Utility Poles:
Equipment that cannot propagate an adequate signal within the shrouding required by the standard designs shall be attached to the top of the pole or on a cross arm or brace protruding from the pole the minimum extent necessary to comply with safety standards, including GO 95. Such cross arm shall be placed as high on the pole as technically feasible. Each instance of such equipment shall not exceed 0.85 cubic feet nor shall the total volume of such equipment exceed 2.6 cubic feet per wood utility pole.
Curb Clearances Any WCF attachments placed below 16 feet above ground level shall not be placed closer than 18 inches to the curb, nor shall they extend over the sidewalk (Caltrans Highway Design Manual Section 309).
All WCF equipment shall maintain at least 3 feet from any curb cut.
WCF Wires and Cabling For Streetlight Poles: All wires and cabling shall be routed entirely underground and within the pole and any attached shroud.
For Wood Utility Poles: All wires and cabling to equipment shall be within the shroud or shall be within conduit. All conduit shall be mounted flush to the pole.
6 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
29 Packet Pg. 342 of 566
DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Safety Signs Safety signs shall be the smallest size possible to accomplish its purpose.
Power Disconnects For Streetlight Poles: Power disconnects shall be labeled and placed in a vault near the base of the pole.
For Wood Utility Poles: Power disconnects shall be labeled and placed on the wood pole or in a vault near the base of the pole.
Ground Mounted Equipment
Existing Pole Locations
Except as provided in these standards, no equipment cabinets may be placed at grade.
A WCF shall utilize an existing streetlight pole or wood utility pole location. Any new pole locations are prohibited unless approved through a City Public Works/Utilities pole placement application.
WCF PERFORMANCE STANDARDS
Pole Replacement For Streetlight Poles: An existing streetlight pole proposed for a WCF installation shall be replaced with a new pole.7
For Wood Utility Poles: An existing wood utility pole proposed for a WCF installation shall be replaced with a new pole.8
Landscaping Replacement
Landscape Screening
Any existing landscaping removed or damaged by installation shall be replaced in kind.
A WCF shall be placed where existing street tree foliage or new street tree or amenity tree foliage within 35 feet of the WCF provides interruption of direct views of the WCF.
7 Replacement streetlight poles must meet the currently applicable City standards for the pole, including foundation and bolt designs, conduit separation, aluminum material, color, width, height, light mast characteristics (examples:
orientation, design, height, color temperature and photometrics), and the presence/absence of decorative features.
Replacement poles will conform to Public Works Department (PWD) style guidelines and Utilities-Electrical (CPAU) standards where the City has adopted standards and will match the pole being replaced where no standards exist.
Standard specifications for streetlight poles in the City can be obtained from the Utilities-Electrical (CPAU) and Public Works (PWD) Departments.
8 Replacement wood utility poles must meet the currently applicable City standards for the pole, including width, height, color, material, structural capacity, and GO 95 compliance. Replacement poles shall be no greater in diameter or other cross-sectional dimension than is necessary for the proper functioning of the pole with all attachments.
Existing pole functionality shall be maintained, such as in regard to electrical lines, climbing space, light masts (examples: orientation, design, height, color temperature and photometrics), and provision of communication space, unless existing functionality, such as transformers, can be relocated with the approval of the Utilities-Electrical Department (CPAU). Standard specifications for pole replacement in the City can be obtained from CPAU. For wood utility poles carrying power lines, replacement poles shall be the minimum height necessary to provide GO-95 mandated clearance between WCF equipment and power lines. 7 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Noise9 Noise from a WCF shall comply with PAMC Chapter 9.10 and shall be consistent with noise-related Comprehensive Plan goals and policies.
City Marketing Banners
WCF EXCEPTIONS
WCF installations shall not require any changes in the City’s existing banner marketing program.
A WCF applicant may file an application(s) containing a request for one or more WCF Exceptions to the objective standards set forth in this resolution or any other provision of PAMC Section 18.42.110. The request for a WCF Exception(s) does not exempt a WCF from complying with other objective wireless administrative standards adopted by City Council resolution or any other provision of PAMC Section
18.42.110.
Each WCF Exception request must be made at the time an application is submitted and must include both the specific provision(s) from which the exception is sought and the basis of the request, including all supporting evidence on which the applicant relies. The applicant has the burden of proving that federal law, state law, or both, compel the decision-making authority to grant the requested exception(s). The WCF Exception must satisfy the requirements of PAMC Section 18.42.110(k) and demonstrate why the standard is infeasible.
Failure to identify all required WCF Exceptions upon application submittal may result in application denial.
No WCF Exception may be granted that allows a WCF to be placed:
1) within 300 feet of a parcel containing a public school, 2) within 20 feet of a habitable residential building in a residential zoning district, 3) on wood utility poles within the Residential Zone of Exclusion described in this resolution, or 4) in an alley within a residential zoning district.
9 In residential areas with an average 24-hour noise level (Ldn) at or below 60 decibels (dB), noise generated by WCF equipment shall not cause the L dn to exceed 60dB or to increase by 5.0 dB or more, even if the resulting L dn would remain below 60 dB. In residential areas with a Ldn above 60 dB, noise generated by WCF equipment shall not cause the average to increase by 3.0 dB or more.
8 Item 22
Attachment C - WCF
Objective Standards
(proposed for repeal)
Item 22: Staff Report
Pg.
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DocuSign Envelope ID: ECCACC0E-18AC-4D5E-9AEE-0C930810BD0A Attachment C
Residential Zone of Exclusion (RZOE) (this standard applies to WCF Exception requests to locate in residential districts) No WCF shall be placed within the public right of way in the area between the street centerline and the central fifty percent (50%) of the immediately adjacent parcel’s front lot line. The central fifty percent standard shall be based on the parcel’s lot width. For corner lots, the central fifty percent standard along the street lot line shall be based on the parcel’s lot depth. 6 T h e C i t y o f
P a l o A l t o
50% of 70 ft lot width
= 35 ftROAD CENTERLINE
64.9' 64.9' 139.1'' 100.1'
32.45 ft 32.45 ft 5
5 00
.
.
039
5 f t
ft
69.55 ft
100.1'
100.1'
50% of 139.1 lot width
= 69.55 ft
' 64.9' 64.9'
100.1'
139.1'
Legend
ROAD CENTERLINE
CURB LIP
144.2'PARCEL/PROPERTY LINE
This map is a product of the
City of Palo Alto GIS
144.2'
0' 53'
rrivera, 2019-11-25 17:25:35
(\\cc-maps\Encompass\Admin\Personal\rrivera.mdb)
This document is a graphic representation only of best available sources.
The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Item 22
Attachment C - WCF Objective
Standards (proposed for repeal)
Item 22: Staff Report
Pg.
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6 T h e C i t y o f
P a l o A l t o
Channing Ave
15 15
Legend
Residential Zone Districts
Non- Residential Zone Districts
Public Facilities/Open Space Zone Districts
Special Setback Frontages
Local
This map is a product of the
City of Palo Alto GIS
Special Co
Collector
Residential Arterial
Arterial
Expressway
City Jurisdictional Limits
0' 2670'
rrivera, 2019-11-25 13:00:40
(\\cc-maps\Encompass\Admin\Personal\rrivera.mdb)
This document is a graphic representation only of best available sources.
The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto Item 22
Attachment C - WCF Objective
Standards (proposed for repeal)
Item 22: Staff Report
Pg.
33 Packet Pg. 346 of 566
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 16, 2024
Report #:2412-3845
TITLE
FIRST READING: Adoption of a Temporary Ordinance Amending Various Sections of Titles 18 (Zoning) and 21 (Subdivisions and Other Divisions of Land) to Implement Laws from the 2024 Legislative Session; Adoption of an Identical Emergency Ordinance; and Adoption of a Resolution Repealing SB 9 Objective Design Standards and Replacing Them with Single Family Objective Standards. CEQA Status – Exempt Pursuant to CEQA Guidelines 15061(b)(3).
RECOMMENDATION
Staff recommends the City Council adopt the attached ordinances and resolution.
EXECUTIVE SUMMARY
On November 12, 2024, the Palo Alto City Council directed staff to draft an emergency ordinance to align with recent state planning and land use laws, specifically addressing required updates to the municipal code in response to SB 937, SB 1211, AB 2694, AB 3116, and SB 450.
These laws introduce changes such as deferred impact fee payments, expanded allowances for accessory dwelling units (ADUs), enhancements to density bonus provisions for affordable, senior, and student housing, and updated SB 9 regulations to streamline lot splits and residential development in single-family zones. The ordinance includes interim measures while the city plans a more comprehensive update in 2025 to address additional legislative requirements and feedback from the Architectural Review Board and Planning and Transportation Commission. Staff anticipates these changes will impact application processes, require community engagement, and may have departmental budget implications due to fewer Single Family Individual Review applications.
BACKGROUND
On November 12, 2024, the City Council directed staff to return with an emergency ordinance implementing key planning and land use laws from the 2024 legislative session [link to minutes]. The staff report for the November 12 item included a brief summary of all planning Item 23
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and land use legislation of interest for Palo Alto.1 This report focuses on the few bills that require updates to the Palo Alto Municipal Code.
The amendments proposed in the attached documents are intended to be interim measures only, and staff with return to the Council in 2025 for a fuller discussion of these issues following review by the Architectural Review Board and/or Planning and Transportation Commission, as appropriate.
ANALYSIS
The following bills require updates to the Palo Alto Municipal Code.
SB 937 – Deferred Impact Fees
SB 937 amends California Government Code Section 66007 to allow residential development projects to delay the payment of development impact fees until the date of the first certificate of occupancy or temporary certificate of occupancy. If the project consists of more than one dwelling, the City may require that fees be paid on a pro rata basis as each dwelling receives a certificate of occupancy. Fees may be collected at an earlier date in certain circumstances, including if they are related to providing water, wastewater, public safety facilities, or transportation facilities that serve the subject residential development. The fees may be secured by a performance bond or letter of credit. If they are not so secured, any unpaid fees shall constitute a lien on the property and be collected in the same manner and time as property taxes.
Palo Alto already allows this type of fee deferral pursuant to Municipal Code Section 16.64.030 (Deferred Payment). The primary change required by SB 937 is to specify that the amount of the fees to be paid is based on the fees in effect on the date the building permit is issued. This is a change from the City’s current practice, which is to charge fees based on the amounts in effect on the date of payment. The ordinance has been drafted to allow an applicant the opportunity to pay the fee in effect at the time of building permit issuance or at the time of payment. This reflects the possibility that Council may adjust housing-related development impact fees in the future based on additional nexus studies or feasibility analysis.
SB 1211 – ADUs
SB 1211 amends state ADU law to clarify and expand the allowances for ADUs on properties with multifamily residential development. First, the law adds a definition of “livable space,” to mean “a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation. This definition is currently only relevant to a provision that allows existing multifamily developments to convert non-livable space, such as “storage rooms, boiler 1 Staff Report, dated November 12, 2024:
https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=84859 ed8-51e8-428d-83c3-56d45f7bb5dd
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rooms, passageways, attics, basements, or garages,” into ADUs. It is not clear that the added definition provides any more guidance than the existing law.
SB 1211 also amends a provision that allows existing or proposed multifamily developments to construct up to two detached ADUs. Now, existing multifamily projects can construct up to eight detached ADUs, but no more than the number of units existing on the lot. Proposed developments are still limited to two detached ADUs.
Finally, SB 1211 expands a provision of ADU law the prohibits requirements for replacement parking. Currently, local agencies cannot require replacement parking when a garage, carport, or other covered parking structure is demolished for an ADU. Under SB 1211, the City also cannot require replacement of an uncovered parking space that is demolished for an ADU.
These changes are not included in the attached ordinance, as the City received a letter from HCD on October 28, 2024, detailing a wide variety of perceived inconsistencies between the City’s ADU ordinance and state law. Staff will bring forward a more comprehensive update to the ADU ordinance responding to both the HCD letter and SB 1211 in early 2025.
AB 2694 and AB 3116 – State Density Bonus Law
State Density Bonus Law offers a variety of benefits to developers that provide certain levels of affordable housing as part of a housing development. The law also offers these benefits to senior housing and student housing projects.
AB 2694 expands the definition of senior housing development to include residential care facilities for the elderly, which may also consist of shared housing arrangements where units do not have individual kitchens.
AB 3116 amends the law to allow the student housing to serve part-time students, where previously the housing units were required to be occupied by full-time students. The law also creates a sliding scale of bonus density available based on the amount of affordable, lower income units. Previously a developer was only eligible for a 35 percent density bonus if it restricted 20 percent of the units to affordable rates. Now, the density bonus can reach 50 percent, if the developer restricts at least 24 percent of the units to affordable rates. The law also adds clarifying definitions and provides that no parking may be required for student housing projects.
The attached ordinances update PAMC Chapter 18.15 (Density Bonus) to reflect the changes enacted by AB 2694 and AB 3116.
SB 450 – SB 9 Updates
SB 450 updates and expands SB 9 from the 2021 legislative session. SB 9 allows the owner of a single-family zoned property to divide one lot into two, and build up to two units on each resulting lot. SB 9 included several qualifying limitations – for example that an SB 9 project may Item 23
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not demolish more than 25 percent of the exterior walls of a property that was tenant-occupied in the past three years. SB 450 removes this restriction.
SB 450 also creates new, strict, timelines for local agency processing of SB 9 applications. Now, the City must render a decision on an SB 9 project within 60 days after receiving a complete application. If the City fails to act within this timeframe, the application is deemed approved.
SB 450 also amends the legislative findings supporting SB 9 to find that the state law is necessary to support the creation of housing at all affordability levels. This addresses a court decision in City of Redondo Beach v. Bonta (2024) Los Angeles County Super. Ct. Case No. 22STCP1143, which narrowly invalidated SB 9 as to the plaintiff charter cities because the prior legislation had been founded on the creation of affordable housing.
Finally, and most significantly for Palo Alto, SB 450 precludes the imposition of standards on SB 9 projects unless they apply uniformly to development within the underlying zone. Currently, the City has adopted a series of objective design standards for SB 9 development that are derived from the City’s experience with Single Family Individual Review applications over the past several years.2 The objective SB 9 standards are notably distinguished from the underlying zone in height (30 feet for R1 and 22 or 27 feet for SB 9 projects); interior side yard daylight plane (starting at 10 feet in the R1 district and 8 feet for SB 9 projects); and several other requirements intended to objectively address privacy and other contextual standards typically achieved through a discretionary application process.
The attached ordinance repeals these SB 9-specific regulations and re-adopts a modified version as two-story development standards to apply throughout the R-1 zone. For both SB 9 and single-family development, a project applicant may choose to deviate from these standards by going through the Single Family Individual Review process.
It is anticipated the implementation of state law and the proposed changes will reduce the number of Single Family Individual Review applications filed with the City and may alter the community’s expectations on what projects may be subject to public comment and how public engagement may impact certain outcomes.
Currently, construction of two-story homes requires public notice to neighbors within 150 feet of a project site and creates an opportunity for a neighbor to request a hearing to address concerns with a staff-level decision. A Single Family Individual Review is a discretionary action, however, a homeowner will now have an option to have their new two-story home processed ministerially through a building permit if it meets the (formerly SB 9) objective standards set forth in the attached resolution.
2 City Council Resolution No. 10150: https://portal.laserfiche.com/Portal/DocView.aspx?id=71129&repo=r- 704298fc&searchid=3bff70fb-243a-4be0-9385-f7b09e650c1a
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As staff works on preparing an ordinance in 2025 through the City’s legislative process, it will use that opportunity to inform appointed officials making recommendations to the Council and engage the community, particularly those invested in the Single Family Individual Review process to make them aware of these changes. Staff will also consider how a reduction in these applications may impact the department’s budget and implications for historic review.
FISCAL/RESOURCE IMPACT
The recommendation in this report requires addition staff work and analysis that will be needed for the upcoming calendar year, potentially impacting the amount of work that can be assigned or completed by the Planning and Development Services department as the City Council considers its budget priorities and priority objectives.
Additionally, a reduction in Single Family Individual Review applications as a result of these state law changes and local implementation efforts may result in less revenue to the Planning and Development Services department. This may have long term implications to department staffing and professional service contracts, which staff will analyze as it prepares a permanent ordinance. Any change in application filing in the short term as a result of the subject recommendation would be a minor relative to the overall department budget.
STAKEHOLDER ENGAGEMENT
Staff prepared a report for November 12, 2024 summarizing the state law changes and highlighting this recommended action to implement state housing laws, which take effect on January 1, 2025. Additional engagement will occur in 2025 as staff prepares a permanent ordinance.
ENVIRONMENTAL REVIEW
The project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that implementation of superseding state laws maintains the status quo.
