Cities Index.
Agenda packet

Palo Alto City Council
February 3, 2025

Document
Agenda packet
Meeting
February 3, 2025
Body
Palo Alto City Council
Original file
74.4 MB
Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

1 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

2 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

3 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

4 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

5 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, February 03, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated) 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

1. Interview Candidates for the Vacancies on the Planning and Transportation Commission Item Removed Off Agenda
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 6:00 PM)
Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number 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 (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).

CONSENT CALENDAR (6:05 ‐ 6:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from January 13, 2025 Meeting

3. Appointment of 2025 Emergency Standby Council

4. Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not‐to‐Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE‐18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not‐to‐Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

5. Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

6. Approval of Three Professional Services Contracts for On‐call Transportation Engineering and Planning Project Support Services, for a Four‐Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not‐to‐Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not‐to‐Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not‐to‐Exceed $800,000; CEQA status ‐ categorically exempt; specific projects will undergo environmental review as applicable.

CITY MANAGER COMMENTS (6:10 ‐ 6:25 PM)
BREAK (15 MINUTES)
ACTION ITEMS (Item 7: 6:40 ‐ 7:40 PM, Item 8: 7:40 ‐ 8:40 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

7. Update and Potential Direction on Car‐Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

8. 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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status ‐ Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6‐1, Kou no; and Pulled from Consent Calendar on December 16, 2024)
CLOSED SESSION (8:40 ‐ 9:10 PM)

9. CONFERENCE WITH CITY ATTORNEY – POTENTIAL LITIGATION Subject: Calculation of Housing In‐Lieu Fees for Sheridan Plaza, as set forth in December 18, 2024 Letter from David Van Atta
Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant

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.

10. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

11. City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

12. Interim Appointments for Utilities Director and Chief Transportation Official OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee February 4, 2025 CANCELED
Public Comment Letters
Schedule of Meetings
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.

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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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.

6 February 03, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

City Council
Staff Report
From: City Clerk
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: February 3, 2025
Report #:2411-3833
TITLE
Interview Candidates for the Vacancies on the Planning and Transportation Commission

DISCUSSION
The City Council provided direction at the January 21, 2025 City Council meeting on candidates to interview for three positions on the Planning and Transportation Commission (PTC). The schedule of interviews for February 3, 2025 will be available in a late packet distribution on January 30, 2025.

BACKGROUND
Then-PTC Commissioners George Lu and Keith Reckdahl were sworn in as City Councilmembers on January 6, 2025, thereby vacating their PTC seats. The terms of their PTC seats expire on March 31, 2025 and March 31, 2026, respectively. Additionally, another PTC position will expire on March 31, 2025. To consolidate recruitment efforts and encourage a broad applicant pool, staff recruited for all three (3) vacancies simultaneously:
One (1) partial term position expiring March 31, 2026
Two (2) full term positions expiring March 31, 2029
Recruitment was open December 2, 2024, through January 15, 2025, and staff received 19 applications. Applicants could apply for the partial term, full term, or both positions. City Council voted on which candidates to interview at the 1/21/25 City Council meeting and selected to interview all applicants who received at least one vote1. The results are:

1. William Glazier: Lauing, Stone, Reckdahl, Veenker (Partial or Full)

2. Daniel Hekier: Lu, Lythcott-Haims (Partial or Full)
1 City Council, January 21, 2025; Agenda Item #1; Staff Report# 2411-3832 https://portal.laserfiche.com/Portal/DocView.aspx?id=126922&repo=r-704298fc Item 1
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3. Terrance Holzemer: Lauing, Reckdahl, Stone (Partial Only)

4. Todd James: Burt, Lauing, Reckdahl (Partial or Full)

5. Kevin Ji: Burt, Lauing, Lu, Lythcott-Haims, Stone, Reckdahl, Veenker (Partial or Full)

6. Arthur Keller: Stone (Full or Partial)

7. Thomas Kellerman: Burt, Lauing, Veenker (Partial or Full)

8. Declan King: Reckdahl (Full Only)

9. Henrik Morkner: Veenker (Partial Only)

10. Salim Parak: Burt (Full or Partial)

11. Forest Peterson: Lu, Lythcott-Haims, Stone, Veenker (Partial or Full)

12. Michael Regula: Lu (Partial or Full)

13. Rika YeaKyung Yamamoto: Burt, Lu (Partial or Full)
City Council is scheduled to interview candidates at the 2/3/25 meeting and appoint new commissioners at the 2/10/25 meeting.

APPROVED BY:

Mahealani Ah Yun, City Clerk
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: February 3, 2025
Report #:2501-4001
TITLE
Approval of Minutes from January 13, 2025 Meeting

RECOMMENDATION
That the minutes be reviewed and approved.

ATTACHMENTS
Attachment A: January 13, 2025 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun
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Attachment A - January
13, 2025 Draft Action
Minutes

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13, 2025 Draft Action
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13, 2025 Draft Action
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13, 2025 Draft Action
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Attachment A - January
13, 2025 Draft Action
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: February 3, 2025
Report #:2501-3962
TITLE
Appointment of 2025 Emergency Standby Council

RECOMMENDATION
Staff recommends the City Council approve the selection of the following former Council Members to serve as members of the 2024 Emergency Standby Council:
Alison Cormack
Peter Drekmeier
Eric Filseth
Karen Holman
Liz Kniss
Lydia Kou
Greg Schmid

BACKGROUND
The Charter of the City of Palo Alto provides that, "the Council may, by Ordinance or Resolution, provide for the preservation and continuation of government in the event of disaster which renders unavailable a majority of the Council."
On August 7, 2006, the City Council adopted amendments to Section 2.12.090 of the Palo Alto Municipal Code regarding the selection procedure for the City's Emergency Standby Council.

The adopted policy states that the Council shall consider the following criteria for appointments to the Emergency Standby Council: residency in the City of Palo Alto, availability, interest in serving and a lack of conflicts of interest.

Seven members serve on the Emergency Standby Council. Members of the Standby Council have the authority delegated to them under Chapter 2.12 of the Palo Alto Municipal Code. The members of the Emergency Standby Council continue to serve until the Council appoints or reappoints the members at the beginning of each year.

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FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This is not a project.

ATTACHMENTS
None.

APPROVED BY:

Mahealani Ah Yun, City Clerk
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: February 3, 2025
Report #:2411-3783
TITLE
Approval of Construction Contract No. C25191929 with Alex Kushner General Inc. in the Amount Not-to-Exceed $390,000 for the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE-18004) and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $39,000; CEQA Status – Exempt Under Section 15303

RECOMMENDATION
Staff recommends that the Council:

1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C25191929 with Alex Kushner General Inc., in the amount of $390,000 for construction of the Temporary Fire Station 4 as part of the Fire Station 4 Replacement Capital Improvement Program project (PE-18004); and

2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Alex Kushner General Inc., for related additional but unforeseen work which may develop during the project, the total value of which shall not exceed $39,000.

BACKGROUND
In June 2014, City Council approved the 2014 Council Infrastructure Plan, which included the replacement of Fire Station 4, located at 3600 Middlefield Road, with a new station that will serve the immediate and future needs of the Fire Department.

In May 2022, the City contracted with Brown Reynolds Watford Architects to provide Architectural Design Services for the Fire Station 4 Replacement project1. During the construction of the new Fire Station 4, the station will be temporarily relocated for 24 months to the Cubberley Community Center, at 4000 Middlefield Road, to ensure continued emergency response to the neighborhoods served by Fire Station 4. 1 City Council, May 23, 2022; Agenda Item #2; SR #11691, https://portal.laserfiche.com/Portal/DocView.aspx?id=59470&repo=r-704298fc Item 4
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In March 2024, Council authorized the City Manager to execute a Purchase Order with Mobile Modular Management Corporation in an amount not to exceed $244,850 to provide and install a Modular Building at the Cubberley Community Center, under a two-year lease agreement to serve as a temporary Fire Station 4 facility3.

