City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: March 10, 2025
Report #:2502-4145
TITLE
Adoption of an Interim Urgency Ordinance Amending Palo Alto Municipal Code (PAMC) Section
18.40.160 to Allow for Early Demolition or Deconstruction on Contaminated Sites. CEQA status – exempt under CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Staff recommends that Council take the following action:
1. Adopt, by a four-fifths majority, the attached Interim Urgency Ordinance amending PAMC Section 18.40.160 to Allow for Early Demolition or Deconstruction on Contaminated Sites.
BACKGROUND
City Council originally adopted PAMC Section 18.40.160 in early 2017 as part of a larger zoning code update. The intent at the time was to codify the City’s long-standing practice of requiring a replacement project be approved prior to demolition of an existing building.1 The code section has since been amended in minor ways in 2021,2 2022,3 and 2023,4 such as to add deconstruction (in addition to demolition) through an interim urgency ordinance and in a permanent ordinance as well as to update code references. Council recently approved an additional amendment on February 10, 2024, to address required modifications to further enforce the City’s no net loss of housing requirements, as required in accordance with Housing 1 The Staff report for the February 27, 2017 Council hearing is available online at:
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2017/id-7373.pdf
2 Ordinance 5538 is available online at: https://portal.laserfiche.com/Portal/DocView.aspx?id=24478&repo=r- 704298fc
3 Ordinance 5542 is available online at: https://portal.laserfiche.com/Portal/DocView.aspx?id=24458&repo=r- 704298fc
4 Ordinance 5587 is available online at: https://portal.laserfiche.com/Portal/DocView.aspx?id=66271&repo=r- 704298fc
Element Policy 4.1, which requires replacement housing when existing housing is demolished.
The text shown as existing in Attachment A reflects this modification.
The proposed interim urgency ordinance would further amend PAMC Section 18.40.160, allowing deconstruction of existing buildings in limited circumstances so that remediation of these sites can occur as soon as possible. As an urgency ordinance pursuant to PAMC Section
2.04.270(d), it would become effective immediately upon adoption by a four-fifths majority of the Council. It would be in effect for one year following its adoption, unless extended by the Council or superseded by replacement legislation.
ANALYSIS
Currently, building permits for a replacement project must be approved prior to issuance of a demolition or deconstruction permit for that property. However, where sites may have contamination from past uses, remediation for their safe use for housing can take years to complete, depending on the nature and extent of that contamination. This interim urgency ordinance would allow for sites to begin this cleanup action immediately, without approval of final entitlement and building permits. The change will eliminate delays in the preparation of contaminated sites to host new housing units while also allowing for faster cleanup of contamination for the protection of the environment.
The proposed code amendment contains the following key criteria that sites must meet and comply with in order to utilize this code provision:
•Must be on a property that is eligible for inclusion on any list of hazardous materials release sites maintained pursuant to California Government Code Section 65962.5 (as maintained by the Environmental Protection Agency);
•Must remediate to residential environmental screening levels as set forth by the Regional Water Quality Control Board;
•Cannot be a site that is listed or eligible for listing in the California Register (note that any site listed on the National Register is also eligible for the California Register); •May not require demolition of an existing residential use on a portion of the property in order to complete remediation; and
•If on a Housing Inventory Site, must record a covenant that ensures that any site invoking this provision may only be developed as a Housing Inventory Site for as long as the site remains on the Housing Element Sites Inventory.
This ordinance would not itself authorize any deconstruction, demolition, or environmental cleanup work, nor would it alter the State or local permitting processes that currently apply to demolition or other work on contaminated sites. The ordinance would change only the timing of when a property owner may apply for a demolition or deconstruction permit, so that remediation of hazardous conditions on a site may proceed even if a replacement project has not yet been approved. Cleanup work would continue to occur in accordance with site cleanup regulations overseen by relevant oversight agencies (including Department of Toxic Substances Control, Regional Water Quality Control Board, or County of Santa Clara Department of Environmental Health). These agencies require preparation and approval of cleanup plans and site management plans to ensure that the remediation is completed safely for the benefit of workers, future uses, surrounding properties, disposal purposes, etc.
There are approximately 180 sites across the City that could utilize this code provision; however, the vast majority of these sites are identified as sites with former leaking underground storage tank contamination on the Geotracker database, which would not necessarily require demolition of an existing building to complete cleanup. Moreover, about half of these cases are considered closed. Closed cases may still require further cleanup to occur for the purposes of a proposed residential use if remediation only occurred to the extent necessary for a planned commercial use. But these cases similarly are less likely to require removal of existing structures in order to complete remediation work.
FISCAL/RESOURCE IMPACT
There are no fiscal or resource impacts associated with the action.
STAKEHOLDER ENGAGEMENT
Notice of a public hearing for this project was published online and in the Daily Post on February 28, which is 10 days in advance of the meeting.
ENVIRONMENTAL REVIEW
Adoption of this ordinance is exempt from CEQA review under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The Ordinance does not itself authorize any work that could impact the environment or alter the state or local permitting process that currently applies to demolition or other work on contaminated sites. By removing a local procedural requirement, the ordinance changes only the timing of when a property owner may apply for a demolition permit.
ATTACHMENTS
Attachment A: Interim Urgency Ordinance
APPROVED BY:
Jonathan Lait, Planning and Development Services Director