ATTACHMENTS
Attachment A: Temporary Ordinance Amending Various Sections of Titles 18 (Zoning) and 21 (Subdivisions and Other Divisions of Land)
Attachment B: Emergency Ordinance Amending Various Sections of Titles 18 (Zoning) and 21 (Subdivisions and Other Divisions of Land)
Attachment C: Resolution Repealing SB 9 Objective Design Standards and Replacing Them with Single Family Objective Standards
APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 23
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*NOT YET APPROVED*
0160161_kb2_20241204_ay16
1 Ordinance No.
Interim Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws
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 September 19, 2024, the Governor of the State of California signed Senate Bill 937, effective January 1, 2025. SB 937 allows housing developers to defer payment of impact fees until issuance of a certificate of occupancy and freezes fees at the level in effect at the time of building permit issuance for certain “designated residential development projects,” as defined in the bill.
B. On September 19, 2024, the Governor signed Assembly Bill 2694, effective January 1, 2025. AB 2694 expands the definition of a “senior citizen housing development” in the Density Bonus Law to include a residential care facility for the elderly, as defined.
C. On September 22, 2024, the Governor signed Assembly Bill 3116, effective January 1, 2025. AB 3116 added a definition of “student housing development” to the Density Bonus Law and amended provisions of the Density Bonus Law related to the percentage density bonus and incentives or concessions certain student housing developments must receive.
D. On September 19, 2024, the Governor signed Senate Bill 1211, effective January 1, 2025.
SB 1211 allows up to 8 detached accessory dwelling units (ADUs) on parcels with existing multifamily development and provides that cities can no longer require replacement parking for uncovered parking spaces that are removed for an ADU.
E. On September 19, 2024, the Governor signed Senate Bill 450, effective January 1, 2025.
SB 450 amends SB 9 (codified at Sections 65852.21 and 66411.7 of the California Government Code) to create a 60-day timeframe for approval or denial of an SB 9 application and requires that SB 9 projects be subject to only those objective standards that apply uniformly in the underlying zone.
F. There is insufficient time for consideration of and recommendation on the necessary amendments to Title 18 by the Planning and Transportation Commission (PTC) prior to action by the City Council. The Council therefore declares that an interim ordinance, pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate measure, pending consideration of a permanent ordinance by the PTC.
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Attachment A -
Temporary Ordinance
Amending Various
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(Subdivisions and Other
Divisions of Land)
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2 SECTION 2. Section 16.64.030 (Deferred Payment) of Chapter 16.64 (Development Fee and In-Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through):
16.64.030 Deferred Payment
For residential development only, payment of a fee may be deferred to the date of final building inspection approval of the development, the development is approved for occupancy. If the development contains more than one dwelling, the fee shall be paid on a pro rata basis for each dwelling when it is approved for occupancy.
The fees may be deferred only if provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The director of planning and development services may execute the agreement on behalf of the city in a form acceptable to the city attorney.
SECTION 3. Section 16.64.040 (Calculation of Fee) of Chapter 16.64 (Development Fee and In-Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
16.64.040 Calculation of Fee
A fee shall be payable at the rate specified in the council-adopted municipal fee schedule in effect on the date the fees are paid, except: (1) an that the applicant for a vesting tentative map for a development project shall pay the fees in effect on the date the application for the vesting tentative map is deemed complete., and (2) an applicant that defers fees for a designated residential redevelopment project, as defined in California Government Code Section 66007, may elect to pay the fees in effect at the time of building permit issuance.
SECTION 4. Section 18.15.020 (Definitions) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.020 Definitions
[…]
(w) “Senior citizen housing development” means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been “designed to meet the physical and social needs of senior citizens,” and which otherwise qualifies as “housing for older persons” as that phrase is used in Item 23
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3 the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as these phrases are used in California Civil Code Sections
51.2, 51.3, and 51.12. For purposes of this Chapter, “senior citizen housing development” includes a shared housing building development and a residential care facility for the elderly, as defined in California Health and Safety Code Section 1569.2.
[…]
(y) “Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations), and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section.
“Shared housing unit” for purposes of a residential care facility for the elderly, as defined in California Health and Safety Code Section 1569.2, includes a unit without an individual kitchen where a unit may be shared by unrelated persons, and a unit where a room that may be shared by unrelated persons meets the “minimum room area” requirements specified in Section R304 of the California Residential Code.
(z) “Student housing development” means a development that contains bedrooms containing two or more bedspaces that have a shared or private bathroom, access to a shared or private living room and laundry facilities, and access to a shared or private kitchen.
(y)(aa) "Total units" or "total dwelling units" means a calculation of the number of units that:
(1) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
(2) Includes a unit designated to satisfy an inclusionary zoning requirement of a city, county, or city and county.
For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, "unit" means one shared housing unit and its pro rata share of associated common area facilities.
(z)(ab) "Very low vehicle travel area" means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, "area" may include a travel analysis zone, hexagon, or grid. For the purposes of determining "regional vehicle miles traveled per capita" pursuant to this paragraph, a "region" is the entirety of incorporated and unincorporated areas governed by a multi- county or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.
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Temporary Ordinance
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Sections of Titles 18
(Zoning) and 21
(Subdivisions and Other
Divisions of Land)
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4 SECTION 5. Section 18.15.030 (Density Bonuses) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.030 Density Bonuses
This section describes the density bonuses that will be provided, at the request of an applicant, when that applicant provides restricted affordable units as described below.
[...]
(c) The city shall grant a thirty-five percent (35%) density bonus when an applicant for a student housing development of five (5) or more dwelling units seeks and agrees to construct in accordance with the requirements of this section and Government Code Section 65915: (1) At, in which at least twenty percent (20%) of the total dwelling units will be restricted and used for lower income students. For each one percent (1%) increase in the percentage of restricted lower income units between twenty and twenty-four percent (20-24%) of total units, a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density.
(2) (1) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this subparagraph means one rental bed and its pro rata share of the associated common area facilities. The units described in this subparagraph shall be subject to an affordability restriction of 55 years, which shall not tie any rental bed reserved for lower income students to a specific bedroom. Notwithstanding any other law, an affordability restriction provision, state or county law or policy, or property management policy shall not prevent a lower income student from sharing a room or unit with a non-lower income student. Any attempted waiver of the requirements of this clause is void as against public policy. (3) (2) All units will be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. (4) (3) The applicant must submits evidence that the applicant entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students from that institution(s) or has established a system for confirming its renters’ status as students to ensure that all units of the student housing development are occupied with students from an institution of higher education.
(5) (4) The rent provided in the applicable units of the development for lower income students shall be calculated at thirty percent (30%) of sixty-five percent (65%) of the area median income for Santa Clara County for a single-room occupancy unit type. (6) (5) The applicant will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person's homeless status may verify a person's status as homeless for purposes of this subclause.
(6) The student housing development must not be located on a site that pursuant to Section 65915(c)(3) of the California Government Code would require replacement units for projects with Item 23
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Temporary Ordinance
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(Zoning) and 21
(Subdivisions and Other
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5 greater than a 35 percent density bonus.
[…]
(i) An Except as provided in subsection (c)(6) of this Section, an applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(1) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 18.15.030. (2) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.
[…]
SECTION 6. Section 18.15.050 (Development Concessions and Incentives) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.050 Development Concessions and Incentives
This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915.
(a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of parking for persons with a disability and guests:
(1) Zero to one bedroom unit: one on-site parking space; (2) Two to three bedroom unit: one and one-half on-site parking spaces; (3) Four or more bedroom unit: two and one-half parking spaces.; (4) One bedspace in a student housing development: zero parking spaces.
If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking.
[…]
(c) Other incentives and concessions. A development is eligible for other concessions or incentives as follows:
(1) One concession or incentive for a development that makes at least ten percent (10%) of the total dwelling units affordable to lower income households; or at least five percent (5%) of the Item 23
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6 total dwelling units affordable to very low income households; or at least ten percent (10%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale; or at least twenty percent (20%) of the total units in a student housing development for low income students, as provided for in 18.15.030(c). (2) Two concessions or incentives for a development that makes at least seventeen percent (17%) of the total dwelling units affordable to lower income households; or at least ten percent (10%) of the total dwelling units affordable to very low income households; or at least twenty percent (20%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale; or at least twenty-three percent (23%) of the total units in a student housing development for low income students, as provided for in 18.15.030(c).
SECTION 7. Section 18.42.180 (Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.42.180 Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9.
(a) Purpose. This section sets forth special regulations applicable to the construction of two dwelling units on single family lots in the R-1 (and R-1 subdistricts) and R-E zone districts, pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the event of a conflict between the provisions of this section and the generally applicable regulations of Chapters
18.10, 18.12, and 18.52-18.80, inclusive, the provisions of this section the more permissive provision shall prevail.
(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact. (2) “Sufficient to allow separate conveyance” means the two dwelling units constitute clearly defined, separate, and independent housekeeping units without interior access points to the other dwelling unit.
(3) “Two dwelling units” means the development proposes two new units on a vacant lot or proposes to add one new unit to one existing unit on a lot. This does not include the development of a single dwelling unit on a vacant lot. (4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(c) Applicability. When an application is submitted that includes both (1) the construction of two dwelling units under this section and (2) other redevelopment work that is not integral to creation of a new dwelling unit and would generally require discretionary review, only the portions required for construction of dwelling units shall be reviewed ministerially. In addition, this section shall not apply in any of the following circumstances:
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Temporary Ordinance
Amending Various
Sections of Titles 18
(Zoning) and 21
(Subdivisions and Other
Divisions of Land)
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7 (1) Parcels described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive, as that section read on September 16, 2021.
Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development).
(2) Parcels on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years.
(3) The development would require alteration or demolition of any of the following types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years. (4) The development would result in the demolition of more than 25 percent of the existing exterior structural walls of a site that has been occupied by a tenant in the last three years.
(5) (4) The development is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory.
(6) (5) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.
(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for the development of dwelling units under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this section.
(3) The director of planning shall consider and approve or deny an application for a proposed housing development pursuant to this section within 60 days from the date the City receives a completed application. If the director has not approved or denied the completed application within 60 days, the application shall be deemed approved.
(4) If the director denies an application for a proposed housing development pursuant to this section, the director shall, within 60 days of receipt of the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
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Attachment A -
Temporary Ordinance
Amending Various
Sections of Titles 18
(Zoning) and 21
(Subdivisions and Other
Divisions of Land)
Item 23: Staff Report
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8 (e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall be subject to the development standards set forth in Chapters 18.12 and 18.10, respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design standards adopted by the City Council for two-story development, except to the extent necessary to construct a unit of 800 square feet. However, an applicant seeking to deviate from the objective design standards (except to the extent necessary to construct a unit of 800 square feet) may elect to submit an application for under the base requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family Individual Review.
(3) If the application of any development standard or design standard would necessarily require that one or more proposed units be less than 800 square feet, such standard shall be relaxed to the minimum extent necessary to allow construction of a unit or units of at least 800 square feet. The Director may publish regulations governing the order in which objective standards shall be waived or relaxed in such circumstances. (4) Setbacks from side and rear property lines, including street-side property lines, shall be no less than four feet, except in the case of existing non-complying structures or structures reconstructed in the same location and to the same dimensions as an existing structure, in which case existing setbacks less than four feet may be maintained. No setback is required from an internal lot line newly created pursuant to Chapter 21.10, for adjacent or connected structures separated by the new lot line, provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.
(5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54. (6) In the event that a project is proposed on a site that has been subject to an Urban Lot Split under Chapter 21.10, and the project would result in three or more detached units across the two parcels created by the urban lot split, any new units shall not exceed 800 square feet.
(7) (6) Accessory structures, such as garages and shed are permitted consistent with the provisions of the zoning district; however, no accessory structure shall have a floor area exceeding 500 square feet.
(8) (7) The Director of Public Works may promulgate standards for adjacent public improvements, such as curb cuts and sidewalks, in relation to development pursuant to this Section.
(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior accessory dwelling units shall not be permitted on any such parcel already containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10, accessory dwelling units may be proposed in addition to the primary dwelling unit or units, consistent with Chapter 18.09, provided, however, that ADUs associated with projects proceeding under this Section shall not receive any exemption from Item 23
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9 Floor Area Ratio except to the minimum extent required by California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to participate in any City survey of properties that have constructed dwelling units pursuant to this Section.
(g) Effective Dates. This section shall remain in effect until such time as Government Code Section 65852.21 is repealed, or superseded, or invalidated by a court of competent jurisdiction, or its requirements for ministerial approval of no more than two units on a single family zoned lot are materially amended, whether by legislation or initiative, at which time this section shall become null and void.
SECTION 8. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of land) of the Palo Alto Municipal Code is amended to read as follows (additions underlined; deletions struck-through):
Chapter 21.10
PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE-FAMILY ZONES
Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 General Requirements
Section 21.10.050 Application and Review of an Urban Lot Split Section 21.10.060 Effective dates
Section 21.10.010 Purpose
This chapter sets forth special regulations applicable to the subdivision of a single family lot in the R-1 district (and R-1 subdistricts) or R-E district into two new lots, pursuant to California Government Code Section 66411.7 (SB 9, 2021).
Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an agreement or understanding, whether formal or informal. (b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed Item 23
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10 complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact.
(c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R-1 district (and R- 1 subdistricts) or R-E district to create no more than two new parcels of approximately equal area, pursuant to this Chapter and California Government Code Section 66411.7.
Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or R-E zone district. Except as modified by this Chapter, all provisions of Title 21 shall apply to an application for urban lot split. An Urban Lot Split is not available in any of the following circumstances:
(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive, as that section read on September 16, 2021. Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development).
(b) A parcel on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years. (c) A parcel that was created by prior exercise of an Urban Lot Split. (d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by the owner, or a person acting in concert with the owner of the parcel sought to be split. (e) The Urban Lot Split would require alteration or demolition of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years. (f) The Urban Lot Split is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory. (g) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.
Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet. (b) The lots created by an Urban Lot Split must be of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
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11 (c) Where existing dwelling units on the property are to remain, no lot line may be created under this Chapter in a manner that would bisect any structure or that would result in more than two dwelling units on any resulting parcel.
(d) Newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure.
(e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits adopted by the City Council and consistent with Chapter 66411.7 of the Government Code. (f) Utility easements shall be shown on the parcel map, and recorded prior to, or concurrent with final parcel map recordation.
(g) A covenant necessary for maintenance of stormwater treatment facilities shall be recorded prior to, or concurrent with final map recordation.
(h) Existing driveways to be demolished shall follow the procedure(s) in 12.08.090 Elimination of abandoned driveway.
(i) A maintenance agreement shall be recorded to ensure shared maintenance of any shared access easements, stormwater treatment, landscaping and private utilities, prior to final parcel map recordation.
Section 21.10.050 Application and Review of an Urban Lot Split (a) The director of planning is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for a parcel map for an Urban Lot Split under this Chapter. An application shall include an affidavit from the property owner, signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or alteration of any of the housing described in Section 21.10.030, subdivision (e). (2) The proposed urban lot split is not on a parcel described in Section 21.10.030. (3) The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30 consecutive days.
(5) The resulting lots will be for residential uses only.
(b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Chapter. Unless more specific regulations are adopted by the director of planning, the parcel map shall be in the form and include all of the information required of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings. (2) That no more than two dwelling units may be permitted on each lot. (3) That rental of any dwelling unit on a lot created by the parcel map shall be for a term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided.
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12 (c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall transmit copies to the city engineer, chief building official, director of utilities, chief of police, fire chief, director of transportation, and such other departments of the city, and any other agencies, as may be required by law or deemed appropriate. (d) The director of planning shall cause a notice of the pending application to be posted at the site of the proposed Urban Lot Split and for notice to be mailed to owners and residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban Lot Split if they determine that the parcel map application meets all requirements of this Chapter. The director of planning shall deny a parcel map application that does not meet any requirement of this Chapter.
(f) The director of planning shall consider and approve or deny an application for an urban lot split within 60 days from the date the City receives a completed application. If the director has not approved or denied the completed application within 60 days, the application shall be deemed approved.
(g) If the director denies an application for an urban lot split, the director shall, within 60 days of receipt of the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
(h) (f) The Director of Planning shall determine the appropriate fee required for an application for parcel map for an Urban Lot Split, which may be the fee currently established for a Preliminary Parcel Map or Parcel Map.
Section 21.10.060 Effective Dates.
This chapter shall remain in effect until such time as Government Code Section 66411.7 is repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a single family zoned lot are materially amended, whether by legislation or initiative, at which time this chapter shall become null and void.
SECTION 9. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low Density Residential (RE, R-2, and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.10.040 Development Standards
[…]
(i) Individual Review
The Individual Review provisions of Section 18.12.110 of the Zoning Ordinance shall be applied to any single-family or two-family residence in the R-2 or RMD districts to those sides of a site that share an interior side lot line with the interior side or rear lot line of a property zoned for or used for single-family or two-family dwellings. The individual review criteria shall be applied only to the project’s effects on adjacent single-family and two-family uses. A project that complies with the objective standards for two-story development adopted by the City Council shall not be subject Item 23
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13 to Individual Review.