ANALYSIS
Staff recommends approval of Contract No. C251919294 for site preparation work to install the leased modular building; installation of a carport and equipment structure; and required utility connections.

Solicitation Process
An Invitation for Bids for the Construction of the Temporary Fire Station 4 Project was posted on OpenGov, the City’s eProcurement platform. The bidding period was 23 calendar days. Bids were received from three contractors on November 21, 2024.

Table 1: Summary of invitation for Bids
Project Bid Name/Number
Construction of Temporary Fire Station 4
Project/IFB# 191929
Proposed Length of Project 91 Calendar Days
Total Days to Respond to Bid 23
Mandatory Pre-Bid Meeting November 6, 2024
Number of Companies at Pre-Bid Meeting 12
Number of Bids Received 3
Base Bid Price Range $390,000 - $774,000
Public Link to Solicitation
https://procurement.opengov.com/portal/palo-
alto-ca/projects/126269

Staff reviewed the three bids and found all three of them responsive. The bids ranged from a low of $390,000 to a high of $774,000 and from 35% below to 29% above the engineer’s estimate of $599,089. The bid summary is included as Attachment A.

Staff reviewed all bids submitted and recommends the lump sum base bid of $390,000 submitted by Alex Kushner General Inc. be accepted, and that Alex Kushner General Inc. be declared the lowest responsible bidder. A change order amount of $39,000, equal to 10% of the 3 City Council, March 4, 2024; Consent Calendar #2; SR#2311-2277 https://portal.laserfiche.com/Portal/DocView.aspx?id=70838&repo=r-704298fc 4 Alex Kushner Construction Contract for Construction of Temporary Fire Station No. 4 Project C25191929; alex- kushner_c25191929_cc_staff-report_1.pdf
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total construction contract amount, is requested for related additional, unforeseen work which may develop during the project, implemented via City-approved Change Order.

Timeline
Construction on the temporary station is expected to begin immediately after contract approval with completion in May 2025, to allow for sufficient time to move-in fire personnel, and test the Fire Department Operations before construction of the new Fire Station 4, scheduled to begin following completion of the temporary station.

FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2025 Capital Improvement Program Fire Station 4 Replacement project (PE-18004).

STAKEHOLDER ENGAGEMENT
Public Works has coordinated the temporary Fire Station 4 with key staff from departments whose operations will be dependent on and affected by the temporary facility. Additionally, the City hosted a community meeting on April 11, 2024 at the Cubberley Community Center addressing the temporary relocation of Fire Station 4. Staff from the City’s Fire, Public Works, and Community Services Departments were present to discuss the project, construction timeline, fire operations, and public concerns.

ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15303 of the CEQA Guidelines as a new, small facility.

ATTACHMENTS
Attachment A: Bid Summary Results
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: February 3, 2025
Staff Report #:2411-3777
TITLE
Authorize the City Manager or their Designee to Execute an Assistance Agreement with the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) in the amount of $16,519,879 through January 31, 2030; CEQA Status – Not a project.

RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or their designee to:

1. Execute an Assistance Agreement with the United States Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) accepting $16,519,879 in federal grant funding for the replacement of PVC and steel natural gas pipelines, including the purchase of new greenhouse gas reducing equipment through January 31, 2030, subject to the PHMSA Grant Terms and Conditions; and

2. Complete all other documents required to comply with the Grant Terms and Conditions through Project completion, including assurances, audits, reports, and any needed changes to the Project scope, schedule or budget.

BACKGROUND
On November 15, 2021 President Biden signed the Bipartisan Infrastructure Law (Public Law 117-58-Nov. 15, 2021), which includes PHMSA’s first ever Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program. The legislation designated $200 million a year in grant funding with a total of $1 billion in grant funding over the subsequent five years. The grant funding is to be made available to municipality- or community- owned utilities (excluding for-profit entities) to repair, rehabilitate, or replace its natural gas distribution pipeline systems or portions thereof or to acquire equipment to reduce incidents and fatalities and avoid economic losses.

In August 2023, Staff submitted an application for three projects, the replacement of 2.5 miles of polyvinyl chloride (PVC) main in the Midtown and Palo Verde neighborhoods, the Item 5
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replacement of 2.3 miles of leak-prone steel main in the Community Center and Leland Manor neighborhoods, and the purchase of new leak detection equipment to assist Staff in detecting leaks and reducing greenhouse gas emissions. In May 2024, the City received notice from PHMSA that all three projects were selected for grant funding. The total grant funding for the three projects is $16,519,879, awarded on a cost-reimbursement basis. The construction sections of the projects will be completed under the Gas Main Replacement Project 25 (GS- 15000 project). The grant structure requires the City to pay for all project costs and submit for reimbursement for eligible grant expenses. The City will have 5 years to complete all three projects before the funding expires. Any costs deemed not eligible for reimbursement by PHMSA or that exceed the total grant amount will be the City’s financial responsibility.

Staff attends monthly Operations & Safety meetings with the American Public Gas Association (APGA) and municipalities throughout the United States. As of the January 2025 meeting, PHMSA is planning to continue issuing grant funding to awardees. Staff is in ongoing communication with PHMSA and watchful for any indication of program changes under the new Administration.

ANALYSIS
The City of Palo Alto natural gas distribution utility is regulated by PHMSA under the federal Department of Transportation in accordance with Title 49 Code of Federal Regulations (CFR) Part 192. The City’s Municipal Code Section 2.08.200 authorizes the City of Palo Alto’s Department of Utilities to provide operations, maintenance, and construction necessary to ensure the safe, efficient, and reliable delivery of natural gas service to all customers, among other responsibilities. This includes authority to perform all duties related to the repair, replacement, or rehabilitation of gas pipeline infrastructure within City limits. The City’s Municipal Code Section 2.30 regulates the City’s purchase of goods (equipment) and services; however, the assistance agreement may require stricter procurement standards for these projects.

The City’s current Gas Distribution Integrity Management Plan (DIMP), required by the Department of Transportation, was developed based on design, construction, operation, and maintenance records, including incident and leak history, corrosion control records, continuing surveillance records, patrolling records, maintenance history, and excavation damage experience, as well as the judgment and knowledge of City employees. The DIMP data shows the two major risks in the City’s gas system are related to the corrosion of coated-steel pipelines and damages to untraceable PVC pipe through excavations and earth movements.

This information was used to determine the City projects that were selected for its NGDISM funding application.

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over time and during earth movements. The City of Palo Alto applied for NGDISM federal grant funding to carry out three priority projects as described in the table below.

