Agenda packet — Palo Alto City Council, December 16, 2024 (part 1 of 5)

CITY COUNCIL
Regular Meeting
Monday, December 16, 2024
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

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

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

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

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

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

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)

1. Proclamation Expressing Appreciation to Dean Batchelor Upon His Retirement

2. Proclamation Recognizing Gunn High School Pickleball Club CLOSED SESSION (5:45 ‐ 6:45 PM)

3. CONFERENCE WITH CITY ATTORNEY—POTENTIAL LITIGATION
Subject: Potential Litigation Regarding Adequacy of City of Palo Alto Housing Element, As Set Forth in Letter Dated August 2, 2024 from David Lanferman, Esq.

Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:45 ‐ 7:15 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # of speakers.

Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:15 ‐ 7:20 PM) Members of the public may not speak to the item(s).

STUDY SESSION (7:20 ‐ 8:50 PM)

4. Discussion of 2024 City Council Ad Hoc Committees Activities CONSENT CALENDAR (8:50 ‐ 8:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

5. Approval of Minutes from December 2, 2024 City Council Meeting

6. Adoption of a Resolution Authorizing the City Manager to Transact for Electric Supplies to Meet the City’s Electrical Needs under Electric Master Agreements; CEQA Status: Not a project

7. Adoption of Resolutions Authorizing an Installment Sale Agreement with the California State Water Resources Control Board for Financing of the Local Advanced Water Purification System Project (WQ‐19003); CEQA Status ‐ Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037)

8. Community Development Block Grant 2025‐2030 Consolidated Plan and Authorize Execution of Revenue Agreement with the County of Santa Clara for Annual Action Plan FY 2025‐2026

9. Approve a Grant Agreement with the Federal Highway Administration for the South Palo Alto Bikeways Demonstration Project for the receipt of $888,000 in Federal Funds and Requiring $222,000 in City Matching Funds over Four Years; CEQA status – not a project.

10. Approval of Seven Professional Services Contracts C25192617, C24193306 ‐ C24193311, with Safebuilt, LLC, Integrated Design 360, CSG Consultants, Inc., 4LEAF, Inc., True North Compliance Services, Inc., TRB and Associates, Inc., and West Coast Code Consultants, Inc. in the Aggregate Total Not‐to‐Exceed Amount of $4,000,000 for On‐ Call Development Services, Inspection, Plan Review, and Green Building Program Services for a Period of Four Years. CEQA Status: Not a Project.

11. Approval of Increase of Construction Contingency for Contract No. C24190072 with O’Grady Paving, Inc. in the Amount of $345,000 to Perform Additional Street Improvement Work on California Avenue and El Camino Real for Capital Improvement Program Projects PL‐23000 and PL‐12000; and Adoption of a Resolution Continuing the Closure of a Portion of California Avenue through 2025; CEQA Status – Categorically Exempt under CEQA Guidelines Sections 15301 and 15304

12. Approval of Professional Services Contract Number C25193087 with Rincon Consultants in an Amount Not to Exceed $202,322 for California Environmental Quality Act (CEQA) Review of a Revised Master Plan for the Cubberley Site for a Period of One Year, and Approval of Budget Amendments in the General Fund and Cubberley Infrastructure Fund; CEQA Status – this action will initiate CEQA review of the master plan.

13. Approval of Contract Amendment No 1 to Contract Number C22177024A with CLEAResult Consulting Inc., Extending the Term for Two Additional Years Through November 14, 2026, a Change in the Compensation Structure, and no Change in Not‐to‐ Exceed Amount of $2,571,714 for Efficiency and Electrification Program Services for Small to Medium Business and Commercial Customers; CEQA Status: Not a Project.

14. 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.

15. 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.

16. 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

17. 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

18. 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

19. 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.

20. 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

21. 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 Supplemental Report added

22. 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.

23. 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).

24. 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)

25. 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) CITY MANAGER COMMENTS (8:55 ‐ 9:10 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 26: 9:25 ‐ 9:55 PM, Item 27: 9:55 ‐ 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

26. 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

27. 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.

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

28. Semiannual Update on the Status of Capital Improvement Program Projects; CEQA Status – Not a Project

29. 2023 Palo Alto Airport Noise Annual Report; CEQA Status – Not a Project

30. Surveillance Technology Report for Fiscal Year 2024; CEQA Status – Not a Project.

31. City of Palo Alto Monthly Investment Activity Report for November 2024 (Unaudited) OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee December 17, 2024  CANCELED
Finance Committee December 17, 2024  CANCELED
Retail Committee December 18, 2024
City/Schools Liaision Committee December 19, 2024  CANCELED Public Comment Letters
Schedule of Meetings
SUPPLEMENTAL/AMENDED AGENDA ITEMS

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

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

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

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

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

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

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

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

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

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

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

1 December 16, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

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