[…]
SECTION 10. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.12.040 Site Development Standards
[…]
(m) In addition to the standards contained in and referenced in this Chapter, single-family residential development, including the development of a primary residence and one or more accessory dwelling units and development pursuant to California Government Code Sections 65852.21 and 66411.7 shall comply with the objective standards for two-story development adopted by the City Council. However, an applicant seeking to deviate from the objective standards may submit an application for Single Family Individual Review pursuant to Section
18.12.110.
SECTION 11. Section 18.12.110 (Single Family Individual Review) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.12.110 Single Family Individual Review
[…]
(b) Applicability
The provisions of this Section 18.12.110 apply to the construction that does not comply with the objective standards for two-story development adopted by the City Council. Such projects include construction of a new singly developed two-story structure; the construction of a new second story; or the expansion of an existing second story by more than 150 square feet in the R-1 single family residential district. All second-story additions on a site after November 19, 2001 shall be included in calculating whether an addition is over 150 square feet.
[…]
SECTION 12. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 13. The Council finds that the Ordinance is exempt from the California Environmental Item 23
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14 Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that updating the municipal code to implement existing changes in preemptive state housing law will have a significant effect on the environment.
SECTION 14. This Ordinance shall be effective on the thirty-first day after the date of its adoption and shall expire on December 31, 2025, unless extended by the City Council or superseded by replacement legislation.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
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Ordinance No.
Emergency Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws
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 September 19, 2024, the Governor of the State of California signed Senate Bill 937, effective January 1, 2025. SB 937 allows housing developers to defer payment of impact fees until issuance of a certificate of occupancy and freezes fees at the level in effect at the time of building permit issuance for certain “designated residential development projects,” as defined in the bill.
B. On September 19, 2024, the Governor signed Assembly Bill 2694, effective January 1, 2025. AB 2694 expands the definition of a “senior citizen housing development” in the Density Bonus Law to include a residential care facility for the elderly, as defined.
C. On September 22, 2024, the Governor signed Assembly Bill 3116, effective January 1, 2025. AB 3116 added a definition of “student housing development” to the Density Bonus Law and amended provisions of the Density Bonus Law related to the percentage density bonus and incentives or concessions certain student housing developments must receive.
D. On September 19, 2024, the Governor signed Senate Bill 1211, effective January 1, 2025.
SB 1211 allows up to 8 detached accessory dwelling units (ADUs) on parcels with existing multifamily development and provides that cities can no longer require replacement parking for uncovered parking spaces that are removed for an ADU.
E. On September 19, 2024, the Governor signed Senate Bill 450, effective January 1, 2025.
SB 450 amends SB 9 (codified at Sections 65852.21 and 66411.7 of the California Government Code) to create a 60-day timeframe for approval or denial of an SB 9 application and requires that SB 9 projects be subject to only those objective standards that apply uniformly in the underlying zone.
F. There is insufficient time for consideration of and recommendation on the necessary amendments to Title 18 by the Planning and Transportation Commission (PTC) prior to action by the City Council. The Council therefore declares that an interim ordinance, pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate measure, pending consideration of a permanent ordinance by the PTC.
G. The City Council declares that this emergency ordinance is necessary as an emergency measure to preserve the public, peace, health, or safety by facilitating the City’s Item 23
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compliance with and administration of state housing laws, which will promote the development of much-needed housing in Palo Alto.
SECTION 2. Section 16.64.030 (Deferred Payment) of Chapter 16.64 (Development Fee and In-Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through):
16.64.030 Deferred Payment
For residential development only, payment of a fee may be deferred to the date of final building inspection approval of the development, the development is approved for occupancy. If the development contains more than one dwelling, the fee shall be paid on a pro rata basis for each dwelling when it is approved for occupancy.
The fees may be deferred only if provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The director of planning and development services may execute the agreement on behalf of the city in a form acceptable to the city attorney.
SECTION 3. Section 16.64.040 (Calculation of Fee) of Chapter 16.64 (Development Fee and In-Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
16.64.040 Calculation of Fee
A fee shall be payable at the rate specified in the council-adopted municipal fee schedule in effect on the date the fees are paid, except: (1) an that the applicant for a vesting tentative map for a development project shall pay the fees in effect on the date the application for the vesting tentative map is deemed complete., and (2) an applicant that defers fees for a designated residential redevelopment project, as defined in California Government Code Section 66007, may elect to pay the fees in effect at the time of building permit issuance.
SECTION 4. Section 18.15.020 (Definitions) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.020 Definitions
[…]
(w) “Senior citizen housing development” means a Development consistent with the California Item 23
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Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been “designed to meet the physical and social needs of senior citizens,” and which otherwise qualifies as “housing for older persons” as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as these phrases are used in California Civil Code Sections 51.2, 51.3, and
51.12. For purposes of this Chapter, “senior citizen housing development” includes a shared housing building development and a residential care facility for the elderly, as defined in California Health and Safety Code Section 1569.2.
[…]
(y) “Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations), and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section.
“Shared housing unit” for purposes of a residential care facility for the elderly, as defined in California Health and Safety Code Section 1569.2, includes a unit without an individual kitchen where a unit may be shared by unrelated persons, and a unit where a room that may be shared by unrelated persons meets the “minimum room area” requirements specified in Section R304 of the California Residential Code.
(z) “Student housing development” means a development that contains bedrooms containing two or more bedspaces that have a shared or private bathroom, access to a shared or private living room and laundry facilities, and access to a shared or private kitchen.
(y)(aa) "Total units" or "total dwelling units" means a calculation of the number of units that:
(1) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
(2) Includes a unit designated to satisfy an inclusionary zoning requirement of a city, county, or city and county.
For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, "unit" means one shared housing unit and its pro rata share of associated common area facilities.
(z)(ab) "Very low vehicle travel area" means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, "area" may include a travel analysis zone, hexagon, or grid. For the purposes of determining "regional vehicle miles traveled per capita" pursuant to this paragraph, a "region" is the entirety of incorporated and Item 23
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unincorporated areas governed by a multi- county or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.
SECTION 5. Section 18.15.030 (Density Bonuses) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.030 Density Bonuses
This section describes the density bonuses that will be provided, at the request of an applicant, when that applicant provides restricted affordable units as described below.
[...]
(c) The city shall grant a thirty-five percent (35%) density bonus when an applicant for a student housing development of five (5) or more dwelling units seeks and agrees to construct in accordance with the requirements of this section and Government Code Section 65915: (1) At, in which at least twenty percent (20%) of the total dwelling units will be restricted and used for lower income students. For each one percent (1%) increase in the percentage of restricted lower income units between twenty and twenty-four percent (20-24%) of total units, a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density.
(2) (1) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this subparagraph means one rental bed and its pro rata share of the associated common area facilities. The units described in this subparagraph shall be subject to an affordability restriction of 55 years, which shall not tie any rental bed reserved for lower income students to a specific bedroom. Notwithstanding any other law, an affordability restriction provision, state or county law or policy, or property management policy shall not prevent a lower income student from sharing a room or unit with a non-lower income student. Any attempted waiver of the requirements of this clause is void as against public policy. (3) (2) All units will be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. (4) (3) The applicant must submits evidence that the applicant entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students from that institution(s) or has established a system for confirming its renters’ status as students to ensure that all units of the student housing development are occupied with students from an institution of higher education.
(5) (4) The rent provided in the applicable units of the development for lower income students shall be calculated at thirty percent (30%) of sixty-five percent (65%) of the area median income for Santa Clara County for a single-room occupancy unit type. (6) (5) The applicant will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of Item 23
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subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person's homeless status may verify a person's status as homeless for purposes of this subclause.
(6) The student housing development must not be located on a site that pursuant to Section 65915(c)(3) of the California Government Code would require replacement units for projects with greater than a 35 percent density bonus.
[…]
(i) An Except as provided in subsection (c)(6) of this Section, an applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(1) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 18.15.030. (2) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.
[…]
SECTION 6. Section 18.15.050 (Development Concessions and Incentives) of Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.15.050 Development Concessions and Incentives
This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915.
(a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of parking for persons with a disability and guests:
(1) Zero to one bedroom unit: one on-site parking space; (2) Two to three bedroom unit: one and one-half on-site parking spaces; (3) Four or more bedroom unit: two and one-half parking spaces.; (4) One bedspace in a student housing development: zero parking spaces.
If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking.
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Emergency Ordinance
Amending Various
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Item 23: Staff Report
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[…]
(c) Other incentives and concessions. A development is eligible for other concessions or incentives as follows:
(1) One concession or incentive for a development that makes at least ten percent (10%) of the total dwelling units affordable to lower income households; or at least five percent (5%) of the total dwelling units affordable to very low income households; or at least ten percent (10%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale; or at least twenty percent (20%) of the total units in a student housing development for low income students, as provided for in 18.15.030(c). (2) Two concessions or incentives for a development that makes at least seventeen percent (17%) of the total dwelling units affordable to lower income households; or at least ten percent (10%) of the total dwelling units affordable to very low income households; or at least twenty percent (20%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale; or at least twenty-three percent (23%) of the total units in a student housing development for low income students, as provided for in 18.15.030(c).
SECTION 7. Section 18.42.180 (Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (additions underlined; deletions struck- through; unchanged text omitted by bracketed ellipses):
18.42.180 Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9.
(a) Purpose. This section sets forth special regulations applicable to the construction of two dwelling units on single family lots in the R-1 (and R-1 subdistricts) and R-E zone districts, pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the event of a conflict between the provisions of this section and the generally applicable regulations of Chapters
18.10, 18.12, and 18.52-18.80, inclusive, the provisions of this section the more permissive provision shall prevail.
(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact. (2) “Sufficient to allow separate conveyance” means the two dwelling units constitute clearly defined, separate, and independent housekeeping units without interior access points to the other dwelling unit.
(3) “Two dwelling units” means the development proposes two new units on a vacant lot or proposes to add one new unit to one existing unit on a lot. This does not include the development of a single dwelling unit on a vacant lot.
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Emergency Ordinance
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(Zoning) and 21
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Item 23: Staff Report
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(4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(c) Applicability. When an application is submitted that includes both (1) the construction of two dwelling units under this section and (2) other redevelopment work that is not integral to creation of a new dwelling unit and would generally require discretionary review, only the portions required for construction of dwelling units shall be reviewed ministerially. In addition, this section shall not apply in any of the following circumstances:
(1) Parcels described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive, as that section read on September 16, 2021.
Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development).
(2) Parcels on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years.
(3) The development would require alteration or demolition of any of the following types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years. (4) The development would result in the demolition of more than 25 percent of the existing exterior structural walls of a site that has been occupied by a tenant in the last three years.
(5) (4) The development is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory.
(6) (5) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.
(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for the development of dwelling units under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this section.
(3) The director of planning shall consider and approve or deny an application for a proposed housing development pursuant to this section within 60 days from the Item 23
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Emergency Ordinance
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date the City receives a completed application. If the director has not approved or denied the completed application within 60 days, the application shall be deemed approved.
(4) If the director denies an application for a proposed housing development pursuant to this section, the director shall, within 60 days of receipt of the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall be subject to the development standards set forth in Chapters 18.12 and 18.10, respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design standards adopted by the City Council for two-story development, except to the extent necessary to construct a unit of 800 square feet. However, an applicant seeking to deviate from the objective design standards (except to the extent necessary to construct a unit of 800 square feet) may elect to submit an application for under the base requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family Individual Review.
(3) If the application of any development standard or design standard would necessarily require that one or more proposed units be less than 800 square feet, such standard shall be relaxed to the minimum extent necessary to allow construction of a unit or units of at least 800 square feet. The Director may publish regulations governing the order in which objective standards shall be waived or relaxed in such circumstances. (4) Setbacks from side and rear property lines, including street-side property lines, shall be no less than four feet, except in the case of existing non-complying structures or structures reconstructed in the same location and to the same dimensions as an existing structure, in which case existing setbacks less than four feet may be maintained. No setback is required from an internal lot line newly created pursuant to Chapter 21.10, for adjacent or connected structures separated by the new lot line, provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.
(5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54. (6) In the event that a project is proposed on a site that has been subject to an Urban Lot Split under Chapter 21.10, and the project would result in three or more detached units across the two parcels created by the urban lot split, any new units shall not exceed 800 square feet.
(7) (6) Accessory structures, such as garages and shed are permitted consistent with the provisions of the zoning district; however, no accessory structure shall have a floor area exceeding 500 square feet.
(8) (7) The Director of Public Works may promulgate standards for adjacent public improvements, such as curb cuts and sidewalks, in relation to development pursuant to this Section.
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Emergency Ordinance
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(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior accessory dwelling units shall not be permitted on any such parcel already containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10, accessory dwelling units may be proposed in addition to the primary dwelling unit or units, consistent with Chapter 18.09, provided, however, that ADUs associated with projects proceeding under this Section shall not receive any exemption from Floor Area Ratio except to the minimum extent required by California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to participate in any City survey of properties that have constructed dwelling units pursuant to this Section.
(g) Effective Dates. This section shall remain in effect until such time as Government Code Section 65852.21 is repealed, or superseded, or invalidated by a court of competent jurisdiction, or its requirements for ministerial approval of no more than two units on a single family zoned lot are materially amended, whether by legislation or initiative, at which time this section shall become null and void.
SECTION 8. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of land) of the Palo Alto Municipal Code is amended to read as follows (additions underlined; deletions struck-through):
Chapter 21.10
PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE-FAMILY ZONES
Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 General Requirements
Section 21.10.050 Application and Review of an Urban Lot Split Section 21.10.060 Effective dates
Section 21.10.010 Purpose
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This chapter sets forth special regulations applicable to the subdivision of a single family lot in the R-1 district (and R-1 subdistricts) or R-E district into two new lots, pursuant to California Government Code Section 66411.7 (SB 9, 2021).
Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an agreement or understanding, whether formal or informal. (b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact.
(c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R-1 district (and R- 1 subdistricts) or R-E district to create no more than two new parcels of approximately equal area, pursuant to this Chapter and California Government Code Section 66411.7.
Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or R-E zone district. Except as modified by this Chapter, all provisions of Title 21 shall apply to an application for urban lot split. An Urban Lot Split is not available in any of the following circumstances:
(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive, as that section read on September 16, 2021. Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development).
(b) A parcel on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years. (c) A parcel that was created by prior exercise of an Urban Lot Split. (d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by the owner, or a person acting in concert with the owner of the parcel sought to be split. (e) The Urban Lot Split would require alteration or demolition of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years.
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Emergency Ordinance
Amending Various
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(f) The Urban Lot Split is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory. (g) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.
Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet. (b) The lots created by an Urban Lot Split must be of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
(c) Where existing dwelling units on the property are to remain, no lot line may be created under this Chapter in a manner that would bisect any structure or that would result in more than two dwelling units on any resulting parcel.
(d) Newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure.
(e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits adopted by the City Council and consistent with Chapter 66411.7 of the Government Code. (f) Utility easements shall be shown on the parcel map, and recorded prior to, or concurrent with final parcel map recordation.
(g) A covenant necessary for maintenance of stormwater treatment facilities shall be recorded prior to, or concurrent with final map recordation.
(h) Existing driveways to be demolished shall follow the procedure(s) in 12.08.090 Elimination of abandoned driveway.
(i) A maintenance agreement shall be recorded to ensure shared maintenance of any shared access easements, stormwater treatment, landscaping and private utilities, prior to final parcel map recordation.
Section 21.10.050 Application and Review of an Urban Lot Split (a) The director of planning is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for a parcel map for an Urban Lot Split under this Chapter. An application shall include an affidavit from the property owner, signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or alteration of any of the housing described in Section 21.10.030, subdivision (e). (2) The proposed urban lot split is not on a parcel described in Section 21.10.030. (3) The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30 consecutive days.
(5) The resulting lots will be for residential uses only.
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Emergency Ordinance
Amending Various
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Divisions of Land)
Item 23: Staff Report
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(b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Chapter. Unless more specific regulations are adopted by the director of planning, the parcel map shall be in the form and include all of the information required of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings. (2) That no more than two dwelling units may be permitted on each lot. (3) That rental of any dwelling unit on a lot created by the parcel map shall be for a term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided. (c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall transmit copies to the city engineer, chief building official, director of utilities, chief of police, fire chief, director of transportation, and such other departments of the city, and any other agencies, as may be required by law or deemed appropriate. (d) The director of planning shall cause a notice of the pending application to be posted at the site of the proposed Urban Lot Split and for notice to be mailed to owners and residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban Lot Split if they determine that the parcel map application meets all requirements of this Chapter. The director of planning shall deny a parcel map application that does not meet any requirement of this Chapter.
(f) The director of planning shall consider and approve or deny an application for an urban lot split within 60 days from the date the City receives a completed application. If the director has not approved or denied the completed application within 60 days, the application shall be deemed approved.
(g) If the director denies an application for an urban lot split, the director shall, within 60 days of receipt of the completed application, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can remedy the application.
(h) (f) The Director of Planning shall determine the appropriate fee required for an application for parcel map for an Urban Lot Split, which may be the fee currently established for a Preliminary Parcel Map or Parcel Map.
Section 21.10.060 Effective Dates.
