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Item 5 Staff Report

Palo Alto City Council
March 10, 2025

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Item 5 Staff Report
Meeting
March 10, 2025
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Palo Alto City Council
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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
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: March 10, 2025
Report #:2501-4073
TITLE
Approval of a Professional Services Contract Number C25191402 with Rami and Associates in an Amount Not to Exceed $1,979,902 for Development of San Antonio Road Area Plan for a Period of Three Years. CEQA Status: Exempt under CEQA Guidelines 15262.

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Contact No. C25191402 (Attachment A) with Raimi and Associates, to prepare the San Antonio Road Area Plan over a three-year term in the amount not-to-exceed $1,979,902, including $1,799,911 for basic services and $179,991 for additional services.

EXECUTIVE SUMMARY
The City Council adopted Resolution No. 101251 to establish a new Priority Development Area (PDA) in South Palo Alto, named the Bayshore Alma San Antonio (BASA) Priority Development Area to prioritize future planning efforts and enable the City to apply for regional funding for planning and other technical assistance grants administered by the Metropolitan Transportation Commission (MTC).

The City issued a Request for Proposals (RFP) in June of 2024 to develop the City’s San Antonio Road Area Plan (SARAP). Staff reviewed the proposals, interviewed the respondents, and selected Raimi and Associates to provide planning and consulting services for the San Antonio Road Area Plan. Staff recommends that City Council approve and enter into a thirty-six-month contract with Raimi and Associates for an amount of $1,979,902.

BACKGROUND
In 2008, the State passed Senate Bill 375 (SB 375), directing the California Air Resources Board to set regional targets for reducing greenhouse gas (GHG) emissions through the development of regional plans that combined land use and transportation planning. 1 Resolution No. 10125 September 18, 2023

MTC and the Association of Bay Area Governments (ABAG) consider PDAs regional growth geographies that bring transit, jobs, and housing together resulting in reduced emissions and limited development impacts on the community and the environment. MTC and ABAG required submittal of any proposed or modified PDAs by July 31, 2023, and staff submitted the proposed BASA PDA for MTC/ABAG’s consideration on July 31, 2023. MTC/ABAG reviewed the initial BASA PDA boundary on September 08, 2023, confirmed eligibility, and recommended support with no changes to the proposed boundary area.

The BASA PDA boundary was developed based on the awareness of significant City efforts in the area. On September 18, 2023, the City Council adopted a resolution2 to establish the proposed BASA PDA in South Palo Alto and conduct planning work, creating an area plan and/or technical studies to facilitate neighborhood planning integrating land use and transportation and other elements that would advance the goals of the City’s 2022 Sustainability and Climate Action Plan (S/CAP).

Following direction from the City Council, staff prioritized mixed-use development along the San Antonio Road Corridor and identified opportunity sites within the ROLM and GM zones as a part of the 2023-2031 Housing Element update. Many of the sites are currently zoned Research/Office/Limited Manufacturing (ROLM) and General Manufacturing (GM). The Housing Element also includes Implementation Program 6.6C related to the creation of an area plan along San Antonio Road.

The City issued an RFP in June 2024 seeking consulting services to establish goals, policies, and implementation programs for land use, transportation, critical infrastructure, and other improvements that will support the redevelopment of the area surrounding San Antonio Road.

The key components of the Area Plan as outlined in the RFP include:
•Public outreach and engagement;
•Accelerating housing production;
•Creating cohesive mixed-use walkable/ bikeable neighborhoods; •Establishing complete streets to facilitate multimodality; •Improving safety and convenient access to schools, retail, and places of interest; •Improving crossings at major intersections;
•Easing access to San Antonio Caltrain Station;
•Establishing consistency with the City’s adopted Sustainability and Climate Action Plan greenhouse gas reduction goals;
•Enhancing open space and streetscape improvements;
•Creating opportunities to enhance economic vitality and third places; and 2 Resolution No. 10125, dated September 18, 2023
•Drafting an Infrastructure Financing Plan.

Raimi and Associates provided a comprehensive proposal specifically addressing the elements listed in the RFP. The final scope of work and contract budget however was increased from the initial proposal to include additional scope including community engagement. The final budget of $1,979,902 for the scope of services provided by the consultant team does not exceed the $2,150,000 budget allocated by the City Council for the SARAP.

ANALYSIS
The SARAP, like other Area Plans that the City has embarked on in the past, will require extensive community and business outreach and participation, including facilitation of a Community Advisory Group that will be appointed by the City Manager or designee. The Community Advisory Group will serve an advisory role providing feedback to the project team at key junctures of the project (e.g., prior to community workshops, and/or to review key reports and the draft Plan). SARAP preparation will also involve coordination with regional and local stakeholders, such as housing advocates, business leaders, school districts, Committees and Boards representing community interest, staff, and other stakeholders in the City of Mountain View, Caltrans, Santa Clara Valley Transportation Authority (VTA), and the Santa Clara Valley Water District. Additionally, a Technical Advisory Group consisting of staff from key City departments will be formed to provide detailed technical input throughout the planning process and help ensure alignment between this Plan and other local and regional planning efforts.

While a consultant team will be responsible for completing work on the SARAP, City staff from Planning and Development Services Department will project manage the effort.

The project team will meet with the City Council, and other decision-making and advisory Commissions, Committees, and Boards throughout the planning process to ensure that the Area Plan is on track and consistent with the identified goals and objectives. Upon completion of the Area Plan, the Planning and Transportation Commission will make a recommendation to the City Council.

Solicitation Process
The City issued an RFP on OpenGov Procurement, the City’s eProcurement platform for professional services for preparation of the SARAP on June 20, 2024. A pre-proposal meeting was held on July 11, 2024, to discuss the scope of the project and answer questions from interested consulting firms. The pre-proposal meeting was well attended, and the City received four proposals from interested firms on September 4, 2024. Table 1 summarizes the RFP process.