Table #1: Natural Gas Distribution Infrastructure Safety Modernization Grant (NGDISM) Award Details Project # Project Title Project Description Funds
Requested
Total # of
Miles
Priority
Ranking

1. Replacement of
steel pipe
This project is to replace 2.3 miles of leak-
prone 2” and 3” diameter coated steel main
and services, installed in 1939 and 1950, in
the Leland Manor and Community Center
neighborhoods of Palo Alto.
$7,844,084 2.3 Highest

2. Replacement of
PVC pipe
This project is to replace 2.5 miles of 2” and
4” diameter PVC gas mains, installed in 1971,
in the Midtown and Palo Verde
neighborhoods of Palo Alto.
$8,630,331 2.5 Second
Highest

3. Equipment
Purchase
This project is to purchase new leak survey
equipment to be used by municipal staff
when inspecting and surveying lines.
$45,463 N/A Lowest
The work for Project #1 and Project #2, in the above chart, will be completed under the GS- 15000, which is anticipated to begin construction in FY2026. Staff anticipates returning to Council for award of the construction contracts for these projects at the end of FY2025. The equipment purchase requested through NGDISM funding is the purchase of leak detection equipment to be used by City of Palo Alto Utilities (CPAU) employees when surveying pipelines for leaks throughout the City. Specifically, CPAU is seeking to purchase RMLD-CS and Detecto Pak leak detection equipment. The equipment currently being used is more than 30 years old and frequently in need of service for repairs. Equipment rental is not an option with any of the equipment providers in our area and the manufacturer of the requested equipment has confirmed they do not lease or rent the equipment. Equipment purchased with federal grant funding has specific disposition procedures required to comply with the Assistance Agreement when it is no longer needed for the Project.

Acceptance of these grant funds requires the City to comply with all PHMSA reporting requirements, including quarterly progress reports, quarterly federal financial reports, and final performance and financial reports. The City is also required to comply with applicable auditing, monitoring, and close-out requirements. Oversight of these requirements will be managed by both the project manager and utilities business operations in partnership with Administrative Services Department, especially to ensure compliance with federal audit accounting reporting standards.

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FISCAL/RESOURCE IMPACT
The total authorized grant funding is $16,519,879 for the completion of the two pipeline replacement projects and the purchase of new leak detection equipment over a five year period, through the end of January 2030. Grant funding for the NGDISM grant will require the City to submit for reimbursements as it incurs eligible project costs. Staff intends to submit for reimbursements at least quarterly each year and there are sufficient funds in the City’s gas capital improvement budget to manage the cash flow associated with the grant reimbursement funding structure. Any remaining grant funding after the completion of the two pipeline replacement projects and purchase of leak detection equipment will be used for the purchase of methane reducing equipment approved by the NGDISM grant.

STAKEHOLDER ENGAGEMENT
Both City Council and the Utilities Advisory Commission were notified of the NGDISM grant preliminary award. Utilities infrastructure work will continue to be coordinated with the public and other stakeholders as appropriate for the nature of work.

ENVIRONMENTAL REVIEW
Council acceptance of funding and approval of the assistance agreement does not constitute a “project” under the California Environmental Protection Act (CEQA). The grant award incorporates National Environmental Policy Act (NEPA) review conducted by PHMSA for the grant-funded construction projects (GMR 25), resulting in an approved Categorical Exclusion (CE).

ATTACHMENTS
Attachment A: Notice of Award
Attachment B: PHMSA FY2023 NGDISM Assistance Agreement and Grant Terms and Conditions Attachment C: NEPA CE for PHMSA FY2023 NGDISM Grant
APPROVED BY:

Kiely Nose, Assistant City Manager/Interim Utilities Director Item 5
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: February 3, 2025
Report #:2409-3440
TITLE
Approval of Three Professional Services Contracts for On-call Transportation Engineering and Planning Project Support Services, for a Four-Year Term: 1) Contract Number C25191149 with TJKM Transportation in the Amount Not-to-Exceed $300,000, 2) Contract Number C25192647 With Fehr and Peers in the Amount Not-to-Exceed $800,000, and 3) Contract Number C25192646 With Kittelson and Associates in the Amount Not-to-Exceed $800,000; CEQA status - categorically exempt; specific projects will undergo environmental review as applicable.

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute 1) a four-year contract (C25191149) with TJKM Transportation for $300,000 and 2) a four-year contract (C25192647) with Fehr and Peers for $800,000 and 3) a four-year contract (C25192646) with Kittelson and Associates for $800,000 (Attachments A, B and C) for On-Call Transportation Engineering and Planning Services.

EXECUTIVE SUMMARY
Staff recommends that the City Council approve and authorize the City Manager or designee to execute four-year contracts with TJKM Transportation, Fehr and Peers and Kittelson and Associates (Attachments A, B and C) for On-Call Transportation Engineering and Planning Support Services.

These contracts are on-call contracts that will support the City’s Office of Transportation staff and assist with the implementation of Engineering and Planning projects. Should the City not proceed with this recommendation, work production requiring the disciplines involved would be significantly impacted.

BACKGROUND
On February 8, 2021 1, the City Council approved four-year contracts for On-Call Transportation Engineering and Planning Support Services to support the Office of Transportation staff with 1 City Council, February 8, 2021, Agenda Item, #4, SR#11799 Item 6
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tasks for various small spot improvement projects throughout the city. At that time, staff awarded a four-year contract to both TJKM and Fehr & Peers in the amount of $800,000 each, for Transportation Engineering and Planning Support Services. Over the last four years, the total amount expended from these contracts was approximately $1.2M. Examples of some of the work that was included under these on-call contracts were:

1. Design of traffic signal modifications necessary to address accessibility, aging infrastructure/failures, changing standards, and safety improvement needs

2. Performed Traffic engineering studies and reports

3. Prepared Traffic signal coordination timing analysis using Syncro, SimTraffic, and/or VisSim programs

4. Prepared traffic signal plans, specifications, and estimates

5. Prepared engineering and traffic speed surveys

6. Prepared roadway/highway engineering plans, specifications and estimates

7. Performed transportation planning studies

8. Prepared grant funding applications and associated attachments and exhibits

9. Provided El Camino Real repaving design analysis/peer review

10. Designed spot improvement designs/planning along bike routes in the City On-call contracts enable in-house staff to manage significantly more work than would otherwise be possible. Both contracts ended in December 2024. Staff issued a new Request for Proposals (RFP) on May 28, 2024, for a new On-Call Transportation Engineering and Planning Services contract.

ANALYSIS
Following the completion of the RFP process, the City chose three firms to provide Transportation Engineering and Planning Support Services. The respondents were identified as experienced transportation engineering and planning firms that, taken together, possess a wide range of capabilities to support upcoming Transportation projects.

Each of the selected consultants provides certain strengths and expertise that will support the needs and demands for services involving the Office of Transportation. The consultants will assist staff in transportation engineering including, but not limited to, analyzing service requests, preparing signing and striping plans, developing traffic signal timing plans and modifications, assisting in the implementation of bicycle and pedestrian safety projects, and other transportation capital improvement projects, as needed. Depending upon project needs and staffing, the selected consultant team(s) will provide services including community meeting facilitators, graphic artists (with experience in preparing transportation-focused material for reports and community presentations), grant writers, landscape plans, roadway design engineers, surveyors, traffic data collection, transportation engineers, transportation planners, and utility coordinators.

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The Office of Transportation in coordination with the City’s procurement staff requested proposals from qualified engineering consultants for On-call Transportation Engineering and Planning Project Support Services.

Solicitation Process
The City published the RFP for the On-call Transportation Engineering and Planning Project Support Services on May 24, 2024, on OpenGov, the City’s eProcurement platform. The solicitation period was open for 30 days and closed on June 27, 2024. A total of four proposals were received, one of which was considered non-responsive.

Table #1: Summary of Request for Proposal
Proposal Description On-call Transportation Engineering and Planning Project Support Services; RFP 191149
Proposed Length of Project 4 years
Number of Proposal Packages Downloaded 17
Total Days to Respond to Proposal 30
Pre-Proposal Meeting No
Pre-Proposal Meeting Date NA
Number of Proposals Received 4
Proposal Price Range Hourly rates:

Ranges from $100/hr to $315/hr
Non-responsive bidders/ Responsive bidders 1/3
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/97743
Office of Transportation Staff evaluated the proposals based on qualifications and experience of the staff assigned to the project, proposal quality and completeness, response time, and ability to perform the work. Staff recommended Fehr and Peers, TJKM, and Kittelson and Associates, based on criteria identified in the RFP, including proposal content, knowledge of traffic engineering, and the ability to complete the projects in a timely fashion.