This chapter shall remain in effect until such time as Government Code Section 66411.7 is repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a single family zoned lot are materially amended, whether by legislation or initiative, at which time this chapter shall become null and void.
SECTION 9. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low Density Residential (RE, R-2, and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is Item 23
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Emergency Ordinance
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Item 23: Staff Report
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hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.10.040 Development Standards
[…]
(i) Individual Review
The Individual Review provisions of Section 18.12.110 of the Zoning Ordinance shall be applied to any single-family or two-family residence in the R-2 or RMD districts to those sides of a site that share an interior side lot line with the interior side or rear lot line of a property zoned for or used for single-family or two-family dwellings. The individual review criteria shall be applied only to the project’s effects on adjacent single-family and two-family uses. A project that complies with the objective standards for two-story development adopted by the City Council shall not be subject to Individual Review.
[…]
SECTION 10. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.12.040 Site Development Standards
[…]
(m) In addition to the standards contained in and referenced in this Chapter, single-family residential development, including the development of a primary residence and one or more accessory dwelling units and development pursuant to California Government Code Sections 65852.21 and 66411.7 shall comply with the objective standards for two-story development adopted by the City Council. However, an applicant seeking to deviate from the objective standards may submit an application for Single Family Individual Review pursuant to Section
18.12.110.
SECTION 11. Section 18.12.110 (Single Family Individual Review) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.12.110 Single Family Individual Review
[…]
(b) Applicability
The provisions of this Section 18.12.110 apply to the construction that does not comply with the Item 23
Attachment B -
Emergency Ordinance
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objective standards for two-story development adopted by the City Council. Such projects include construction of a new singly developed two-story structure; the construction of a new second story; or the expansion of an existing second story by more than 150 square feet in the R-1 single family residential district. All second-story additions on a site after November 19, 2001 shall be included in calculating whether an addition is over 150 square feet.
[…]
SECTION 12. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 13. The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that updating the municipal code to implement existing changes in preemptive state housing law will have a significant effect on the environment. //
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Item 23
Attachment B -
Emergency Ordinance
Amending Various
Sections of Titles 18
(Zoning) and 21
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Item 23: Staff Report
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SECTION 14. This ordinance shall be effective immediately upon adoption by a four-fifths vote of the City Council and shall expire on the 31st day after its adoption unless extended by the City Council.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
Item 23
Attachment B -
Emergency Ordinance
Amending Various
Sections of Titles 18
(Zoning) and 21
(Subdivisions and Other
Divisions of Land)
Item 23: Staff Report
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1 Resolution No. ____
Resolution of the Council of the City of Palo Alto Repealing the Objective Design Standards for SB9 Development and Adopting Objective Design Standards for Two-Story Development in the Single Family Zones
WHEREAS, on December 6, 2021, the City Council adopted Urgency Ordinance no. 5538, as well as objective design standards to govern development under the Senate Bill 9 (2021) (SB9), and directed staff to include in work plans of the City’s Architectural Review Board (ARB) and Planning and Transportation Commission (PTC) reviews of these standards; and
WHEREAS, on January 24, 2022 and April 11, 2022, the City Council adopted Interim Ordinance nos. 5542 and 5546, respectively, replacing and amending Ordinance no. 5538.
WHEREAS, on February 8, 2023, the Planning and Transportation Commission reviewed and recommended adoption of a permanent ordinance governing SB 9 projects; and
WHEREAS, on June 12, 2023, the City Council adopted Ordinance no. 5587 governing SB 9 projects;
WHEREAS, on February 12, 2024, the City Council adopted Resolution no. 10150, which set forth objective design standards mandatory for SB9 projects; and
WHEREAS, on September 19, 2024, the Governor of the State of California signed Senate Bill 450, effective January 1, 2025, which specifies that SB9 projects may be subject to only those objective standards that apply uniformly in the underlying zone;
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The City Council repeals the SB9-specific regulations adopted pursuant to Resolution no. 10150 and adopts the attached objective design standards for two-story development in the R-1 zone, as well as single-family development in the RE, R-2, and RMD zones (Exhibit 1), which shall be mandatory unless applicants prefer to apply under the Individual Review program set forth in Palo Alto Municipal Code Sections 18.12.110 and 18.77.075;
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Item 23
Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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2 SECTION 2. The Council finds that the revisions to the objective design standards applicable to single-family zoning districts will facilitate streamlined review of residential development projects and are not considered a project under the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the activity in question may have a significant impact on the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
________________________ ______________________________ City Clerk Mayor
APPROVED AS TO FORM:
________________________ ______________________________ Assistant City Attorney City Manager
_____________________________
Director of Planning and
Development Services
Item 23
Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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Proposed Second Story Objective Design Standards
The following Objective Design Standards apply to all new two-story homes and second story additions 150 sf or larger, unless the homeowner elects to use the Individual Review Process (PAMC 18.12.110,
18.777.075). When existing structures proposed to remain do not meet the Objective Design Standards, the structure shall not be considered non-complying, and the existing condition(s) may remain.
Section A: All Site Planning and Architectural Details
The following ODS apply to all proposed new housing units as a part of an SB 9 project. When existing units do not meet the ODS, they shall be treated as existing non-conforming when proposing remodels.
A1: FRONT SETBACK Where the contextual front yard setback does not apply, the front setback shall be no less than the average front setback of the homes on lots to either side of the subject lot, up to a maximum of 25 feet. Otherwise, the zoning minimum front setback or special setback would still apply.
A2: STUCCO TEXTURE: When stucco is used it shall be steel-troweled ‘Smooth’ or ‘Santa Barbara’ texture as described in the Technical Services Information Bureau, Chapter 5 - Plaster Textures & Acrylic Finishes (2011). For additions, stucco plaster texture on the addition shall be allowed to match the stucco texture of the existing house.
A3: CONTEXTUAL PORCH ENTRIES: If porches (i.e., roofed, street-facing porches with posts/ column(s) and more than 3 feet deep), occur on more than half of the houses on the same side of the block, including the subject site, the proposed house(s) with street frontage shall include a street- facing porch no less than 4.5 feet deep and 6 feet wide.
A4: DRIVEWAYS: One curb cut and driveway per street frontage. Shared driveways are encouraged but require an easement to which the City is a third party.
A5A4: DRIVEWAY WIDTH: 18-foot maximum driveway width (inclusive of uncovered parking) within a front or street side yard setback.
A6: WALKWAY SEPARATION: Walkways shall be separated from driveways by a minimum of 2 feet of landscape planting or shall be a different paving material than the driveway.
A7A5: PLANTING STRIP: A minimum two-foot wide, landscaped planting strip is required between a driveway and/or uncovered parking space and an existing interior lot line.
A8: DRIVEWAY MATERIALS: Driveway and uncovered parking surfaces that exceed 10 feet in width shall not have asphalt or grey concrete surfaces. They must have a decorative surface to blend with the landscape such as stone pavers, grass pavers, or bricks.
A9A6: GARAGE LOCATION: Attached garages adjacent to the front setback must be located a minimum of 5 feet behind the forwardmost plane of the front facade or 3 feet behind the forwardmost plane of the street-side façade. The forwardmost façade plane may be a building wall or porch with posts/columns and must be at least 12 feet wide. In mapped Eichler neighborhoods (see Section E), this standard does not apply.
A10A7: GARAGE WIDTH: An attached garage or carport facing the street shall be no more than 30 percent of the total facade width facing that street, except that it may be 12 feet wide in any circumstance.
A11A8: GARAGE DOOR DESIGN AND MATERIALS: The garage door shall match the material, color, or panel design pattern of the entry door, window fenestration, or exterior cladding material.
Item 23
Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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A12A9: GARAGE DOOR SIZE: When visible from the street, the maximum garage door width shall be 16 feet and the maximum garage door height shall be 8 feet. If two single-wide garage doors are used instead of one double-wide door, each door's maximum width shall be 9 feet and maximum height 8 feet.
A12A10: ROOF DECK NOT PERMITTED: A roof deck (i.e., a deck above the first level of a single-story building or second level of a two-story building) shall not be permitted.
A13A11: ROOF HEIGHT FOR VARIED ROOF PITCHES: Roof height shall be limited to 27 feet for roofs with pitches 9:12 or greater, 25 feet for roofs with pitches 3:12, up to 9:12, and 22 feet for roofs with pitches less than 3:12, inclusive of parapets on flat roofs. In flood zones, the maximum height is increased by one-half of the increase in elevation required to reach base flood elevations, up to a maximum increase of 30 inches.
A14A12: GABLE ROOF FORMS: No more than three gable forms on an elevation facing a public street.
A15A13: BAY WINDOWS: No more than two bay windows on an elevation facing a public street.
A16A14: STREET-FACING WINDOWS: Each street-facing building elevation shall have at least 20 square feet of glazing in a large window, multi-panel window or glazed door, or bay window form, with minimum dimensions of 3 feet. In an Eichler tract, clerestory windows may have a reduced minimum dimension.
A17A15: WINDOW TO WALL DETAILING: Window frames shall be recessed at least 2 inches from the exterior wall face or have trim at least 2 inches wide and 0.5 inches thick on all four window sides.
Stucco over foam shall not be used as window trim.
A18A16: WINDOW PATTERNS: Window fenestration with divided lite appearance shall have exterior applied muntin bars (i.e., true or simulated divided lites).
Section B: Two-Story Houses Second Floor Massing and Privacy The following ODS apply to SB 9 projects that include a new or expanded second story.
B1: SECOND FLOOR LOCATION: The second-floor area shall not be permitted within the standard side or rear setbacks of the underlying single-family zoning district.
B2: SECOND FLOOR SIZE: The maximum second-floor area shall not exceed 35 percent of the allowable gross floor area for the lot, or 400 sf, whichever is larger.
B3: CONTEXTUAL FIRST FLOOR EAVE HEIGHT: The height of the first floor's street-facing roof edges (i.e., eaves or parapets) shall not exceed 18 inches above the height of the first-floor eave or parapet of the homes on the abutting lots at side lot lines as measured at those homes' eaves nearest the subject lot. This first-floor roof edge height limit shall also extend 15 feet back from the building corner. This standard shall be 24 inches within a flood zone if either of the abutting homes’ first-floor levels does not meet current flood zone regulations. This standard applies to the eave side of pitch roof forms and not the rake side such as at a gable.
B4: CONTEXTUAL SECOND FLOOR EAVE HEIGHT: The height of the upper floor's street-facing roof edge (eave or parapet) shall not exceed 18 inches above either: (a) the average height of the upper floor street-facing eave or roof edge of homes to each side, or (b) in the case of only one home having a second floor, the height of that home's eaves.
B5: GARAGE HEIGHT AND MASS: Maximum height of a roof over an attached garage shall not exceed 15 feet in height as measured from existing grade. The maximum garage wall plate height shall not exceed 10 feet.
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Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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B6: SECOND FLOOR BALCONY LIMITATIONS: No more than one second-floor deck/balcony shall be permitted per dwelling and shall: (a) only be permitted on a street-facing facade, (b) be located at least 10 feet from any interior side lot line with a 5.5-foot-tall solid privacy wall or be located at least 30 feet from any interior side lot line, and (c) be limited in size to no more than 40 square feet.
B7: SCREENING LANDSCAPE: For two-story houses, plant screening trees with a species having a typical mature height of at least 25 feet and mature canopy width of 15 feet at a quantity of at least one per 25 linear feet along each interior lot line. Existing trees to be retained that are at least 25 feet tall and 15 feet wide count towards the required planting. Three closely spaced tall screening shrubs with a mature height of at least 15 feet and a mature width of at least 3 feet may be substituted for one screening tree.
Privacy screening landscape shall be located to align with proposed second-floor windows across the side and rear lot lines and between windows at facing units on a single property.
B8: PLANTING TYPE AND SIZE: When required, screening trees and shrubs shall be specified by botanical name with at least 50 percent of screening trees and shrubs being evergreen. Screening trees shall be specified and planted at 24-inch box size or larger and 8 feet height or taller. Screening shrubs shall be specified and planted at 15-gallon size or larger and 8 feet or taller.
B9: PLANTING ADJACENT PUE’S: Where an easement such as a PUE exists along an interior lot line, privacy landscaping is required to be planted on the same side of the easement as the building, but not within the easement.
B10: SECOND FLOOR WINDOW PRIVACY: For any window on an upper floor or in a stairway, facing an interior lot line that is located less than 20 feet from a side or rear lot line, one of the following shall be used: (a) permanent obscure glazing to at least 5 feet from the finished floor, or (b) exterior mounted permanent architectural privacy screens that block views more than 70%, or (c) windows with sills above 5 feet from the finished floor level. In a stairway, the finished floor is the height of the landing.
This standard shall also apply to first-floor windows less than 6 feet from a property line where the finished floor height is 2 feet or more above grade.
B11: SECOND FLOOR OPERABLE WINDOWS ALONG SIDE LOT LINES: Operable casement windows on the upper level with a sill height less than 5 feet above the finished floor and within 20 feet of an interior side lot line shall be hinged so the windows open towards the public street. Horizontal sliding windows shall not be permitted facing and within 20 feet of an interior side lot line, unless the windowsill height is at least 5 feet above the finish floor level.
Section C: New or Expanded Second Story Development Next to One-Story House(s) The following Standards apply when an SB 9 project includes a new or expanded second story adjacent to an existing one-story house.
C1: SIDE DAYLIGHT PLANE CLEARANCE: Where a home on an abutting lot across a side lot line is single- story or has a second-floor area no more than 500 square feet, the side daylight plane shall be measured from 8 ft above average grade instead of 10 ft. In the case of an Urban Lot Split, the daylight plane only applies to the original property lines.
In flood zones, the average grade for determining daylight plane is increased by one-half of the increase in elevation required to reach base flood elevations, up to a maximum increase of 30 inches.
Item 23
Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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C2: SINGLE-STORY BUILDING FORMS: Where a home on an abutting lot across a side lot line is single- story or has a second-floor area no more than 500 square feet, all houses with frontage on the street shall have either: (a) a one-story building form (excluding garages) at least 6 feet forward of the second-floor wall face, and at least 10 feet wide; or (b) a protruding porch or one-story roof overhang at least 6 feet deep, and at least 8 feet wide.
Section D: Flag Lots and Substandard Lots
The following ODS applies only for projects proposed on an existing flag lot or substandard lot. A lot created by an Urban Lot Split is not subject to this.
PAMC 18.12.040(c) prohibits second floors on houses on substandard lots. Second stories are only allowed as a part of an SB 9 project, subject to Standard D1 below.
D1. SECOND FLOOR AREA ON FLAG LOTS AND SUBSTANDARD LOTS: On lots that are flag lots (or similar lots without street frontage) and/or substandard lots prior to an Urban Lot Split, a second floor shall only be allowed to facilitate the minimum 800 sf unit size.
Section E: Eichler Neighborhoods
The following ODS apply only in mapped Eichler Tracts, as listed on the map published in the Eichler Design Guidelines (2018)
E1: EICHLER TRACT GARAGES: In mapped Eichler Tracts, a garage or carport may be located forward of the front facade plane of the house so long as the garage or carport is: (a) no more than 21 feet wide, (b) has a roof pitch of 3:12 (slope of 3 vertical feet for every 12 horizontal feet) or less, and (c) has a maximum height of no more than 12 feet above existing grade.
E2: EICHLER TRACT GARAGES: In mapped Eichler Tracts, the garage may also count as the required 1- story form in ODS A9.
E3E2: EICHLER TRACT ROOF HEIGHTS: In mapped Eichler Tracts the maximum roof height shall not exceed 22 feet, as measured from existing grade to the roof surface. Properties in flood zones shall be permitted to increase building height by one-half foot for each foot that the base flood elevation exceeds the existing grade.
E4E3: ROOFLINES IN EICHLER TRACTS: In mapped Eichler Tracts rooflines shall meet the following: (a) roof pitches no more than 3:12, (b) gable, shed, butterfly, or flat roof forms, and (c) 2- foot minimum overhangs at eave and rake sides of roof forms for at least 50 percent of roof edges.
E5E4: EXTERIOR MATERIALS IN EICHLER TRACTS: In mapped Eichler Tracts, exterior wall cladding shall be vertical board channel or flush siding, wood tongue, and groove board siding, wood nickel-gap siding, smooth fiber cement panels, or metal panels. Board-form concrete, concrete block, or stucco may be used as a secondary material, but collectively, these materials shall not account for more than 30 percent of all non-glazed wall surfaces.
E6E5: ENTRIES IN EICHLER TRACTS: In mapped Eichler Tracts, a projecting entry porch shall not be used. A covered trellis used as a colonnade or a side porch that does not project forward of the facade at the entry would not be considered an entry porch.
Item 23
Attachment C - Resolution
Repealing SB 9 Objective
Design Standards and
Replacing Them with
Single Family Objective
Standards
Item 23: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 16, 2024
Report #:2412-3848
TITLE
REINTRODUCED FIRST READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) to Clarify Existing Regulations and to Implement State Housing Laws Adopted in 2023 and Earlier. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED:
November 12, 2024 PASSED 6-1, Kou no)
RECOMMENDATION
Adopt the attached ordinance clarifying existing regulations and implementing state housings laws adopted in 2023 and earlier.