Table 1: Summary of RFP Process
Proposal description RFP191402 San Antonio Road Area Plan Proposed Length of Project 3 years
Number of Vendors Notified 3170
Number of Proposal Packages
Downloaded
74 Total Days to Respond to Proposal 76 days
Pre-Proposal Meeting Yes
Pre-Proposal Meeting Date July 11, 2024
Number of Proposals Received 4
Proposal Price Range $1,227,268 - $1,561,430
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/101688
The City received four proposals for the SARAP RFP issued. Staff formed a review panel of six members following the standard procedures to review the proposals received, evaluate them based on the scoring criteria established, and conduct interviews to issue an Intent to Award the contract to the selected firm. The proposals received from Skidmore Owings and Merrill LLC (SOM), Moore Iacofano Goltsman LLC (MIG), and Raimi and Associates, were qualified set of consultant teams that have prior experience working in the region and projects of a similar scale and complexity. The proposal received from M/S Sietricon was deemed incomplete and disqualified from further review. The qualified firms that submitted complete proposals met the intent of the RFP and were invited for an in-person interview as a part of the review process.

The proposed cost for the scope of services provided by the firms ranged between $1,227,268 and $1,561,430, with Raimi + Associates submitting an initial proposed budget of $1,340,576.

Raimi and Associates provided a comprehensive proposal that specifically addressed the elements listed in the RFP and exhibited high engagement in the SARAP development. They also met all the evaluation criteria established and were selected for their experience working in the region with similar jurisdictions, their approach and knowledge to providing solutions to key issues identified in the area, and their approach to public engagement. The final scope of work and contract budget was adjusted and increased from the initial proposal based on past planning projects to include additional stakeholder engagement, transportation studies, project management and coordination time, and a 10% contingency. The final budget of $1,979,902 for the scope of services provided by the consultant team does not exceed the budget allocated by the City Council for the SARAP. A detailed scope of services to be provided by Raimi and Associates is outlined in Attachment A. The key components of the scope of services provided by Raimi and Associates include:
•Task 1 – Community Outreach and Engagement
•Task 2 – Existing Conditions Assessment
•Task 3 – Land Use and Mobility Alternatives
•Task 4 – Analysis and Policy Recommendations
•Task 5 – Area Plan Development and Adoption
Various subtasks necessary to complete the components listed above are detailed more extensively in the contract’s scope of services.

Project Schedule
The SARAP contract is for three years. The planning effort would commence upon approval of the contract by the City Council. It is anticipated that many of the project tasks will run concurrently (e.g., public outreach and engagement will be ongoing throughout the project while assessments and technical studies are being prepared). This is to ensure progress is made at a steady and consistent pace, incorporating recurring feedback and input received through an iterative process from the public, the decision-making bodies, and other committees.

POLICY IMPLICATIONS
The identified boundary of the SARAP is approximately 275.3 acres of industrial, office, service commercial, and residential uses with 53 identified Housing Opportunity Sites that have the potential to be transformed into residential and/or mixed-use development. This is consistent with prior Council direction to further implement the City’s Comprehensive Plan and the Housing Element. Policy L2.4.1 from the Land Use and Community Design Element of the Comprehensive Plan directs the Housing Element to increase housing sites along San Antonio Road between Middlefield Road and East Charleston Road.

The Housing Element Implementation Program 6.6C directs the City to prepare an area plan for the San Antonio Corridor, through collaboration with local organizations and residents to facilitate neighborhood planning that integrates housing with safe multi-modal transportation, amenities, and improvements; that mitigate environmental impacts.

FISCAL/RESOURCE IMPACT
In Fiscal Year 2024, the City Council approved $2.1 million in funding for consultant services for the preparation of the SARAP, to be allocated over four fiscal years as follows:
▪FY 2024: $50,000
▪FY 2025 - FY 2027: $700,000 per year
The contract with Raimi and Associates is for a total not-to-exceed amount of $1,979,902, which falls within the previously approved budget.

Any additional budget allocations would be considered through the annual or mid-year budget process. A delay in project completion due to an expanded scope of work could increase consultant costs, requiring further General Fund allocations. However, no additional funding is requested at this time, as the approved budget is sufficient for the current scope of work.

STAKEHOLDER ENGAGEMENT
The RFP for the SARAP contract was posted on OpenGov eProcurement platform and vendors were notified by the City. The solicitation period that lasted 76 days, closed on September 04, 2024. The City received a total of four proposals and invited three of the four respondents for an in-person interview.

For the SARAP itself, community engagement is an important part of the Area Plan development. The stakeholder outreach and engagement component include a plethora of stakeholder engagement activities such as Community Workshops, Pop-Ups, Surveys, and other web-based interactive tools to help gather feedback from the community and key stakeholders.

Task 2.10: Council/ Commission/ Committee Study Sessions and Updates of the Contract Scope of Work outlines the various phases of the project where the feedback of the decision-making bodies will be sought by the project team. It is anticipated that the project team will hold four rounds of study sessions with Planning Commission and the City Council to provide updates and seek feedback as necessary during the visioning, land use and mobility alternatives, preferred land use and mobility, and the policy recommendation stages of the planning effort. These study sessions with the decision-making bodies will be facilitated in addition to the regular updates that the Council will receive, community workshops, pop-ups, surveys, other engagement activities, and the adoption hearings.

ENVIRONMENTAL REVIEW
The approval of an agreement for consulting services is not an action subject to environmental review under the California Environmental Quality Act (CEQA).

ATTACHMENTS
Attachment A: San Antonio Road Area Plan Contract C25191402 APPROVED BY:

Jonathan Lait, Planning and Development Services Director

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