These consultants have working and technical experience giving them insights into best practices and emerging trends in transportation as they work for various municipal organizations and bring deep industry knowledge to City projects. In addition, they can provide unbiased insights with an outside perspective that is valuable to address community concerns.

The services also provide flexibility to scale the staffing on an as needed basis such as with Item 6
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grants opportunities to procure funding and implement projects. Finally, consultants provide the ability to lower the liability risks for the City.

Work is assigned on an as-needed basis by the city’s project managers, and assigned tasks will be spread out to each of the consultants to ensure that project deadlines can be met. Staff negotiates the cost and timeline of each project based on the scope of work and expected effort. The scope of work and expected hours are used to calculate the total costs based on the hourly rates included in the contract to prepare a task order. Based on the cost proposals for each task, staff will choose the most cost-effective consultant. All task orders will be reviewed and approved by a separate manager or Chief Transportation Official overseeing the assigned project manager.

TJKM has demonstrated strong expertise in traffic signal and Intelligent Transportation System design; while the other two consultants, Fehr and Peers and Kittelson and Associates, have stronger capital improvement engineering and transportation planning backgrounds. These consultants have demonstrated successful completion of various traffic studies, supported development and implementation of transportation projects, and have demonstrated strong skills in completing traffic engineering projects. Some upcoming tasks for which staff will require on-call support are:
Development of construction design plans for the Crescent Park Traffic Calming Project and for other upcoming neighborhood traffic calming projects Micromobility feasibility study - data collection, analysis, and support for programmatic recommendations
Vision Zero Program - data collection and analysis, Safety Action Plan updates, community engagement and education, roadway safety project design and implementation, funding identification, and support for policy changes Efficient Downtown Parking Management
Traffic Signal Improvements & Transit Signal Priority Projects Car-Free Streets Design and Implementation
Caltrans Encroachment Permit Support
South Palo Alto Bike/Ped Railroad Crossings Design and Implementation Transportation Demand Management Ordinance Update
Transportation Impact Fee Update
2025 Engineering and Traffic Surveys to certify posted speed limits and allow for radar enforcement by PAPD (On-going effort)
San Antonio/Middlefield Road – Signal and PG&E Remediation (Urgent, unplanned modification need)
School Safety intersection modifications (response to recent incidents and community discussions)
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Embarcadero/E. Bayshore signal modification (unanticipated failing infrastructure and ADA Accessibility needs)
Quarry Road ITS project
Safe Routes to School program evaluation and analysis
Walk and Roll Suggested School Route Map edits and development Traffic Impact Analysis (TIA) review of reports assessing project impacts on local and regional transportation systems

FISCAL/RESOURCE IMPACT
Funding for these contracts is available in the Fiscal Year 2025 Adopted Capital Improvement Program (CIP) from the following sources as they require on-call support:
PL-00026 (Safe Routes to School)
PL-04010 (Bicycle & Pedestrian Transportation Plan – Implementation Project) PL-12000 (Parking & Transportation Improvements)
PL-05030 (Traffic Signal and ITS upgrade)
Staff anticipates total spending of about $200,000 on an annual basis. Funding for future fiscal years is subject to City Council approval through the annual budget process.

STAKEHOLDER ENGAGEMENT
Stakeholder engagement for this contract consisted of the request for proposal and bidding process described above. Staff will conduct required community/stakeholder engagement for any projects that result from these on-call contracts.

ENVIRONMENTAL REVIEW
Approval of these contracts is exempt from environmental review under the California Environmental Quality Act (CEQA) because it can be seen with certainty that the contract approval alone will not have a significant effect on the environment; no specific projects are being approved or funded through this action. Environmental review may be required and will be completed as necessary for specific projects utilizing consultant services under these contracts.

ATTACHMENTS
Attachment A: TJKM Contract No. C25191149
Attachment B: Fehr and Peers Contract No. C25192647
Attachment C: Kittelson and Associates Contract No. C25192646 APPROVED BY:

Lily Lim-Tsao, Interim Chief Transportation Official
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: February 3, 2025
Report #:2501-3982
TITLE
Update and Potential Direction on Car-Free Street Improvements on California Avenue; CEQA status – CEQA review is currently underway on the projects as described in this report.

RECOMMENDATION
Staff recommends that the City Council discuss and potentially provide direction regarding ongoing improvements at Car-Free California Avenue.

EXECUTIVE SUMMARY
This item provides an update on work to enhance California Avenue as a car-free street -both significant work efforts through 2024, upcoming meetings, and next steps to advance this priority objective. This effort furthers the first guiding principle of the City’s comprehensive economic development strategy to “Reinforce each districts’ distinct scale and offerings by…embracing California Avenue as a community and neighborhood serving place.” 1 In alignment with the Council direction to make the car-free street permanent, this report is organized to discuss the following work underway to support this:
Work on near-term improvements,
California Environmental Quality Act (CEQA) requirements, Stakeholder engagement through 2024,
Updates on signage and wayfinding,
Outdoor activation guidelines, and
Alternative street designs.

This report provides a status update and includes preliminary outputs; continued and ongoing stakeholder engagement is necessary to finalize and implement elements such as signage and 1 https://www.cityofpaloalto.org/Business/Comprehensive-Economic-Development-Strategy Item 7
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wayfinding, outdoor activation guidelines, and advance the discussion on alternative street designs.

BACKGROUND
Previous City Council Direction
On June 20, 2020, the City Council temporarily closed portions of California Avenue to vehicular traffic to facilitate outdoor dining and retail. This was in response to county and state regulations related to COVID-19 and limits on indoor activities. Since then, Council has affirmed the status of California Avenue as a car-free street multiple times and gave direction to staff on November 6, 2023 to pursue making that status permanent3. That motion also included direction to create a two-way slow bike lane down the center of California Avenue, install wayfinding signage on California Avenue, and initiate a branding program based on the historic and contemporary strengths of the California Avenue Business district. The City Council approved a contract with Urban Field Studios (UFS) to assist with this work on December 18, 2023.

ANALYSIS
Near-Term Improvements
On December 16, 2024 the City Council approved a contract amendment with O’Grady Paving, Inc. to implement near-term improvements4. This work is anticipated to begin February 18, 2025 and take place over a period of five weeks. This work will include replacing water-filled barriers and vinyl banners with planters and bollards, resurfacing the street, providing stamped concrete crosswalks at various intersections, and other aesthetic enhancements. A second phase of work at the intersection of California Avenue and El Camino Real is dependent on Caltrans approval and will commence once the City’s encroachment permit is approved.

CEQA Requirements
The CEQA analysis required to precede final City Council approval of car-free California Avenue has been completed and will be reviewed by the Planning and Transportation Commission (PTC) on Wednesday, February 12, 2025. The full analysis will be released subsequently to this memorandum, but the findings indicate that the project will not result in any new or more severe impacts compared to impacts previously identified in the City’s comprehensive plan. As such, no further environmental review beyond the proposed addendum is required. 3 https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=13051&compileOutputType =1
4 https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=14538&compileOutputType =1
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The CEQA clearance will enable PTC recommendation and City Council approval of an amendment to the Circulation Element of the City’s Comprehensive Plan. Subject to PTC review, staff anticipates advancing the General Plan Amendment to City Council in March. This amendment will formalize designation of California Avenue between El Camino Real and Birch Street as a car-free street. This formal action is a critical step and will provide stakeholders with certainty that California Avenue will remain car-free, such that they can make investment decisions accordingly.