BACKGROUND
On November 12, 2024, the City Council provided direction to staff on the implementation of AB 2097 and adopted an ordinance on first reading that amended the Palo Alto Municipal Code to incorporate a variety of state housing laws, including AB 2097.
The Council motion was, in pertinent part:
1. Require ADA / EVCS parking based on the full amount that would have been required if AB 2097 did not apply.
2. Adopt the attached ordinance implementing state law and other minor amendments to Titles 18 and 21 of the municipal code, except as modified by the prior motion on AB 2097
ANALYSIS
The City Council direction on AB 2097 differed from the staff recommendation and the draft ordinance attached to the November 12 report. As a result, staff have revised the ordinance to reflect City Council direction (see page 5 of the attached ordinance).
As part of this effort, staff found it was necessary to better define the term “full amount” of parking used in the Council motion. Both local and state laws offer a variety of parking adjustments based on factors such as on-site amenities, transportation demand management plans, and the amount of affordable housing provided. Staff resolved this question in the Item 24
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proposed ordinance by applying the maximum amount of parking adjustments in determining the “full amount” of parking. Because this is a substantive issue that was not previously discussed, staff is presenting the ordinance for a new first reading.
In addition, staff have added a provision to the ordinance clarifying that this change will not apply to projects that have been deemed complete for a planning entitlement prior to the effective date of the ordinance. This will avoid situations where an applicant has expended significant time and resources based on the staff’s prior interpretation of AB 2097, only to have the project scuttled at a late stage. One example of this issue is 640 Waverley. This mixed-use project with four dwelling units is proposing six parking spaces, of which one is an accessible space and four are EV-ready. Under the proposed ordinance, the project would need to provide nine spaces, including two van-accessible spaces, and seven EV-ready spaces. Given the physical constraints associated with this downtown site, the additional requirement would require a complete redesign of the project and would likely render it infeasible. Another example is the former Antonio’s Nut House project, which is currently designed with one accessible parking space and one other publicly available space. With the Council’s direction, both of those spaces would been required to be accessible spaces. This project, however, has already received a building permit and will not be subject this requirement.
POLICY IMPLICATIONS
For properties within the Downtown parking district, applicants will have an opportunity to participate in the City’s in-lieu parking program for commercial development under the City’s current standards; residential projects would need to provide on-site ADA and EV parking in accordance with the Council’s direction. As illustrated above for the 640 Waverley project and documented in the prior staff report, this may make housing development on smaller lots unlikely.
For properties in the California Avenue area within one-half mile from the Caltrain station, the interchangeability of land uses, such as transitioning from retail to restaurant will be constrained for some sites. An intensification of land use typically requires additional parking, and the first parking spaces are dedicated to accessible parking. Many smaller lots in this area seeking to establish a restaurant or higher intensity land use may be impacted by this action until such time the City establishes a uniform parking requirement for retail and retail-like uses; tentatively scheduled to occur around June 2025.
In other areas not subject to AB 2097, staff will continue to impose an accessibility and electric vehicle parking requirement based on the amount of parking provided on-site as part of the development. An example of this is with the affordable housing project at 525 Charleston Avenue. This approach is consistent with local and state law requirements.
FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any significant fiscal or resource impacts to the City.
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STAKEHOLDER ENGAGEMENT
The City Council held a public hearing on this ordinance on November 12, 2024 and provided direction to staff to implement the subject ordinance.
ENVIRONMENTAL REVIEW
The recommendation in this report is exempt from environmental review in accordance with the California Environmental Quality Act Guidelines Section 15061(b)(3) in that it can be seen with certainty that the proposed action does not have an impact on the environment and continues the status quo.
ATTACHMENTS
Attachment A: Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) to Clarify Existing Regulations and to Implement Recent State Housing Laws
APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 24
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3 Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Clarify Existing Regulations and to Implement Recent State Housing Laws
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On October 11, 2023, the Governor of the State of California signed Senate Bill 684, effective July 1, 2024. SB 684 requires the ministerial approval of certain subdivision maps, planning entitlements, and building permits for developments of up to 10 residential units.
B. On October 11, 2023, the Governor signed Senate Bill 4, effective January 1, 2024. SB4 requires housing development projects to be "use by right" on land owned by independent higher education or religious institutions, given certain conditions.
C. On October 11, 2023, the Governor signed Assembly Bill 894, effective January 1, 2024.
AB 894 requires local agencies to approve shared parking agreements that meet criteria specified in the bill.
D. On September 22, 2022, the Governor signed Assembly Bill 2097, effective January 1, 2023. AB 2097, subject to certain limited exceptions, prohibits public agencies from imposing or enforcing a minimum parking requirement on a residential, commercial, or other development project that is within one- half mile of defined “public transit” E. On October 8, 2021, the Governor signed Assembly Bill 970, effective as to Palo Alto on January 1, 2023. AB 970 limits the discretion of local agencies when reviewing applications to install electric vehicle charging stations.
F. On September 25, 2018, the Governor signed Assembly Bill 2162, effective January 1, 2019. AB 2162 makes certain supportive housing projects a use by-right in all zones that permit multifamily residential uses. Although the City has been implementing this bill since 2019, Program 6.5(D) of the 2023-2031 Housing Element requires the City to incorporate the bill in the zoning code.
G. Upon recommendation of City Staff and the Planning and Transportation Commission, the Council of the City of Palo Alto desires to adopt regulations responding to and implementing these state laws.
H. Upon recommendation of City Staff and the Planning and Transportation Commission, the Council further desires to make non-substantive clarifications to existing provisions of the Palo Alto Municipal Code.
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 SECTION 2. Section 18.42.185 (Standards for Up to Ten Units on Lots Subdivided Pursuant to Senate Bill 684) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added as follows:
18.42.185 Standards for Up to Ten Units on Lots Subdivided Pursuant to Senate Bill 684 (a) Purpose and Applicability
This section implements California Government Code Sections 65852.28, 65913.4.5, and 66499.41 (Senate Bill 684, 2023) by establishing regulations for development of up to ten units on lots subdivided pursuant to Chapter 21.11.
(b) Review Qualifying Development Proposals
(1) Housing development projects on a lot or lots subdivided pursuant to Chapter 21.11 and California Government Code Section 66499.41 shall be ministerially reviewed and processed through the City’s Ministerial and By Right Review Process (set forth in PAMC Section 18.77.074), in accordance with Government Code Section 68582.28. (2) Building permits for such projects may be issued prior to recordation of a final map, in accordance with Government Code Section 65913.4.5.
(c) Development and Design Standards
(1) Housing development projects shall be subject to the development standards set forth in the applicable zone district.
(2) Proposed parcels containing up to two units shall comply with all objective standards for SB 9 projects, as adopted by the City Council, the Director of Planning and Development Services, or the Director of Public Works, except that no setback shall be required between units unless in accordance with the California Building Code, as locally amended.
(3) Proposed parcels containing three or more residential units or mixed uses shall comply with Chapter 18.24 (Contextual Design Criteria and Objective Design Standards).
SECTION 3. Section 18.77.074 (Ministerial and By Right Review Process) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.77.074 Ministerial and By Right Review Process
(a) Purpose and Applicability
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 (1) This section is intended to define a streamlined, ministerial review process for qualifying Housing Development Projects that are submitted pursuant to streamlining provisions of state law, such as in AB 2162 (2018), AB 1397 (2017), and SB 35 (2017). This section shall apply to multi-family residential projects that are subject to ministerial review or defined as a “use by right” in state law, including, but not limited to, Government Code sections 65651, 65583, 65583.2, and 65913.4. This section does not apply to the creation of an accessory dwelling unit and/or junior accessory dwelling unit. (2) The review required by this section shall not involve the exercise of discretion in a manner that would constitute a “project” for purposes of the California Environmental Quality Act (CEQA). This section does not, however, excuse a project involving a subdivision from compliance with Title 21 and the subdivision map processes set forth therein, which may result in a “project” for purposes of CEQA.
[. . .]
SECTION 4. Chapter 21.11 (Streamlined Subdivisions Resulting in Ten or Fewer Parcels) of Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code is hereby added as follows:
21.11.010 Purpose
This chapter implements California Government Code Section 66499.41 (Senate Bill 684, 2023) by establishing regulations for the ministerial subdivision of up to ten lots.
21.11.020 Applicability
This chapter applies only to proposed subdivisions that meet all of the requirements of California Government Code Section 66499.41. A tentative map and final map shall be required for all subdivisions under this Chapter, regardless of the number of parcels created.
21.11.030 Review
Qualifying tentative map applications shall be reviewed and processed ministerially in accordance with California Government Code Section 66499.41. Final maps shall be reviewed and processed in accordance with Chapter 21.16, except that a final map under this section may be approved by the City Engineer and Director of Planning and Development Services.
21.11.040 Objective Subdivision Standards
The Director of Planning and Development Services may adopt administrative regulations to create objective subdivision standards or clarify existing standards that apply to subdivisions under this section.
21.11.050 Accessory Dwelling Units Prohibited
Accessory Dwelling Units and Junior Accessory Dwelling Units shall not be permitted on lots created pursuant to this section.
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 SECTION 5. Section 18.14.060 (By Right Affordable Supportive Housing Projects) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added as follows:
18.14.060 By Right Affordable Housing and Supportive Housing Projects (a) Affordable Housing on Higher Education and Religious Lands (1) Notwithstanding any conflicting provision of this Title 18 or the Comprehensive Plan, a qualifying housing development project under California Government Code Section 65913.16 shall be a use by right.
(2) Housing development projects utilizing this section in the R-1 Single-Family Residential District and the Low Density Residential Districts shall be subject to the development standards for the RM-30 zoning district, except that maximum Floor Area Ratio (FAR) shall be 1.25.
(3) All housing development projects utilizing this section shall comply with Chapter
18.24 (Contextual Design Criteria and Objective Design Standards). (b) Supportive Housing in Multi-family and Mixed-use Zones (1) Supportive housing shall be a use by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed housing development satisfies all of the requirements of California Government Code Sections 65650-65656.
(2) All housing development projects utilizing this section shall comply with Chapter
18.24 (Contextual Design Criteria and Objective Design Standards). (c) Provided they comply with the City’s objective standards, by-right projects under this section shall not be subject to any discretionary review nor environmental review under the California Environmental Quality Act. By-right projects under this section shall be processed in accordance with Section 18.77.074.
SECTION 6. Sections 18.52.030 (Basic Parking Regulations), 18.52.040 (Off-Street Parking, Loading and Bicycle Facility Requirements), 18.52.045 (Adjustments to Existing Parking Facilities),
18.52.050 (Adjustments by the Director), and 18.52.070 (Parking Regulations for CD Assessment District) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through, and unchanged text omitted by bracketed ellipses):
18.52.030 Basic Parking Regulations
[. . .]
(i) Transportation Demand Management Plan
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 (1) Requirement for TDM Plan: A Transportation Demand Management (TDM) Plan to reduce and manage the number of single-occupant motor vehicle trips generated by the project shall be prepared and submitted by the applicant in the following circumstances:
A. For all projects that generate 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips;
B. For all projects claiming a reduction in net new trips due to proximity to public transit or the implementation of a TDM plan; and
C. For all projects requesting a parking reduction.
D. For all projects with reduced parking pursuant to California Government Code Section 65863.2 (AB 2097, 2022).
(2) The Director shall have the authority to adopt guidelines for preparing TDM plans and when applicable shall coordinate such guidelines with the Transportation Management Association.
18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements (a) Parking Requirements
In each district, off-street parking, loading and bicycle facilities for each use shall be provided in accordance with Tables 1 and 2, shown in subsection (c) of this Section 18.52.040. For affordable housing developments qualifying for density bonuses under Chapter 18.15 of the Palo Alto Municipal Code, adjustments to parking requirements will be calculated in accordance with Chapter 18.15. The requirement for any use not specifically listed shall be determined by the director on the basis of requirements for similar uses, and on the basis of evidence of actual demand created by similar uses in Palo Alto and elsewhere, and such other traffic engineering or planning data as may be available and appropriate to the establishment of a minimum requirement.
(1) For projects within one-half mile of public transit, as defined in California Government Code Section 65863.2:
(A) The project shall provide loading and bicycle parking facilities in accordance with this Section.
(B) The project shall provide the number of EVSE-installed parking spaces and parking spaces that are accessible to persons with disabilities that would be required if on-site parking were provided in accordance with this Section and in the absence of Government Code Section 65863.2.
(i) When determining the amount on-site parking that would have been required in the absence of Government Code Section 65863.2, the maximum applicable adjustments pursuant to Section 18.52.050 or Chapter 18.15 shall be included.
(C) Except as provided in this subdivision (a)(1), no off-street parking shall be required.
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 [. . .]
(d) Residential and mixed use structures with fifty (50) or more dwelling units shall provide at least one (1) on-site, short-term loading space for passenger vehicles, to be used by taxicabs and similar transportation and delivery services. Unless an adjustment is approved pursuant to Section 18.52.050, projects providing only the automobile parking required by subdivision (a)(1)(B) shall provide one (1) on-site, short-term loading space for passenger vehicles, to be used by taxicabs and similar transportation and delivery services.
18.52.045 Adjustments to Existing Parking Facilities
(a) The following minor adjustments may be made to existing parking facilities that are intended to remain in substantially the same form after restriping. (1) Accessibility and EVSE-related equipment.
For sites with existing development, the number on-site parking spaces may be reduced to the minimum extent necessary to: (1) achieve state or federally mandated accessibility requirements or (2) permit installation of electric vehicle charging stations, as defined in California Government Code Section 65850.7.electrical utility equipment required for EVSE. A maximum of 10% of the existing automobile parking stalls, or one stall, whichever is greater, may be removed to accommodate accessibility requirements. pursuant to this section. The loss of a parking space is not permitted to accommodate EVSE itself. To the extent reasonably feasible, e Electrical equipment required for EVSE shall should be placed in a location that minimizes visibility from the public right-of-way. [. . .]
18.52.050 Adjustments by the Director
Automobile parking and off-street loading requirements prescribed by this chapter may be adjusted by the director in the following instances and in accord with the prescribed limitations in Table 4, when in his/her opinion such adjustment will be consistent with the purposes of this chapter, will not create undue impact on existing or potential uses adjoining the site or in the general vicinity, and will be commensurate with the reduced parking demand created by the development, including for visitors and accessory facilities where appropriate. No reductions may be granted that would result in provision of less than ten (10) spaces on a site. The following are adjustments that apply to developments not located within a parking assessment district. Adjustments within the parking assessment districts are contained in Section
18.52.080. The decision of the regarding parking adjustments may be appealed as set forth in Chapter 18.78 (Appeals).
[. . .]
(e) Shared Parking Agreements
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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3 Notwithstanding the limitations set forth in Table 4, subdivision (a), and subdivision (c) of this Section, the Director shall approve a parking adjustment where the applicant meets all of the requirements of California Government Code Section 65683.1, including but not limited to, preparation of a parking analysis and a recorded shared parking agreement. [. . .]
18.52.070 Parking Regulations for CD Assessment District [. . .]
(f) Minor Adjustments to Existing Parking Facilities
The following minor adjustments may be made to existing parking facilities that are intended to remain in substantially the same form after restriping. (1) Accessibility and EVSE-related equipment.
For sites with existing development, the number on-site parking spaces may be reduced to the minimum extent necessary to: (1) achieve state or federally mandated accessibility requirements or (2) permit installation of electric vehicle charging stations, as defined in California Government Code Section 65850.7. electrical utility equipment required for EVSE. A maximum of 10% of the existing automobile parking stalls, or one stall, whichever is greater, may be removed to accommodate accessibility requirements. pursuant to this section. The loss of a parking space is not permitted to accommodate EVSE itself. To the extent reasonably feasible, e Electrical equipment required for EVSE shall should be placed in a location that minimizes visibility from the public right-of-way. [. . .]
SECTION 7. Footnote 3 to Table 3 of Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; unchanged text omitted by bracketed ellipses):
18.18.060 Development Standards
[. . .]
TABLE 3
MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS
[. . .]
Footnotes:
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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(3) FAR may be increased with transfers of development, increased floor area for housing development projects with 3-10 residential units pursuant to 18.18.065, and/or bonuses for seismic and historic rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD-C subdistrict or 2.0:1 in the CD-S or CD-N subdistrict. [. . .]
SECTION 8. Chapter 18.30(F) (Automobile Dealership (AD) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; unchanged text omitted by bracketed ellipses):
Chapter 18.30(F) AUTOMOBILE DEALERSHIP (AD)COMBINING DISTRICT REGULATIONS [. . .]
18.30(F).040 Permitted Uses
The following uses shall be permitted in the (AD) combining district:
(a) Automobile dealerships.
(b) All other uses permitted in the underlying district.