Stakeholder Engagement through 2024
From February to November 2024, City staff and UFS engaged merchants, residents, and community stakeholders to hear their preferences on near-term improvements and car-free street design.

Stakeholder engagement was extensive, involving merchants, community members, and other stakeholders. Monthly workshops were conducted with California Ave. merchants focusing on street design, signage, wayfinding, and broader design goals for a permanent car-free California Avenue. Attachment A: Car Free California Avenue Engagement summarizes stakeholder engagement by month and topic.

A brief listing of merchant and community stakeholder priorities for the transformation of California Avenue is below, followed by a table of consensus and differences of merchants and community stakeholders on street design considerations.

Merchant Priorities: Merchant priorities for what needs to change for the successful transformation of the street to enhance community experience and improve economic vitality are ranked from top goal to lower priorities below.
Top Goal: Retail vibrancy.
High Priorities: Nature (trees, plantings), outdoor dining and events. Moderate Priorities: Walkability, public art, nightlife and public social spaces. Low Priorities: Non-pedestrian mobility (e.g., vehicle or bike access).

For detailed findings and discussion of engagement by month, please refer to the project website: https://www.cityofpaloalto.org/Departments/Transportation/Transportation- Projects/Car-Free-Streets-Cal-Ave.-Ramona-Street. Before the November 2023 City Council vote to pursue permanently closing the street, 35 businesses signed a letter asking City Council to keep one lane open to traffic. This topic recurred frequently during the merchant engagement throughout 2024.

Community Priorities: Staff and UFS engaged community members through a community open house on May 16 during ‘3rd Thursday’, neighborhood association meetings, and an online survey (May–September) that received 930 responses. The key findings are detailed below.

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Top Priorities
oAccessibility and Inclusivity: Level paving, ADA compliance, and shaded seating for families, seniors, and disabled individuals.
oLandscape: Strong desire for trees, shade, and drought-resistant landscaping to improve comfort and aesthetics.
oBusiness and Economic Vitality: Support a diverse range of retail options, preserve storefront visibility, and minimize construction disruption. High Priorities
oBicycle and Pedestrian Integration: Need balanced co-existence, opinions divided on whether bike traffic should share pedestrian zones or be rerouted to parallel streets.
oEvents and Programming: Support for farmers markets, night markets, and cultural events, responsive to business needs and resident noise concerns. Medium Priorities
oSustainability and Climate Resilience: Interest in permeable paving, solar lighting, and shaded areas to adapt to climate change.
oPlace Identity and Design: Desire to preserve Cal Ave’s unique charm while avoiding overly commercialization.
oImplementation Efficiency: Preference for early, minimally disruptive implementation to sustain local businesses.
Low Priorities
oPublic Safety and Maintenance: Concerns about emergency access, event cleanup, and adequate lighting for safety.

Stakeholders: City staff met with representatives from Stanford Research Park and Urban Village Farmers Market Association. Stanford Research Park representatives expressed a strong desire for thriving local businesses on California Avenue. With close proximity to the Research Park’s 140 companies and 30,000 employees, there is a historic identification with California Avenue as a favored neighborhood main street destination. Employees are often at the research park Tuesdays, Wednesdays and Thursdays, and with fewer days on-site, they have less time and inclination to leave for lunch. The Farmers Market Association supports the closure of California Avenue and prioritized their feedback on what is needed to support market operations, vehicle access, and customer circulation.

Committees: City staff discussed California with the Retail Committee three times in 2024. Staff also attended a Pedestrian and Bicycle Advisory Committee (PABAC) meeting to discuss near- and long-term design, pedestrian and bicycle access, and improving mobility and the area’s role as a community hub.

Areas of Merchant and Community Consensus: Table 1, below, shows a strong alignment with minor differences between merchant and community interests regarding key elements of street design.

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Table 1. Comparison of Merchant and Community Feedback by Design Element Design Element Areas of Agreement Areas of Divergence
- Community prefers park-like elements and
shaded public spaces.

Softscape Surfaces - Prioritize trees and natural garden plantings over planters.
- Merchants are more concerned with
maintenance and practicality.
- Community favors wine-tasting and outdoor
movie screenings.

Events and
Programming
- Support night markets, musical
events, and seasonal/cultural
programming. - Some merchants prefer health and wellness events.
- Shade is the top priority - Community prefers playful/sculptural designs. Public Seating - Agreement on the need for child-
friendly seating.
- Merchants focus on functionality and theft
prevention.
- Community focused on artistic and interactive
lighting for alleys.

Lighting - Need for high-value functional
lighting with string lights a popular
choice. - Merchants focused on streetscape and tree
lighting and need for permanent improvements.
- Community prefers colorful and mosaic paving.
- Merchants do not prioritize decorative paving.

Hardscape
Surfaces
- Importance of safety, minimizing
tripping hazards and level,
continuous paving
- Some merchants want vehicles to return for
retail visibility and accessibility
- Community prefers unique, business-specific
designs.

Outdoor Dining - Value high-quality materials and
improvements to dining areas.
- Some merchants favor pre-approved, cost-
effective designs.
- Community supports additional bike racks and
separated bicycle and pedestrian areas.

Bike Infrastructure - Shared safety concerns about bike and pedestrian interactions,
especially with e-bikes. - Some merchants prefer bike-free pedestrian area to minimize conflicts.

Staff has incorporated feedback received from the community and stakeholders into place identity, signage and wayfinding; outdoor patio guidelines; and design alternatives for the future of Car-Free California Ave. Each of these three topics, including next steps, are discussed below.

Place Identity, Signage and Wayfinding
Staff and UFS have developed a preliminary California Avenue Signage Program included as Attachment B to this report. The program directly addresses merchant and community priorities to improve wayfinding to California Avenue businesses and to affirm California Avenue’s unique place identity. The preliminary program will express an accessible, welcoming, and attractive identity supportive of local businesses and community life.

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Alternatives: Merchant and community feedback on alternatives for signage are summarized in the following Table 2 below.

Table 2. Key Features of Design Alternatives and Feedback Design Theme Key Features Merchant Feedback Community Feedback Upscale Contemporary - Clean, vibrant, minimal
design to modernize and
upscale; poppy motifs; dark,
sophisticated color palette.
- Praised for simplicity;
criticized as too austere,
dark, and lacking warmth.
- Mixed opinions,
appreciate elegance and
readability, but cold,
austere, “Halloween-like;”
minimalism can have
longevity.

Artsy Saloon - Draws upon Mayfield past,
artsy, nightlife destination,
southwest color palette.
- Instagram-friendly; appeal
to younger demographics;
leans too much into
nightlife; Wild West dated;
red too Stanford.
- Divided, some like bold,
playfulness and historic
connection; others overly
western theme, kitschy
and dated.

Modern Optimism - Midcentury-inspired design;
cheerful colors; fun, pleasant
appeal people all ages.
- Broadly supported for
aligning with Cal Ave’s vibe;
like design; minor critiques
of tagline grammar, 50’s vs
21st C. modernity.
- Widely favored for its
vibrancy, warmth,
flexibility and community-
focused vibe; best aligned
with future aspirations.

Results from the community survey show a preference for Modern Optimism, valuing its vibrancy, warmth, and alignment with California Avenue's unique identity. Concerns about the tag line and details were noted and refined. Merchants favored Modern Optimism for its balance of aesthetics and functionality, emphasizing safety, flexibility, and its appeal to diverse audiences. Upscale Contemporary was also valued by merchants for its simplicity, but they felt it was less aligned with Cal Ave's local and community-centered ethos.