18.30(F).045 Conditional Uses
The following uses may be conditionally permitted in the (AD) district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) All other conditional uses allowed in the underlying district. [. . .]
SECTION 9. Section 18.42.040 (Late Night Uses and Activities) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through):
18.42.040 Late Night Uses and Activities
(a) Purpose
The purpose is to restrict retail or service commercial businesses abutting (either directly or across the street) or within 50 feet of residentially zoned properties or properties with existing residential uses located within nonresidential zones, with operations or activities between the hours of 10:00 p.m. and 6:00 a.m. Operations subject to this code may include, but are not limited to, deliveries, parking lot and sidewalk cleaning, and/or clean up or set up operations, but does not include garbage pick up.
(b) Requirements
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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4 9
3 (1) Retail (including restaurants) or service commercial businesses abutting or within 50 feet of residentially zoned properties or properties with existing residential uses located within nonresidential zones, that are open or with operations or activities between the hours of 10:00 p.m. and 6:00 a.m. shall be operated in a manner to protect residential properties from excessive noise, odors, lighting or other nuisances from any sources during those hours. (2) Where planning or building permits are required or for a change in use that results in any such commercial business in the CN, or CS, NV-MXM, and NV-MXH zone districts, operating or with activities between the hours of 10:00 p.m. and 6:00 a.m., a conditional use permit shall be obtained and conditions of approval shall be applied as deemed necessary to ensure the operation is compatible with the abutting (or within 50 feet of) residential property. Said use permit shall be limited to operations or activities occurring between 10:00 p.m. and 6:00 a.m.
SECTION 10. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 11. The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that updating the municipal code to incorporate existing changes in State Density Bonus Law will have a significant effect on the environment.
SECTION 12. This Ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________ Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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10 4
4 9
3 City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 24
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws
Item 24: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: December 16, 2024
Report #:2411-3811
TITLE
SECOND READING: Adoption of an Interim Ordinance Amending Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of the Palo Alto Municipal Code to Implement High Priority Retail Revitalization Measures and Direction; Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) (FIRST READING: November 18, 2024 PASSED 7-0)
BACKGROUND
The City Council heard this item on November 18, 2024 for a first reading and approved it on a 7-0 vote. The attached ordinance was updated to reflect the City Council’s motion, and it is now before the City Council for a second reading.
ATTACHMENTS
Attachment A - Temporary Ordinance of the Council of the City of Palo Alto Amending Chapters
18.04, 18.16, 18.30(A), and 18.30(C) of the Palo Alto Municipal Code to Immediately Implement High Priority Retail Revitalization Measures
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 25
Item 25 Staff Report
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Ordinance No. _____
Temporary Ordinance of the Council of the City of Palo Alto Amending Chapters
18.04, 18.16, 18.30(A), and 18.30(C) of the Palo Alto Municipal Code to Immediately Implement High Priority Retail Revitalization Measures
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. Like many communities, the City of Palo Alto has experienced high vacancy rates in retail districts, which have been compounded by challenges associated with the COVID -19 pandemic as well as ongoing retail trends. Accordingly, the City Council has included retail revitalization as a Council priority for the past several years.
B. Throughout 2023 and 2024, City staff, the Planning and Transportation Commission (PTC), and the City’s consultant Michael Baker International (MBI) worked together to develop a Retail Study Report intended to inform a citywide retail zoning strategy.
C. On September 18, 2024, the City Council Retail Committee reviewed the Final Draft Retail Study Report and provided direction to staff on several zoning amendments should be implemented immediately to support retail and retail-like uses in the City.
D. Although the PTC held six hearings on the Retail Study (in addition to four meetings of the PTC retail ad hoc committee), the PTC has not yet considered or recommended specific, proposed amendments to Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC).
E. The City Council finds that there is insufficient time for the PTC to consider and recommend those amendments identified by the City Council Retail Committee for immediate implementation. The Council therefore finds that an interim ordinance pursuant to PAMC Section 18.80.090 is an appropriate measure, pending consideration of a permanent ordinance by the PTC. Upon recommendation of City Staff and the Planning and Transportation Commission, the Council of the City of Palo Alto desires to adopt regulations responding to and implementing these state laws.
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Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 1 8 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings ascribed in this section.
[. . .]
(12.5) "Automobile dealership" means a use primarily engaged in sale, lease, service, or minor repair of new and used automobiles and trucks. Other accessory services incidental and supporting auto sales include service bays for engine, transmission, air conditioning, and minor painting, body and fender repair, car wash, auto rental, and similar services.
(12.6) “Automobile showroom” means a use primarily engaged in the sale of new and used automobiles and trucks, or the display and demonstration of automobiles and trucks for the purpose of facilitating sales, but which does not involve on-site storage of inventory, except as incidental to the showroom use. Automobile showroom serves primarily pedestrian clientele and is distinct from Automobile Dealership.
[. . .]
(56) “Financial service” means a use providing financial services to individuals, firms, or other entities. The term “financial service” includes banks, savings and loan institutions, loan and lending institutions, credit unions and similar services.
(A) “Retail financial service” means a financial service use operating in a retail-oriented manner, offering face -to-face interactions, and convenient in -person transactions in locations designed for public access. These services includes retail banks, savings and loan institutions, loan and lending offices, credit unions, and similar services that prioritize walk- in customers with access to immediate financial solutions or combined with a publicly accessible retail component.
[. . .]
(57.6) “Formula retail business” means an retail, personal, or eating and drinking service that is one of ten (10) fifty (50) or more business locations in the State of California United States required by contractual or other arrangement to maintain any of the following standardized characteristics: merchandise, menu, services, decor, uniforms, architecture, facade, color scheme, signs, trademark, or servicemark. For purposes of this definition:
(A) “Standardized merchandise, menu and/or services” means 50% or more of in - stock merchandise from a single distributor bearing the same or similar markings; 50% or Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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more of menu items identical in name and presentation with other locations; or 50% or more of services offered identical in name or presentation with other locations. (B) “Decor” means the style of interior furnishings, which may include but is not limited to, style of furniture, wall coverings or permanent fixtures. (C) “Color Scheme” means the selection of colors used throughout, such as on the furnishings, permanent fixtures, and wall coverings, or as used on the facade. (D) “Uniforms” means standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name tags) as well as standardized colors of clothing.
(E) “Facade” means the face or front of a building, including awnings, looking onto a street or an open space.
(F) “Trademark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods from one party from those of others.
(G) “Servicemark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of a service from one party from those of others.
[. . .]
(125.1) “Retail-like use” means a use generally open to the public during typical business hours and predominantly engaged in providing services closely related to retail services, including but not limited to:
(A) Eating and drinking services, as defined in subsection (47); (B) Hotels, as defined in subsection (73);
(C) Personal services, as defined in subsection (114); (D) Theaters;
(E) Travel agencies;
(F) Commercial recreation, as defined in subsection (33); (G) Commercial nurseries;
(H) Automobile showrooms dealerships, as defined in subsection (12.5 12.6); and (I) Day care centers, as defined in subsection (42). ; (J) Retail financial services, as defined in subsection (56)(A); (K) Other commercial uses, services, or activities determined by the Director of Planning and Development Services to be accessible to the general public, generate walk -in pedestrian clientele, and provide a substantial contribution to pedestrian activity.
[. . .]
SECTION 3. Sections 18.30(A).040 (Permitted Uses) and 18.30(A).050 (Conditional Uses), and 18.30(A).070 (Waivers and Adjustments) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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bracketed ellipses):
18.30(A).040 Permitted Uses
Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the following uses shall be permitted in an R district:
(a) Eating and drinking services, except drive-in and take-out services. (b) Personal services, except the following on California Avenue: beauty shops; nail salons; barbershops; laundry and cleaning services as defined in Section 18.04.030(114)(B); fitness or exercise studios exceeding 1,800 square feet in gross floor area ; and learning centers intended for individual or small group settings.
(c) Retail services.
(d) Retail financial services, except drive-in services. (e) Pet grooming services.
(f) Automobile showroom.
(d)(f) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor.
18.30(A).050 Conditional Uses
The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) Financial services, except drive-in services, on a ground floor. (b) (a) All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor.
(c) (b) Formula retail businesses on California Avenue. (d) (c) Beauty shops, nail salons, barbershops, f Fitness or exercise studios exceeding 1,800 square feet in gross floor area on California Avenue; and learning centers intended for individual or small group settings.
[. . .]
18.30(A).070 Waivers and adjustments.
(a) The following shall be grounds for a request for waiver or adjustment of this Ordinance Chapter:
(a) (1) Economic Hardship. An applicant may request that the requirements of this Ordinance Chapter be adjusted or waived only upon a showing that strict application would result in an unreasonable financial burden on the property. applying the requirements of this Ordinance would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.
(2) Alternative Viable Use. An applicant may request that the requirements of this Chapter
18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail -like use is not viable; the proposed alternative use will support the purposes of the combining district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections.
(b) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this section and shall set forth in detail the Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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factual and/or legal basis for the claim, including all supporting technical documentation. Any request under this section shall be submitted to the Planning and Development Services Community Environmental Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request under this section shall be acted upon by the City Council.
SECTION 4. Sections 18.30(C).020 (Permitted Uses) and 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended , and Section 18.30(C).0 50 (Waivers and adjustments) is hereby added as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):
18.30(C).020 Permitted Uses
(a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for the following on parcels with frontage on University Avenue:
fitness and exercise studios exceeding 3,000 square feet in gross floor area, where uses defined in Section 18.04.030(114)(B), (G),(H), and (I) are not permitted; (4) Retail services;
(5) Theaters;
(6) Travel agencies;
(7) Commercial recreation up to 5,000 square feet in gross floor area, except for parcels with frontage on University Avenue;
(8) Retail financial services, except drive-in services; (9) Pet grooming services;
(10) Automobile showroom;
(8) (11) All other uses permitted in the underlying district, provided such uses are not on the ground floor.
(b) Elimination or conversion of basement space currently in retail or retail -like use or related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non -ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the ground floor use(s), and subject to the approval of the Director.
18.30(C).030 Conditional Uses
(a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160:
(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with frontage on University Avenue;
Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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(3) Day care;
(4) Financial services, except drive in services;
(5 4) General business service;
(6) Learning centers intended for individual or small group settings; (7 5) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor.
(b) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the findings required by Chapter 18.76 (Permits and Approvals):
(1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district.
(2) The proposed use will not be determined to the retail environment or the pedestrian - oriented design objectives of the GF combining district. (c) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which the finding set forth in subsection (b) was made.
[. . .]
18.30(C).050 Waivers and adjustments.
(a) The following shall be grounds for a request for waiver or adjustment of this Chapter:
(1) Economic Hardship. An applicant may request that the requirements of this Chapter be adjusted or waived upon a showing that strict application would result in an unreasonable financial burden on the property.
(2) Alternative Viable Use. An applicant may request that the requirements of this Chapter
18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like use is not viable; the proposed alternative use will support the purposes of the combining district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections.
(b) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this section and shall set forth in detail the factual and/or legal basis for the claim, including all supporting te chnical documentation. Any request under this section shall be submitted to the Planning and Development Services Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request u nder this section shall be acted upon by the City Council.
SECTION 5. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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SECTION 6. The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the foregoing amendments to reduce retail vacancies will have a significant effect on the environment.
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SECTION 7. This Ordinance shall be effective from the thirty-first day after the date of its adoption until December 31, 2026 or upon adoption of replacement legislation by the City Council, whichever occurs first.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
Item 25
Attachment A -
Temporary Ordinance of
the Council of the City of
Palo Alto Amending
Chapters 18.04, 18.16,
18.30(A), and 18.30(C) of
the Palo Alto Municipal
Code to Immediately
Implement High Priority
Retail Revitalization
Measures
Item 25: Staff Report
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City Council
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: December 16, 2024
Report #:2412-3855
TITLE
Policy and Services Committee Recommendation to Adopt a Policy to Reimburse Council Members Up to $2,000/year from the City Council Contingent Account for Technology Resources and Other Actual and Necessary Expenses Incurred in the Performance of Official Duties
This Agenda Item was originally published on the November 4, 2024 City Council meeting. The Agenda Item was removed off the agenda and was not heard on November 4, 2024. The original report has been republished before you now on the December 16, 2024 City Council meeting.
RECOMMENDATION
The Policy and Services Committee recommends that the City Council adopt the attached policy authorizing Council Members to receive reimbursement, up to $2,000 per calendar year (taken from the City Council Contingent Account funding), for technology resources or other actual and necessary expenses incurred in the performance of official City duties. The policy includes procedures for documentation and audits. If adopted, the policy will be incorporated to the Council’s Procedures and Protocols Handbook.
BACKGROUND
On April 24, 20231, the Council updated the Procedures and Protocol Handbook and gave a series of referrals to the Policy and Services Committee to consider. After deliberation on those referral items, the Policy and Services Committee made recommendations to the Council on most of the referrals and the Council acted upon them on February 26, 2024. The Policy and Services Committee has continued to work on this referral:
Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to discuss the establishment of appropriate parameters for Council discretionary 1 April 24, 2023 City Council Meeting Item 6, Staff Report #2304-1287:
https://portal.laserfiche.com/Portal/DocView.aspx?id=65929&repo=r-704298fc& Item 26
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expenditures and whether to allocate $2,000 annually from the Council contingency fund for each Council member to decide its purpose.
The Policy and Services Committee revisited this Council referral on March 12, 2024 to consider allocating $2,000 annually from the Council contingency fund for each Council member. This allocation would cover expenditures aligned with Council-defined purposes. The discussion was a continuation from February 13, 2024, where the Committee decided to further examine program details and compare similar initiatives in neighboring jurisdictions.
During the March 12 meeting, staff presented similar programs in neighboring jurisdictions and reviewed the requirements under Cal. Govt. Code section 53232.2, which allows reimbursement for “actual and necessary expenses incurred in the performance of official duties” and requires certain procedures for implementing such a policy. The Policy and Services Committee focused on reimbursement for cellular phone use and technology when used for official business.
On September 10, 2024, the Policy and Services Committee discussed a draft policy, Attachment A, for reimbursing expenses for cell phone use and technology when used for official business. By a vote of 2 to 1 (Kou no), the Committee voted to recommend the Council incorporate the draft reimbursement policy into the City Council Procedures and Protocols Handbook.
ANALYSIS
Given the recent increase in Council salaries, a direct stipend, which would be taxable and is considered salary, is not feasible as it would surpass City of Palo Alto’s Charter salary limits.
Instead, the proposed policy focuses on reimbursements for actual expenses, which are not considered taxable income and are regulated under California Government Code Sections 53232.2 and 53232.3. Section 53232.2 requires a written policy specifying the types of expenditures that qualify for reimbursement. Section 53232.3 requires members to submit expense reports and receipts documenting reimbursable expenditures, and provides that records are subject to release under the Public Records Act.
In conformance with Section 53232.2, Attachment A establishes a written policy for allowable reimbursement with monitoring and reporting requirements. Eligible expenditures include computers, tablets, smart phones, software, subscriptions services (for example internet or Zoom), and cellular phone service. The draft policy includes a provision for (a) full reimbursement of technology purchases and services up to the annual maximum allowed by the policy and used solely for official business, and (b) 25% reimbursement for devices and services that are used for both personal and official purposes. The 25% partial rate of reimbursement is intended to establish a reasonable estimation of official use where devices or services are used for both personal and official purposes, where precise accounting of official and personal use is impractical or impossible. The Council could designate a different Item 26
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percentage if it reasonably believes that Council members use their dual-use devices more or less frequently than one quarter of the time. Any equipment purchased would be owned by the individual Council member and is their responsibility for service and maintenance.
The policy allows for reimbursement of other (non-technology) types of actual and necessary expenditures incurred in the performance official City duties, with prior Council approval.2 Any questions regarding the appropriateness of an expense should be resolved by the Council before the expense is incurred. Reimbursements needing Council approval can be processed in batches as a single item, which could be placed on Consent if the Council so directed.
Consistent with the initial referral from Council, the policy provides that reimbursement would be capped $2,000 each calendar year, per Councilmember. In the future, if Council wishes to allocate more or less money for reimbursements, Council can direct staff to revise the policy to reflect the new amount.
All claims for reimbursement will need to be supported with documentation and submitted using the City's official expense report forms within 60 days of incurring the expense. The documentation required may depend on the expenditure. For certain expenses, a summary- level receipt, in lieu of a detailed or itemized receipt, may be acceptable.
Any claims that are non-compliant or lack proper documentation will be disapproved. Expense reports, receipts and other documentation are subject to release under the Public Records Act.
Additionally, all expense reports are subject to audit. Approved reimbursements will be processed within 30 days.
The proposed policy aims to balance the flexibility and convenience of a stipend—currently unfeasible due to the Council’s salary caps—with the Government Code's requirement that expenses be actual, necessary, and supported by documentation.
FISCAL/RESOURCE IMPACT
Council previously indicated an intention to fund Council Member reimbursements from the Council Contingency Fund. Sufficient funds exist in the FY2025 budget to fund reimbursements at the $2,000/member level. Depending on usage, a moderate amount of staff time would be needed to administer the policy.