Staff analysis also concluded that Modern Optimism is a good choice, since it:
Represents California Ave’s unique identity as a local, historic, and community-centric street reflecting feedback that "We want something that feels unique to Cal Ave, not generic."
Stands the test of time and can adapt to future changes in the area reflecting feedback that "The design should be flexible enough to evolve with the area." Address accessibility concerns with practicality ensuring readability, visibility, and durability, reflecting feedback that "Readability is key—it needs to be easy to see and understand."
Embodies an ‘unpretentious, and vibrant’ ethos of the independent local businesses. Is artistic, yet functional, and celebrates California Avenue’s abundant public art. Is broadly appealing to stakeholders and will be attractive to the range of people who visit seeking shopping, dining, art, entertainment and community.

Signage Program: The signage program is comprised of “brand assets” - a logo with variants, tag line, shape motifs, typography, graphic patterns and color pallet., and a signage program - a system of modular signs, with flexibility to accommodate differing viewing distances and Item 7
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contexts, with guidance for signage locations. The brand assets are applied to five sign templates:
District blade sign (at El Camino Real)
Pedestrian directional signs
Informational (Directory) sign
Place identity markers (e.g., a banner with expression of place identity) Gateway sign concepts at the intersection of El Camino Real and California Avenue to create an identifiable district visible to vehicle traffic.

Guidelines for sign type and placement are to assist pedestrians to navigate to/from side streets and parking and access businesses and activities on the street. Sign types are designed at different sizes and heights depending on the location, visibility and wayfinding need. The sign types and placement will address key merchant priorities to:
Help drivers find parking
Excite visitors to explore the area
Enforce street rules
Help events run more smoothly
Make the streets more clean and secure
Help pedestrians navigate from parking & transit to local businesses Restrict vehicle access, while welcoming bikes and pedestrians This modular system and placement guidelines benefit local businesses in several ways. It ensures flexibility to adapt to various contexts, such as pedestrian versus vehicle viewing distances. Gateway signage will serve as a visual anchor, creating a sense of arrival while promoting California Avenue’s identity to passing drivers. Informational signs, strategically placed at key entry points and intersections, will guide visitors seamlessly from parking areas or transit stops to their destinations, reducing confusion and enhancing the visitor experience.

The application and installation of ‘directories’ for businesses along the street is something that has also been discussed – such an undertaking will require collaboration, engagement, ongoing maintenance and updates such that a commitment by local merchants for financial and management oversight is required to ensure it can be implemented and maintained successfully. Staff would not recommend such signage as a City responsibility, as it would typically be handled by a business association or other business collective.

Next Steps for Signage: Staff will bring the full signage plan before the Architectural Review Board for their feedback and identify next steps, including further City Council discussion. Based on commission and council input, staff can proceed to final designs, cost estimating, and an implementation schedule. Staff is currently working on the schedule for replacing the existing El Camino Real and California Avenue monument sign and develop a complementary sign to replace the Oregon Expressway sign. A request for financial support to procure and install the final plan will be needed before implementation can begin Item 7
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Outdoor Activation Guidelines
City Staff and UFS have made significant progress preparing preliminary Outdoor Activation Guidelines that takes advantage of the car-free context of California Avenue. The term “activation” is proposed, as potential uses including dining, retail, seating, recreational, and potentially other privately maintained activities. The California Avenue Outdoor Activation Program will enhance the commercial vibrancy of California Avenue, creating opportunities for businesses to use public sidewalks and roadway spaces for outdoor dining, retail, entertainment, and other business operations. This program will ensure these spaces are safe, equitable, and well-designed for uses including dining, retail, and live entertainment.

Commercial use of outdoor space supports local businesses, enhances customer experience, and directly contributes to a thriving community destination.

Vision for Car-Free Outdoor Activation Areas: The vision for car-free outdoor activation areas is to prioritize customer experience and invite spontaneous and meaningful social interaction. By carefully curating these spaces, the street can become a vibrant engaging atmosphere. Key elements are:
Opportunities for Social Interaction: Outdoor activations play a pivotal role in satisfying people’s innate need for spaces for casual and serendipitous social connection. Visual and Experiential: Inviting outdoor spaces, where residents and visitors can see each other and connect, can transform the street into a social gathering place. This can encourage walk-in and spontaneous dining, as outdoor spaces need to visually and auditorily add life, so the street feels lively and inclusive. Enclosures Shape Public Space: Enclosures define the boundaries of outdoor dining and activation areas by using railings, planters, stanchions, or screens to ensure safety, accessibility, and privacy. These boundaries need to be carefully designed to remain low and transparent, enhancing visibility to and from the street. Sidewalls or screens that can be raised or lowered confer weather protection while minimally detracting from the openness of the street.
Shelter for Comfort and Aesthetics: Instead of permanent constructed structures, umbrellas and awnings can serve as flexible, visually appealing solutions for weather protection. There are new fabricators and suppliers of overhead large format umbrellas and awnings that can provide shade, rain cover, and UV shielding, and space for electric heaters and lighting. This improves comfort for patrons while maintaining the openness of the street. Umbrellas and awnings are designed to align with the business aesthetic.

Collectively, umbrellas and awnings contributing to a more cohesive and colorful streetscape, rather than individual designed structures that visually obstruct views to adjacent storefronts or can be an obstacle to emergency access. Car-Free for a Thriving Environment: A car-free street is a unique opportunity to shape public outdoor space by prioritizing pedestrians, cyclists, customers and diners to create Item 7
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a safe and accessible environment that promotes business success and community connection. The absence of vehicles allows the district to reimagine its public space as a living, walkable community space. If people feel a sense of membership by seeing, meeting and spending time with friends and colleagues on the street there are more likely to be frequent patrons.

These outdoor spaces are functional extensions of businesses and pivotal contributors to a welcoming and vibrant destination. The goal of developing guidelines is to provide a broad framework for businesses to work within. The actual curation and activation of many of the spaces will require investment from the business community to enliven the street.

Street Zones, Patio Locations and Setbacks: Staff and UFS recommend dividing the car-free portion of the California Avenue right-of-way into five zones, as seen in Attachment C. To ensure access to sufficient space by other uses, such as the farmers’ market, the preliminary allocations limit patios to directly in front of the operator’s storefront. Outdoor patios are permitted in three zones as shown in Attachment C.
Frontage Zone
Curbside/Street Furniture Zone
Activity Zone
Attachment D includes two that span between El Camino Real and Mimosa Lane, and from Mimosa Lane to Birch Street. These maps indicate the zones for the respective segments of California Avenue.

The preliminary guidance includes restrictions for a required 8-foot pedestrian path of travel on sidewalks, emergency vehicle access, designated pedestrian paths of travel, emergency accessways, and designated bike lanes or bike racks.

Next Steps for Outdoor Activation Guidelines: Staff is working to sequence the discussion of outdoor activation guidelines with City Council immediately following necessary legislative actions to close the street. While some businesses have expressed eagerness to invest in outdoor spaces, certainty about the condition of the street closure will create a more stable environment and reduce the likelihood of further changes. Next steps include additional stakeholder engagement, leading to bringing the outdoor activation guidelines for Council approval. Staff will continue to work with Urban Field Studios to:
Establish clear guidelines for space layouts, enclosures, and shelter elements to ensure outdoor spaces are functional, visually appealing, and cohesive with the district's character.
Allocate public space to businesses, in a way that balances outdoor dining, retail visibility, and other community uses such as farmers markets and pedestrian zones.

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Enable flexibility in use to permit spaces that have multiple uses throughout the week, such as informal dining or community gathering spaces during non-peak times and the Farmers’ Market on Sundays—to maximize the use and value of the public spaces. Define requirements for design elements such as low and transparent enclosures, umbrellas and awnings to address comfort and visual vibrancy of the street.

Staff anticipates incorporating feedback from stakeholder engagement then bringing the guidelines before City Council to formally adopt them.

Alternative Street Designs
This section provides an update on the development of two design concepts for the transformation of California Avenue into a vibrant, permanent car-free street. The street designs will advance City Council goals for sustainability, economic, and community vitality while addressing public life, mobility, and placemaking.

To date, staff and UFS have defined and confirmed design goals, objectives, evaluation criteria, and programming. The project team has completed the assessment and mapping of existing conditions, including constraints to the multiple functions of the street, for outdoor dining, retail visibility, public life and pedestrian/bike safety.

Currently, UFS is creating two street space allocation studies for additional stakeholder engagement. Following this feedback and engagement, detailed designs and opinion of cost will be prepared for both alternatives, culminating in summary presentations and discussion with ARB, PTC and Council.

Design Alternatives: Two concepts have been developed to reflect varying levels of investment and transformation:

1.Adaptive Street: Focuses on incremental, cost-effective improvements with minimal disruption to existing infrastructure. Key features include:
oSlow two-way bike lanes at center of street.
oDesignated outdoor dining areas.
oResurfacing the street to remove travel markings.
oModifying planting areas to better serve outdoor dining. oFlexible public spaces shared with the farmers’ market. oEnhanced wayfinding and signage for restaurant and retail visibility. oWould require smaller financial investment beyond near-term improvements

2.Reimagined Street: Envisions a tree-lined pedestrian promenade for economic and community vitality, with green infrastructure for climate resilience. Key features include:
oExtensive tree canopy for shade and urban cooling.
oGreen infrastructure for stormwater management and biodiversity. oSlow two-way bike lanes meandering to maximize outdoor dining and public spaces.

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oA large public space for events, markets and gatherings. oExpanded farmers’ market capacity.
oPublic art as civic design
oUrban ecosystem with native plant beds and permeable surfaces. oWould require significant financial investment beyond near-term improvements Next Steps for Alternative Street Designs: City staff and UFS will continue work with community members and merchants for input on space allocation studies, including feedback on activities (social, cultural and recreational), spatial requirements and location for public spaces. Based on community and merchant feedback, street design plans and preliminary cost estimates will be developed. Staff will bring these to the Architectural Review Board and Planning and Transportation Commission for review and input this spring before returning to City Council with refined concepts and next steps.

Partnering for California Avenue’s Success
Transforming California Avenue into a vibrant, car-free main street requires a collective effort by the City, property owners, merchants and residents. A thriving California Avenue will attract more customers and visitors, encourage longer stays, and support the success of local businesses. Each party has an essential role to play, and this vision cannot be achieved without partnership.

The City is taking the first step by developing a vision for outdoor activation and the design of California Avenue, in collaboration with merchants and the community. In addition, the City is changing zoning regulations, implementing near-term improvements, and considering longer- term investments to support economic vitality. The City is committed to support economic development through policy, regulation, outreach, visioning, and targeted investments.

Sustained success depends on active participation by property and business owners, who are key to realizing this vision. Merchants, for example, will lead the way in implementing the outdoor activation program by upgrading outdoor dining spaces to meet new standards.

Property owners can attract new tenants, promote opportunities for retail and invest in building and tenant improvements. In the longer term, elements such as the Outdoor Activation Guidelines may best be administered by a business association as a common-area partnership rather than enforced by the City as a regulatory function.

This process is an invitation to collaborate. By working together, we can create a California Avenue that reflects the best of our community and fulfills our common aspirations for a car- free, vibrant, and thriving main street.

FISCAL/RESOURCE IMPACT
The Study Session does not require additional funding at this time. To date, the City Council has approved contractual costs of $264,708 for the work of Urban Field Studio and expenditures on interim improvements have been funded through operating budgets and pandemic allocations.

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On December 16, 2024 the City Council increased the contract with O’Grady paving for immediate near-term improvements on California Avenue (as discussed earlier in this report).

The cost of these near-term improvements, including bollard installation, planters, stamped concrete, grinding/repaving of pavement and work at the California Ave & El Camino Real intersection is approximately $825,000. Any additional costs for project-specific investments will be further refined and discussed with the City Council as the project elements, such as implementation of the signage plan, continue to take shape.

STAKEHOLDER ENGAGEMENT
Stakeholder engagement is discussed extensively in the background section of this report. It directly informed project outputs to date and will continue to be proactively addressed as the project continues. Staff will also be engaging Cal. Ave. community stakeholders to inform them about the study session and encourage their participation.

ENVIRONMENTAL REVIEW As described earlier in this report, CEQA review related to amending the circulation element of the City’s Comprehensive Plan is underway and will be brought forward to the Planning and Transportation Commission and City Council as required by CEQA.

ATTACHMENTS
Attachment A - Outreach Summary by Topic by Month
Attachment B - Preliminary Cal Ave Place Identity & Signage Plan Attachment C - Outdoor Activation Guidelines Street Zones Attachment D – Outdoor Activation Guidelines Setback Maps APPROVED BY:

Ed Shikada, City Manager
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Street Zones

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: February 3, 2025
Report #:2501-4018
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, Including Parking Requirements Near Transit Stations in Accordance with AB 2097. CEQA Status - Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6-1, Kou no; and Pulled from Consent Calendar on December 16, 2024)

RECOMMENDATION
Staff recommends the City Council:

1. Adopt or modify the attached ordinance that clarifies existing land use regulations and implements State housings laws adopted in 2023 and earlier.

BACKGROUND
This report transmits an ordinance implementing six state laws from the 2023 State legislative cycle or earlier. Some minor clean up amendments are also included unrelated to State law that do not have any meaningful policy implications but clarify existing municipal code provisions.

This ordinance was introduced on November 12, 2024, following prior discussion by the Planning and Transportation Commission and tangential Council discussion during deliberation of the North Ventura Coordinated Area Plan earlier in the year – at least with respect to AB 2097. AB 2907 is a state law that precludes local vehicle parking requirements for development within one-half of a mile from transit stations. On November 12, 2024, the City Council directed staff to require accessible and electric vehicle parking based on the amount of parking that would have been required had AB 2097 not been enacted. Prior to this direction, staff only applied accessible and electric vehicle parking based on the amount of parking actually provided on-site as part of a development.

Other state laws addressed in the ordinance were discussed by Council but did not solicit the same engagement as AB 2097 and required no ordinance changes. On December 16, 2024, staff placed the subject ordinance, requiring accessible and electric vehicle parking based on Item 8
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the amount of parking that would have been required had AB 2097 not been enacted, on the consent calendar as a re-introduction and first reading as opposed to a second reading due to unanswered policy questions that arose from the Council’s motion following the hearing. Staff addressed those issues as described in the attached December 16th report. Also available online for additional context is the November 12, 2024 staff report.1 The City Council received one comment letter related to the re-introduced ordinance on the December 16th consent calendar encouraging the City Council to reconsider its policy direction on AB 2097. The item was pulled from the agenda by then Vice Mayor Lauing and Councilmembers Lythcott-Haims and Tanaka for future discussion.

Note – the attached ordinance differs slightly from the version presented on December 16, 2024; one of the code amendments previously included in this ordinance was consolidated into another ordinance amending the same code section, which was adopted by the Council in January 2025.