ENVIRONMENTAL REVIEW
Not a Project
2 Note that travel, lodging and meals while on City business are already separately covered by the Travel Policy. In addition, one other type of expenditure that Policy and Services discussed—services of paid interns or staff— would not be appropriate for reimbursement under the limited reimbursement policy before Council today. This is because use of paid interns or staff is a more significant proposal that would require further policy discussion, additional fiscal resources, and a more robust structure and set of policies.
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ATTACHMENTS
Attachment A: Draft Council Reimbursement Policy
APPROVED BY:
Ed Shikada, City Manager
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CITY COUNCIL REIMBURSEMENT POLICY FOR EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES 1. PURPOSE This Policy establishes the guidelines and standards regarding reimbursement of actual and necessary expenses of the City Council incurred in the performance of official City duties. Council members may incur expenses in fulfilling the responsibilities as an elected official. All expenditures of public funds must be related to the performance of City business. Council members may be reimbursed for actual and necessary expenses incurred in the performance of authorized City business and official duties in conformance with this Policy. Reimbursement for travel expenses shall be governed by Section 7 -City Council and Boards and Commissions Policy for Travel and Miscellaneous Expenses Reimbursement. 2. AUTHORIZED EXPENSES Communications tools (e.g., cellular phones, data plans, computers, and Internet access) are necessary for Councilmembers to fulfill their official responsibilities of communication with constituents, City staff, and others. In lieu of the City providing communication tools to each Council member, Council members are expected to use personal devices in the course of their duties. 2.1 Technology Purchases Reimbursement Council members may be reimbursed for technology purchases that are essential for performing official duties. These purchases include, but are not limited to, computers, tablets, software, and subscriptions services (e.g., internet, Zoom, etc.). If the technology purchase will be used exclusively for official business, the Council member will be reimbursed for all the actual cost of the purchase up to $2,000 each calendar year from the City Council Contingency Funding. If the City fully reimburses a Council Member for a physical device, the device must be returned to the City at the end of the Council Member's service. However, the City may allow the Council Member to keep the device if it is determined that the device has no value or is no longer useful to the City. If the technology purchase will be used for personal use as well as official business, Council members will be reimbursed 25% of the actual cost of the purchase up to $2,000 each calendar year from the City Council Contingency Funding. Considering the difficulty in parsing out official use versus personal use in this circumstance, this shall Item 26
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be considered a reasonable amount to represent the reimbursement for actual costs associated with the technology purchase. 2.2 Cellular Phone Usage Reimbursement Council members will be reimbursed 25% of the actual total monthly cost of the use of their cellular phone up to $2,000 each calendar year from the City Council Contingency Funding. Considering the difficulty in parsing out official use versus personal use in this circumstance, this shall be considered a reasonable amount to represent the reimbursement for actual costs associated with the use of their cellular phone. 2.3 Expenditures Requiring Council Approval Except as set forth in this Section, all other expenditures require prior approval by the Council at a public meeting. Any questions regarding the propriety of a particular type of expense should be resolved by the Council before the expense is incurred. 3. MONITORING AND REPORTING All expenses and claims for reimbursement shall be submitted on City expense report forms within 60 days of the incurred expense. All expense reports shall be accompanied by documentation showing that the expenses comply with this Policy for expenditure of public resources. Inability to provide such documentation in a timely manner may result in the expense being borne by the Councilmember. Reimbursements that do not comply with this policy will not be approved. Expense reports are subject to audits. Approved reimbursements will be processed and issued within 30 days of approval.
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COUNCIL APPOINTED OFFICERS COMMITTEE
Staff Report
Report Type: ACTION ITEMS
From: Human Resources
Meeting Date: December 16, 2024
Report #:2412-3842
TITLE
Approval of CAO Committee Recommendation to direct the City Manager, or their designee, and Council Appointed Officers Committee Chair Lauing to negotiate renewal of the contract with Baker Tilly US, LLC for Internal Audit Services through June 30 2026 with an option to renew for two years; and align the review of the City Auditor performance with other CAO reviews.
RECOMMENDATION
The Council Appointed Officers Committee unanimously recommends that the City Council give direction to the City Manager or their designee and the Council Appointed Officers Committee Chair Lauing to renew and refine the terms of a contract amendment with Baker Tilly US, LLC through June 30, 2026 plus negotiate terms for an option to renew for two years, and to align the review of the City Auditor performance with other CAO reviews.
BACKGROUND AND DISCUSSION
The CAO Committee met on November 13, 20241 to review and discuss the options available for the internal audit services contract and make a recommendation to Council on next steps for the future direction for these services.
The City Auditor is a City Council appointed position. The City Charter defines the City Auditor’s important role and furthers the City Council’s commitment to internal auditing, transparency, and accountability in government.
Per City Council direction on February 10, 2020 to consider outsourcing the Auditor function, the Council Appointed Officers (CAO) Committee, completed a request for proposals (RFP) process for outsourced internal auditing services, led a procurement process aligned with Council direction, and engaged in a transparent review of scope of work services, RFP 1 City Council, November 13, 2024, Staff Report #2410-3733 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16375 Item 27
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evaluation, and a public interview process as part of the overall effort. Through the procurement process, the Council selected Baker Tilly to lead the City’s internal audit services.
On September 28, 20202, the Council approved a contract with Baker Tilly US, LLP for internal auditor services in an amount not to exceed $1.3 million for a term beginning October 1, 2020 through June 30, 2022. The contract provided the option to extend the term for a period or periods of up to three additional years, through June 30, 2025, by mutual agreement with compensation to be determined in such years by terms outlined in the contract. Council has extended the contract through approval of two amendments with the current contract ending June 30, 20253.
Baker Tilly, US, LLC provides auditing services for the City of Palo Alto and the City’s contract with Baker Tilly US, LLC specifies the designation of a City Auditor. On May 6, 2024, the City Council formally appointed Kate Murdock as City Auditor.
The CAO Committee met on November 13, 2024 and the following motion passed 3-0 recommending that the Council authorize the following:
Council Member Burt moved, seconded by Vice Mayor Lauing to recommend to City Council to recommend that staff and the Council Appointed Officers Committee Chair refine terms of a contract renewal with Baker Tilly through June 30, 2026 plus negotiate terms for an option to renew for two years, and to align the review of the City Auditor performance with other CAO reviews.
FISCAL/RESOURCE IMPACT
Funding for annual internal audit services is budgeted in the Office of the City Auditor in the operating budget. Funding for this contract extension will be included in the FY 2026 Proposed Budget and funding for future years of the contract is subject to the annual appropriation of funds.
STAKEHOLDER IMPACT
The CAO Committee engaged in a public discussion of this item on November 13, 2024. 2 City Council, September 28, 2020, Staff Report #11624 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11624.pdf?t=64761.15
3 City Council, June 17, 2023, Staff Report #2406-3129
https://portal.laserfiche.com/Portal/DocView.aspx?id=73984&repo=r-704298fc&searchid=0b800107-4b67-4777- 99d5-d258e3d6f8c7
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: December 16, 2024
Report #:2405-3043
TITLE
Semiannual Update on the Status of Capital Improvement Program Projects; CEQA Status – Not a Project
RECOMMENDATION
This report is provided for information only and requires no Council action.
EXECUTIVE SUMMARY
The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the 2014 Council Infrastructure Plan as well as utility rates and various other sources. The 2024-2028 five-year CIP totaled $1.2 billion for 209 projects as reviewed by the Council in its adoption of the FY 2024 Capital Budget. Since July 2016, the City of Palo Alto has completed 101 individual community-serving projects totaling over $406 million in improvements. A summary of all completed CIP projects is provided at the end of Attachment A.
The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of January to June 2024.
One Time CIP's
CIP Workgroup Recurring CIPs
Pre-Design Design Procurement Construction Completed
Airport 0 0 3 2 1 0
Buildings and Facilities 10 4 10 0 11 0
Electric 9 2 10 0 6 0
Fiber Optic 2 0 2 0 0 0
Gas 4 0 1 0 1 0
Parks and Open Space 9 5 5 0 5 1
Stormwater Management 2 0 3 0 3 0
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Streets and Sidewalks 8 0 3 0 0 0
Traffic and Transportation 5 1 5 1 2 1
Wastewater Collection 4 0 0 0 0 1
Wastewater Treatment 1 2 3 0 3 1
Water 7 1 1 0 2 1
Subtotals 61 15 46 3 34 5
Totals 164
BACKGROUND
This report provides Council with an update on the status of capital improvement program (CIP) projects, with detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community. The report does not include Internal Service Funds projects (Information Technology and Vehicle).
ANALYSIS
Project Update Organization
The City of Palo Alto has a robust capital improvement program, and many individual projects are in progress at any given time. The 2024-2028 five-year CIP totaled $1.2 billion for 209 projects as reviewed by the Council as part of the adoption of the FY 2024 Capital Budget. The attached CIP project tables are intended to provide Council with a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the status of the project, and upcoming activities including Council actions.
Also included in the report is a list of all completed projects since the introduction of the Infrastructure Management System.
Major/Significant Projects Summary
The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts and ties to several 2024 City Council Priorities and related objectives. The following table details the Total Project Budget and Total Actual Expenses through June 30, 2024, for the Infrastructure Plan projects. Please note that the project updates in the Council Infrastructure Plan table are current as of the publication of this report, while the attached comprehensive project updates include June 30, 2024 status information.
Council
Infrastructure
Plan Projects
CIP
Number Project Update
Total Project
Budget
Total Actual
Expenses*
New Public Safety
Building
PE-15001 Construction is finishing up with
completion expected in winter 2025.
Phased staff move-in is expected in
January 2025, following December 2024
issuance of a Temporary Certificate of
Occupancy.
$118,137,997 $113,275,793
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Bicycle and
Pedestrian
Transportation
Implementation
Plan
PL-04010 This project funds the Bicycle and Pedestrian
Transportation Plan Update, which has
kicked off recently and is slated to take
approximately 18 months to complete. This
project also funds the implementation of
various bicycle and pedestrian projects.
$15,293,904 $211,611
New Downtown
Parking Garage
PE-15007 Council directed staff to look at the feasibility of partnering with a private entity to develop
new parking using downtown in-lieu parking
fees in conjunction with housing or other
uses, including the use of City surface lots or
privately held parcels. Council gave direction
to staff in December 2023 to advance the
project in conjunction with advancement of
affordable housing in the Downtown area. A
design contract for the garage was approved
on Council’s December 2, 2024 consent
agenda.
$7,488,918 $1,440,311
New California
Avenue Area
Parking Garage
PE-18000 Completed (final punch list items in progress) $50,213,486 $49,442,821 Charleston
Arastradero
Corridor Project
PE-13011 Completed $20,645,491 $20,645,491
Fire Station 3
Replacement
PE-15003 Completed $10,598,580 $10,598,580
Highway 101
Pedestrian/Bicycle
Overpass Project
PE-11011 Completed $23,734,218 $23,734,218
Fire Station 4
Replacement
PE-18004 Project is going through building permit
review. Staff is completed a pre-qualification
process, with construction bidding
anticipated in early 2025.
$15,329,846 $1,860,907
Byxbee Park
Completion
PE-18006 On hold pending completion of Baylands
Comprehensive Conservation Plan.
$3,699,189 $368,192
Downtown
Automated
Parking Guidance
Systems
PL-15002 Council approved a design build contract in
May 2023. Construction is underway and
expected to be completed in spring 2025.
$5,197,833 $1,658,417
*Total actual expenses through June 30, 2024
Current Council Infrastructure Plan project schedules can be found at https://www.infrastructure.cityofpaloalto.org/
Key considerations for the information presented in the project update tables include:
•Project status information is current as of June 30, 2024.
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•The individual project tables align with the Capital Improvement Fund categories in the Fiscal Year 2024-2028 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation.
•Enterprise Fund projects follow the order of their respective Fund in the capital budget. •Department Technology Upgrades and Improvements projects and Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table. •Additional project information is available in the Fiscal Year 2024-2028 capital budget. •Each project table is divided into a section for one-time projects and a section for recurring projects that have ongoing annual funding.
•Budgetary figures include staff oversight costs for projects to which staff costs have been allocated.
•The table of completed projects, located at the end of Attachment A, provides a summary of all CIP projects completed since the Biannual CIP updates to council began in 2016.
Completed Projects
There were five completed one-time projects in the second half of Fiscal Year 2024 (January through June 2024).
•Baylands Nature Preserve Entrance Gate (OS-24000)
•Charleston Arastradero Corridor Project (PE-13011)
•Wastewater Collection System Rehabilitation Augmentation Project 31 (WC-19001) •Primary Sedimentation Tank Rehabilitation (WQ-14003)
•Water Regulation Station Improvements (WS-07000)
One-time projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets.
Below are some photos of completed projects:
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Charleston Arastradero Corridor Project (PE-13011)
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Primary Sedimentation Tank Rehabilitation (WQ-14003)
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Wastewater Collection System Rehabilitation Augmentation Project 31 (WC-19001) Item 28
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One-Time Projects Under Construction
The 34 projects that are currently underway include the following:
Capital Improvement Fund (general fund):
• Baylands Boardwalk Piling Repair (PE-24000)
•Boulware Park Improvements (PE-17005)
•Cameron Park Improvements (PG-14002)
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•City Facilities Assessment and Record Plan Management System (PE-20002) •Civic Center Fire Life Safety Upgrades (PE-18016)
•Civic Center Waterproofing Study and Repairs (PE-15020) •Cubberley Field Restroom (CB-17002)
•Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equipment (PL-15002)
•Homekey Facilities (PE-24005)
•JMZ Renovation (AC-18001)
•Library Automated Material Handling (LB-21000)
•Lucie Stern Community Theatre Stage Rigging System Refurbishment (AC-24000) •New Public Safety Building (PE-15001)
•Performing Arts Venues Seat Replacement (AC-18000)
•Ramos Park Improvements (PG-14000)
•Rinconada Park Improvements (PE-08001)
•Roth Building Rehabilitation Phase 1 (PF-23001)
Airport Fund:
• Airport Layout Plan (AP-21000)
Electric Fund:
• Colorado Distribution Feeder Outlet Replacement (EL-22002) •Inter Substation Line Protection Relay (EL-17005)
•Foothills Rebuild Fire Mitigation (EL-21001)
•Hanover Substation Improvement (EL-24001)
•Smart Grid Technology Installation (EL-11014)
•Substation Physical Security (EL-16003)
Gas Fund:
•Gas Main Replacement Project 24 (GS-14003)
Stormwater Management Fund:
• East Meadow Drive System Upgrades (SD-22000)
• East Meadow Circle Connection to Adobe Creek Pump Station (SD-26000) • Trash Capture Device Installation (SD-22002)
Wastewater Treatment Fund:
• Joint Intercepting Sewer Rehabilitation (Phase 1) (WQ-24000) • Plant Master Plan (WQ-10001)
• Secondary Treatment Upgrades (WQ-19001)
Water Fund:
•Water Main Replacement Project 29(WS-15002)
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•Water Tank Seismic System Upgrades (WS-09000)
As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects.
Below are some photos of projects under construction:
New Public Safety Building (PE-15001)
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Capital Improvements of Note Implemented by Other Agencies El Camino Real:
El Camino Real (State Highway 82) is maintained by Caltrans. Pavement Condition Index scores for El Camino Real are significantly lower than the average for Palo Alto streets. Staff has been communicating with Caltrans about the plans to repave El Camino Real in Mountain View, Los Altos, and Palo Alto. Related work to address ADA updates/shoulder and sidewalk work at different points along El Camino Real has been completed with temporary parking and shoulder closures in effect. Roadway repaving construction began in early September 2024 and is anticipated to be completed in early 2025.
FISCAL/RESOURCE IMPACT
Funding for the projects discussed in this report was appropriated in the Fiscal Year 2024 Adopted Capital Budget and reviewed for the 2024-2028 Five-Year CIP.
STAKEHOLDER ENGAGEMENT
This report was coordinated with internal City staff in the Administrative Services, Community Services, Office of Transportation, Public Works, and Utilities Departments. Stakeholder engagement is conducted separately for each project.
ENVIRONMENTAL REVIEW
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This report is exempt from the California Environmental Quality Act (CEQA) as it is an informational report to Council. CEQA compliance is reviewed separately for each capital project.