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
Attachment B: December 16, 2024 Staff Report (w/o ordinance attachment) Attachment C: Comment Letter (AB 2097)
APPROVED BY:

Jonathan Lait, Planning and Development Services Director 1 November 12, 2024 Staff Report: https://portal.laserfiche.com/Portal/DocView.aspx?id=104911&repo=r- 704298fc&searchid=928bcf39-a111-4afe-a184-01d9e16eb6b5
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Item 8
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

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Item 8
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

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Item 8
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
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(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

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Amending Palo Alto
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(Subdivisions and Other
Divisions of Land) to
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Regulations and to
Implement Recent State
Housing Laws

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Regulations and to
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Housing Laws

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(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

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Item 8
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Amending Palo Alto
Municipal Code Title 18
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(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

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Item 8
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

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Item 8
Attachment A - Ordinance
Amending Palo Alto
Municipal Code Title 18
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(Subdivisions and Other
Divisions of Land) to
Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

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16, 2024 Staff Report
(w/o ordinance
attachment)

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16, 2024 Staff Report
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Comment (AB 2097)

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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORT
Lead Department: Planning and Development Services
Meeting Date: February 3, 2025
Report #:2412-3876
TITLE
Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2024

RECOMMENDATION
This is an informational report and City Council action is not required.

EXECUTIVE SUMMARY
This report transmits the reporting of the vacancy rates of properties containing three or more residential rental units for 2024. The vacancy rate was below the 3% threshold at 1.19% for the first half of 2024 and 1.25% for the second half of 2024; therefore, applications to convert residential rental to ownership units via a subdivision process are not eligible for consideration.

BACKGROUND
Planning and Development Services staff prepare the Residential Vacancy Rate Determination Report twice a year to meet the requirements of Palo Alto Municipal Code (PAMC) Section

21.40.040, Determination of Vacancy Rate and Surplus. PAMC Section 21.40.0401 states the following:

In April and November of each year, the director of planning and community environment shall determine from the city utility meter records the vacancy rate and the vacancy surplus, if any, within the city limits. New market-priced rental units available to the general public, for which a certificate of use and occupancy has been issued since the last vacancy survey, shall be added on a unit-for-unit basis either to reduce the vacancy deficiency or to increase the vacancy surplus.

All conversions involving a change in the type of ownership of three or more rental units are subject to the provisions of this chapter. Vacancy surplus in this section of the Municipal Code is defined as the number of rental units being offered for rent or lease more than the 3% vacancy rate. The City cannot accept tentative or preliminary parcel map applications for subdivisions created from conversions unless there is a vacancy surplus of 3% or more as of the most recent determination. This rule is set forth in PAMC Section 21.40.040. 1 Municipal Code Chapter 21.40: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-83254 Item 10
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The purpose of the regulations pursuant to PAMC 21.40.040 is to seek a reasonable balance of rental and ownership housing in the City in a variety of individual choices of tenure, type, price, and location of housing. The provisions are also intended to protect the supply of multi-family rental housing stock in the City for low- and moderate-income families, and to reduce and avoid displacement of tenants, particularly seniors and families.

ANALYSIS
The multifamily rental vacancy rate was 1.19% in April 2024 and 1.25% in November of 2024.

These percentages represent a decrease from the annual vacancy average of 2023 but are still higher compared to 2021 and 2022 annual averages. Further details can be found in Table 1.

Table 1: Average Annual Rental Vacancy Rates
Year Estimated Housing Units3
Utility Accounts Deemed
Vacant
Estimated Vacancy Rate
(Average)4
2015 7,901 92 1.22%
2016 7,912 118 1.45%
2017 7,928 131 1.58%
2018 7,928 132 1.52%
2019 7,931 141 1.83%
2020 8,057 226 2.80%
2021 8,057 55 1.13%
2022 8,057 56 1.16%
2023 8,057 68 1.32%
2024 (1st half) 8,057 58 1.19%
2024 (2nd half) 8,057 61 1.25%
Staff prepared this analysis per PAMC Section 21.40.040 using the City of Palo Alto’s utility meter records. These records reveal the total number of “active” multi-family apartments and allow staff to determine the percentage of “vacant” multi-family apartments. Utility accounts associated with three or more rental units were identified.

Staff acknowledge there may be gaps and inconsistencies in this data methodology. Multi- family properties could have different types of utility accounts and for various reasons, not all 3 The U.S. Census Bureau Decennial Census 2010 data is used as a baseline for the total rental stock data in Palo Alto and changes (addition or demolition) to the total rental dwelling unit stock are tracked by staff biannually using the City of Palo Alto’s land use management system (Accela) to generate the vacancy rate. Staff expected to update the baseline with the release of the 2020 Decennial Census; however, the U.S. Census Bureau decided to discontinue the rental data point and staff will continue to use the original methodology. 4 This percentage is the number of utility accounts deemed “vacant” divided by the utility accounts sample size.

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accounts could be identified. Examples of data limitations include but are not limited to, addresses between databases may not match utility account addresses, there is not a one-to- one relationship between estimated three or more rental housing units and three or more rental unit utility accounts, instances where a property has one utility meter or all meters are billed to the property manager/owner, and some units with legacy “inactive” accounts may be vacant or no longer available to rent altogether. Accordingly, the data included in this analysis represents staff’s best-effort to address these discrepancies.

With the implementation of the new Rental Registry Program (RRP) in October 2024, staff will explore the feasibility of using the data collected through the program for more accurate vacancy rates for three or more rental units as the program develops.

FISCAL/RESOURCE IMPACT
Planning staff prepares this report biannually and there are no resource impacts.

STAKEHOLDER ENGAGEMENT
This is an informational report for the City Council and does not require any stakeholder engagement.

ENVIRONMENTAL REVIEW
This project is exempt from environmental review under Section 15061 of the California Environmental Quality Act Guidelines.

ATTACHMENTS
None
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 10
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City Council
Staff Report
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: February 3, 2025
Report #:2501-4006
TITLE
City of Palo Alto Monthly Investment Report December 2024 (Unaudited)

ATTACHMENTS
Attachment A: December 2024 Monthly Investment Activity Report APPROVED BY:

Lauren Lai
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2024 Monthly Investment
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: February 3, 2025
Report #:2501-4016
TITLE
Interim Appointments for Utilities Director and Chief Transportation Official

RECOMMENDATION
This report is provided for information only and requires no Council action.

This memo announces two interim appointments effective January 8, 2025, as a result of the retirement of Dean Batchelor as the City’s Utilities Director and departure of Philip Kamhi, the City’s Chief Transportation Official. Recruitment and hiring processes are underway; interim appointees will continue until the City Manager makes and Council ratifies permanent appointments.

Interim Utilities Director - Kiely Nosé, Palo Alto’s Assistant City Manager, will act as interim Utilities Director. Nose will continue in her current capacity as Assistant City Manager and lead the Utilities Department along with the support of the existing Utilities leadership, notably the Utilities Chief Operating Officer and Assistant Directors. Since her appointment as Assistant City Manager in 2022, Nose has provided leadership and guidance to the Utilities Director and management teams and has acted as a City delegate at the Northern California Power Agency.

Nose’s experience as the City’s Chief Financial Officer (CFO)/Director of Administrative Services offers a broad set of skills to support the Utilities team to ensure forward momentum on utilities service delivery and priorities.

Interim Chief Transportation Official - Lily Lim-Tsao, retired San Jose Transportation Department Assistant Director will act as interim Chief Transportation Official. Lim-Tsao retired from San Jose in early 2024 and brings extensive experience in transportation to support the Office of Transportation team and continued progress on Palo Alto’s transportation priorities.

Recruitments are underway for both of these key leadership positions. City Manager Item 12
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appointments are subject to Council approval as provided in the Palo Alto Charter (Art. VI, Sec. 6(c)) and Municipal Code (PAMC 2.08.020).

APPROVED BY:

Ed Shikada, City Manager
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