ATTACHMENTS
Attachment A: Semiannual Update on the Status of Capital Improvement Program Projects
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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ATTACHMENT A
Semiannual Update on the Status of Capital Improvement Program Projects Capital Improvement Fund CIP Projects
Buildings and Facilities Projects
Parks and Open Space Projects
Streets and Sidewalks Projects
Traffic and Transportation Projects
Enterprise Fund CIP Projects
Airport Projects
Electric Projects
Fiber Optics Projects
Gas Projects
Stormwater Management Projects
Wastewater Collection Projects
Wastewater Treatment Projects
Water Projects
List of Completed Projects
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Buildings and Facilities Projects Status as of June 2024 One‐Time Projects
Animal Shelter
Renovation
(PE‐19002)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,921,108 $5,981,221 Public Works Design TBD
Project Status: This project installs interim facility improvements to the Animal Shelter that accompany the agreement for operation of the shelter by Pets In Need (PIN) approved by City Council in November 2018. The medical area upgrades and the modular office building are complete. The new kennel addition has been submitted for building permit. Project was placed on hold following receipt of PIN’s letter providing one‐year notification of termination of the agreement between PIN and the City. Public Works and Community Service Department staff are reviewing the project while negotiations continue on a new agreement. A new five‐year agreement was approved by Council in March 2024. Discussions with PIN and City staff regarding capital projects will start in summer 2024.City
Baylands Boardwalk Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Piling Repair $182,854 $276,461 Public Works Construction Winter 2025 (PE‐24000) Project Status: This project provides funding for the identification and implementation of a long‐term solution to damage caused by aquatic borers to The Lucy Evans Baylands Interpretive Center’s boardwalk. The project received permits from the San Francisco Bay Regional Water Quality Control Board, Bay Conservation and Development Commission, United States Fish and Wildlife Services, and United States Army Corps of Engineers.
The project was issued to bid in April 2024 and Council approved a construction contract in June 2024. Due to the biological restrictions, project construction will occur outside of the Ridgeway’s rail nesting season between September 1, 2024 and January 31, 2025.
City Facilities
Assessment and
Record Plan
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $288,961 $333,134 Public Works Construction Summer 2024 Project Status: The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment. A new facility condition assessment is warranted per the City’s APWA reaccreditation requirements. All City facilities will Buildings and Facilities Projects – Page 1 of 12
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Buildings and Facilities Projects Status as of June 2024 Management
System
(PE‐20002)
be assessed to bring current the “catch‐up” and “keep up” costs. In addition, an electrification assessment will be included to help the City reach its sustainability goals for 2030. Council awarded the contract in April 2022. All City facilities have been assessed for the Condition and Electrification assessments. The data is currently being evaluated in the new Capital Predictor software to generate reports detailing the current “catch‐up” and “keep up” costs, while staff continues to evaluate the draft reports. A detailed list of buildings for electrification is being analyzed to determine prioritization for replacements. The project is 98% complete and staff are evaluating the final reports. An Electronic Records Management System will be implemented through TE‐13004 utilizing Laserfiche as the sole repository for Public Works.
City Hall Space
Planning
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $52,615 $650,907 Public Works Design Winter 2024
(PE‐19000) Project Status: This project involves space planning to determine future workgroup space needs and programming for the City Hall office building focused primarily on the areas that will be vacated once the new Public Safety Building is complete and occupied. The project will include preliminary design of the space following the initial feasibility phase. Staff anticipates entering into a contract for initial space planning services in fall 2024.
Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Electrical Upgrade
& EV Charger
Installation
$656,289 $2,141,929 Public Works Design Spring 2025
Project Status: This project installed EV chargers in existing downtown garages and will replace the aging Civic Center electrical switchgear and motor control centers. EV charger construction at the Civic Center, Bryant Street garage and Webster Street garage was completed in December 2021. A contract was awarded in June 2021 for the design of the Civic Center switchgear replacement and is currently at the 90 percent design stage. Lead times on switch gear are now taking 12 months, so the project completion date has been extended. The structural analysis design of the switchgear area and its permit set were completed in winter 2024. (PE‐17010)
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Buildings and Facilities Projects Status as of June 2024 Civic Center Fire
Life Safety
Upgrades
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $904,269 $1,031,443 Public Works Construction Fall 2024 (PE‐18016) Project Status: This project will assess, update, and replace the Civic Center fire alarm system. The fire life safety system is approaching the end of its useful life. The fire alarm panel and associated equipment need an upgrade to meet current code requirements. The award of a design‐build contract was approved by Council in June 2021.
Construction in the main tower areas is nearly complete. The ground floor and the garage levels are yet to be completed. The project completion date has been extended to fall 2024 due to ongoing testing issues.
Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Waterproofing
Study and Repairs
(PE‐15020)
$798,460 $1,153,021 Public Works Construction Fall 2025 Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system. In 2016, RDH Building Science, Inc. determined that the expansion joint on the plaza could be repaired and that replacing the waterproof coatings on the inside of the plaza perimeter planter boxes was needed. Repair of the waterproofing joint in front of City Hall was completed in winter 2023. Staff will start procurement for a design contract in fall 2024 focused on the repair of the perimeter planter boxes.
Cubberley Gym Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion HVAC Replacement $0
(CB‐24000)
$809,297 Public Works Design Spring 2026
Project Status: The existing heating system in Cubberley Gyms A & B is original to the building, which was constructed in the mid‐1950s. The system is currently not functioning because multiple leaks have developed in the steel hot water piping, which is in the walls and under the floor. These leaks contributed (in addition to a domestic water main supply leak) to significant water damage in the walls, floors, and crawl spaces of the gyms.
Asbestos and mold were remediated from the under‐floor crawl space. All the old heating units and piping were removed from the ceilings in both gyms. The next step is to hire a consultant to create design drawings for a new heating system. Due to staff workload constraints, design will begin in early FY 2025.
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Buildings and Facilities Projects Status as of June 2024 Electrification of
City Facilities
(PE‐24001)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $204,162 $1,017,599 Public Works Pre‐Design Fall 2030
Project Status: This project will evaluate feasibility, prepare designs, and implement construction for the electrification of fossil fuel consuming building systems in coordination with the Building Systems Improvements project (PF‐01003). The City Facility Electrification assessment report will act as a workplan to implement the electrification of City facilities. An RFP for an on‐call task order consultant for all City facilities requiring electrification will be issued in fall 2024. Facilities will be electrified in order by priorities set by the Electrification Assessment to facilitate reaching the S/CAP goals.
Fire Station 4
Replacement
(PE‐18004)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,860,907 $15,329,842 Public Works Design Winter 2026
Project Status: This project will replace Fire Station #4 at the corner of Middlefield Road and East Meadow Drive.
The design consultant has completed design development and received Planning approval for the project in November 2023. A construction management contract was awarded in December 2023. Project has been submitted for building permit review, and Architect is preparing resubmittal. CityStaff is preparing to solicit for pre‐qualification bids later this summer with a construction bid anticipated in fall 2024. City will submit the temporary station project for building permit review in summer 2024.
Fire Training Facility Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Replacement $459 $55,293 Fire Department Pre‐Design Summer 2026 (FD‐24000) Project Status: This project will identify an appropriate site and construct a new fire training facility in Palo Alto.
This will be the first City‐owned and City‐maintained permanent fire training facility, and it will allow training to be conducted within City limits and therefore reduce the downtime associated with the need for staff to travel for training and when responding to calls.
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Item 28
Attachment A: Semiannual Update
on the Status of Capital
Improvement Program Projects
Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 Homekey Facilities Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion (PE‐24005) $2,218,979 $4,500,000 Public Works Construction Spring 2025 Project Status: This project involves relocating the City of Palo Alto (City) GreenWaste facility from its current site on one portion of 1237 San Antonio Road to the rear portion of the same site as a result of adding the Homekey Palo Alto interim housing shelter. Homekey Palo Alto will be operated by LifeMoves who will provide intensive, customized case management for clients including counseling, employment and housing search services with the goal of paving a dignified path to self‐sufficiency. Devcon Construction began construction in October 2023. Site excavation, grading and underground utility infrastructure work has been completed. Building utilities, curb pouring, concrete form work and rebar placement for the building foundation is currently in progress.
Construction is anticipated to be completed in early 2025.
JMZ Renovation Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion (AC‐18001) $4,172,284 $4,966,603 Community Services Construction Summer 2025 Project Status: This project provides for the temporary relocation of the Junior Museum and Zoo and the construction of a new facility and exhibits. The California Dinosaur Garden exhibit, which is partially funded by a reimbursable federal grant, was opened with a special ribbon cutting ceremony in October 2023. Funds associated with the grant are expended against the project until reimbursements are made. Reimbursement has been submitted and expected in the first quarter of FY 2025. A portion of the CIP was extended through FY 2025 to complete the list of remediations and equipment not purchased in FY 2024 due to staffing shortages. Completion is expected in July 2025.
Library Automated Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Material Handling $205,811 $1,085,100 Public Works Construction Winter 2025 (LB‐21000) Project Status: This project is to provide the design and construction of three new Automated Material Handling (AMH) Systems for the College Terrace, Children’s, and Downtown Libraries. Due to space constraints and limited functionality, only the Children’s Library installation will be proceeding. AMH systems efficiently sort returned Buildings and Facilities Projects – Page 5 of 12
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Attachment A: Semiannual Update
on the Status of Capital
Improvement Program Projects
Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 library materials based on the Radio Frequency Identification Devices (RFID) on the materials. Building permit has been issued. Project will be out to bid in summer 2024, and construction contract award is anticipated for fall 2024.
Lucie Stern Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Community Theatre $28,548 $2,756,854 Public Works Pre‐Design Fall 2026 Mechanical
Equipment
Replacement
(PE‐24002)
Project Status: This project will upgrade and replace the Heating Ventilation and Air Conditioning (HVAC) system at the Lucie Stern Community Theatre. As a first step, the project will include a detailed feasibility study to determine if natural gas‐powered equipment in the facility can be electrified per the recommended results of the City‐wide electrification assessment.
Lucie Stern Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Community Theatre $0 $221,169 Community Services Pre‐Design Fall 2026 Fire Curtain
(AC‐24001)
Project Status: This project will replace the fire curtain and its associated rigging at the Lucie Stern Community Theatre. The fire curtain work will be coordinated with the Theatrical and House Lighting System Replacement Project (PE‐24003).
Lucie Stern Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Community Theatre $0 $116,113 Community Services Construction Summer 2024 Stage Project Status: This project will refurbish the most heavily used components of the stage rigging system at the Lucie Stern Community Theatre. The construction contract was approved by City Council on June 3, 2024. Work is scheduled to start in July 2024.
Rigging System
Refurbishment
(AC‐24000)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $21,177 $372,252 Public Works Design Fall 2026
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Attachment A: Semiannual Update
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Improvement Program Projects
Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 Lucie Stern
Community Theatre back‐stage work areas, the performance stage, and audience areas. The design of the new system is complete Theatrical and bid ready. The timing of this project will coincide with the Community Theatre Mechanical Equipment Project Status: This project will upgrade and replace lighting systems at the Lucie Stern Community Theatre for and House Lighting Replacement (PE‐24002).
System
Replacement
(PE‐24003)
Mitchell Park
Library Repair
(PE‐24006)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $15,083 $250,000 Public Works Design Spring 2025
Project Status: This project will repair the damage caused by a vehicular accident in January 2023. A vehicle ran into the north wall of the Mitchell Park Library near the center of the building. The car impacted an area of the stone cladding on cold‐formed steel studs, causing the cladding to fall from the wall and the wall to bulge into the building’s interior. Architectural and structural survey and reports were completed. The stone cladding wall requires replacement, but the structural steel frame was not damaged. The design contract is being finalized with Purchasing. Construction to repair the wall is estimated to begin in late fall 2024.
Municipal Service
Center Lighting,
Mechanical, and
Electrical
Improvements
(PF‐16006)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,195,776 $8,786,825 Public Works Design Spring 2026
Project Status: This project replaces original mechanical, electrical, and lighting systems installed in 1966. It also includes design and construction for office renovations for the Zero Waste group. The design is 100% complete and the planning permit was approved in spring 2024. The project should be out to bid in the first half of FY 2025.
New Downtown
Parking Garage
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,440,311 $7,488,904 Public Works Design TBD
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Buildings and Facilities Projects Status as of June 2024 (PE‐15007) Project Status: This project was intended to provide a new parking structure in the University Avenue commercial area at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street. As part of the FY 2021 budget strategy, all Capital Improvement Fund funding has been removed and only the downtown parking in‐lieu fee funding remains for this project. In December 2021, Council directed staff to look at the feasibility of partnering with a private entity to develop new parking using downtown in‐lieu parking fees in conjunction with housing or other uses, including the use of City surface lots or privately held parcels. A Request for Information was issued in December 2022 and staff reviewed proposals and held interviews in May 2023. Council gave direction to staff in December 2023 to advance the project in conjunction with advancement of affordable housing in the Downtown area.
New Public Safety
Building
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $113,275,793 $ 118,137,971 Public Works Construction Summer 2024 (PE‐15001) Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential services standards and the current and future needs of the public safety departments. The PSB and new garage in the California Avenue business district are now an integrated project and both are part of the 2014 Council Infrastructure Plan. Construction on the PSB started in March 2021 and will continue into summer 2024.
Permanent power was completed in September 2023. The communications monopole was installed in October 2023. The Tier 4 emergency generator has been started up. Sitework, landscape and the building exterior is nearly complete. Remaining construction activities and City fixtures, furniture and equipment are progressing on a schedule to allow public safety departments a phased move‐in to the new building starting in September 2024.
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $663,022 $1,247,566 Public Works Construction September 2024 Buildings and Facilities Projects – Page 8 of 12
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Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 Performing Arts
Venues Seat
Replacement
(AC‐18000)
Project Status: This project will replace all the seats in the Community and Children’s Theatres. Staff hired a consultant to design the seat replacements and ADA upgrades for the Children’s Theatre portion of the project.
The Children’s Theatre seats replacement was completed in November 2022. A contract for the design of the Community Theatre was issued in June 2023. Council approved a construction contract on April 22, 2024, with project completion expected in fall 2024.
Rinconada Pool
Family Changing
Room
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $34,922 $1,544,303 Public Works Design Spring 2025
Project Status: The project will construct a gender‐neutral restroom and family changing facility that is compliant with the Americans With Disabilities Act (ADA) at the Rinconada Pool. The facility will include two separate rooms, each consisting of a toilet, sink, shower, and child/adult changing station. The facility will provide community members who have special needs, and individuals who require privacy, an accessible space for changing and personal hygiene. A design contract is currently being prepared. (PE‐24004)
Roth Building
Rehabilitation
Phase 1
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $6,927,119 $11,848,825 Public Works Construction Fall 2024 Project Status: This project provides funding for Phase 1 of the rehabilitation and build‐out of the Roth Building facility. Phase I will make the building suitable for occupancy, also known as a “warm shell.” Phase II of the rehabilitation includes the interior build‐out of the museum and exhibits, readying the facility to welcome visitors, and will be funded by the Palo Alto History Museum (PAHM). A Tenant Work Letter was approved by Council in April 2023 and construction is underway including underground utilities, roof, demolition, and abatement. The project is currently 50% complete.
(PF‐23001)
Recurring Projects
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Attachment A: Semiannual Update
on the Status of Capital
Improvement Program Projects
Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 Americans With
Disabilities Act
Compliance
Prior Year Actuals
$0
Current Year Budget
$884,677
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project provides accessibility upgrades to City facilities and equipment. It includes continued funding for improvements such as path of travel, restrooms, drinking fountains, and counters. An updated ADA Transition Plan was adopted by Council in June 2021. Staff is waiting to solicit for new software that will allow staff to identify and log new barriers, track grievances from the public, and update the ADA Transition Plan Report. (PF‐93009)
Building Systems Prior Year Actuals Current Year Budget $932,317
Implementing Department Project Phase Project Completion Public Works N/A RecurringImprovements $77,759
(PF‐01003) Project Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities. Construction for the Lucie Stern Community Theatre Automated Logic Controls Upgrade project started in June 2024 and is scheduled to be completed in summer 2024.
City Facility
Parking Lot
Maintenance
(PE‐09003)
Prior Year Actuals
$0
Current Year Budget
$385,941
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project repairs, resurfaces, or reconstructs parking lots and walkways at various City facilities, including restriping and signage. The FY 2024 Overlay Project was awarded by Council in March 2024, and includes the resurfacing of Hopkins Newell Tennis Court Parking Lot, Cubberley Community Center West and South‐East lots and Foothills Nature Preserve Water Tower Lots 1 & 2. All parking lot paving work was completed in the second half of FY 2024 with the exception of Cubberley Community Center which is expected to be completed in summer 2024.
Cubberley Repairs Prior Years Actuals
(CB‐17001) $309,506
Current Year Budget
$201,107
Implementing Department Project Phase Project Completion Public Works N/A Recurring
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Attachment A: Semiannual Update
on the Status of Capital
Improvement Program Projects
Item 28: Staff Report
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Buildings and Facilities Projects Status as of June 2024 Project Status: This project is for general maintenance needs of the Cubberley campus. Gym B is scheduled for floor sanding, game line repainting, and refinishing in July 2024. One third of the hardwood flooring and subflooring has been removed in Gym A due to water damage. A solicitation to replace the flooring is targeted for fall 2024.
Cubberley Roof
Replacements
(CB‐16002)
Prior Year Actuals
$27,039
Current Year Budget
$2,835,922
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project replaces existing roofs at Cubberley Community Center. Bid documents are with Purchasing for the Pavilion flat roof and staff are targeting early fall 2024 for construction.