Palo Alto City Council
April 7, 2025

The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively.

At the request of CITY, acting by its P roject Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY’s request.

CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.

If the certified payroll records are not provided as required within the 10 -day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.

Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s Project Manager within five (5) business days of any change of location of those payroll records.

Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one -half (1&1/2) times the basic rate of pay, as provided in Section 1815.

CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to s ecure the payment of workers’ compensation to its employees before beginning work (Labor Code 1861).

CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).

CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.

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Inc.; Contract
C25193590B

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

EXHIBIT F
Claims for Public Contract Code Section 9204 Public Works Projects

The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement.

1. Claim Definition. “Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:

(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City.

2. Claim Process.

(A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived.

(B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events.

Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost.

Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.

(C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2.

(D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

(E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply.

3. Disputed Claims

(A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement.

(B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws.

(i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

(ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.

5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum.

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

7. Waiver of Provisions . A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

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C25193590B

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Professional Services
Rev. Jan 29, 2024

CITY OF PALO ALTO CONTRACT NO. C25193590C

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND PARK ENGINEERING, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 17th day of March, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PARK ENGINEERING, INC., a corporation, located at 372 Village Square, Orinda, CA 94563 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to support Utilities Department capital projects for its Electric and Fiber Engineering Divisions ( the “Project”) and desires to engage a consultant to provide field inspections and construction management services on an on-call, as-needed, time-limited basis in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on- call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on- call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, s hall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of s ervices, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for on-call Services shall be specified by CITY in the Task Order, based on Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

The term of this Agreement shall be from the date of its full execution through March 16, 2038 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION. The CITY is engaging multiple consultants, none of whom, including the CONSULTANT under this Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work is performed by any one or more such consultants, CITY will ensure that total compensation to all such consultants w ill not exceed an aggregate of Six Million Dollars ($6,000,000.00) among all consultants over the three-year Term of this Agreement.

The compensation to be paid to CONSULTANT, if selected for performance of the Services, shall be based on the compensation structure detailed in one or more Task Order(s) in the format of Exhibit A-1, based on hourly schedule of rates set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which pa yment has not been expressly set forth in the rate schedule and/or a Task Order shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of D ollars ($ ) for the performance of Additional Services ( as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Dollars ($ ) , as detailed in Exhibit C.

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“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .

CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s superv ision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to per form the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

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SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely resp onsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated con struction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The partie s agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the pri or written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.

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SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

Zoon Engineering, Inc.

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Jaemin Park , Telephone: 925-818-3756, Email: [email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s P roject Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Mohammad Fattah , Utilities Department, Electric and Fiber Engineering Division, 1007 Elwell Court, Palo Alto, CA , 94303, Telephone: 650-329-2385, Email: [email protected]. CITY’s P roject Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expirati on or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

16.2. Notwithstanding the above, nothing in this Section 1 6 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSUL TANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to C ONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT further c ovenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

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22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregna ncy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations.

CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California De partment of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq. ), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.) , as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or ma intenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR.

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “ Claims for Public Contract Code Section 9204 Public Works Projects”.

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SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings , either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Munic ipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204

PUBLIC WORKS PROJECTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT NO. C25193590C SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________
City Attorney or designee

PARK ENGINEERING, INC.

By:_________________________________

Name:_______________________________

Title: _______________________________

By:_________________________________

Name:_______________________________

Title: _______________________________

Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Jaemin Park
President/CEO/CFO
Stephen Patterson
Vice President
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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.

A. Governing Construction General Standards:

Standards and references listed below shall be applicable to Task Orders I, II, and III;

Electric/Fiber Optic:

The Field Inspection & Construction Project Manager shall perform services in accordance with the most recent City of Palo Alto Utilities (CPAU) Electric Construction Standards manual; CPAU Electric Service Requirements manual; CPAU Safety Rules manual; CPAU plans, Permits and other documents governing the construction of the project; California Public Utilities Commission (CPUC) General Orders 95, 128 & 165, rules for construction and maintenance of overhead and underground electric supply and communication systems ; and pollution prevention practices outlined in Stormwater Pollution Prevention Plan (SWPPP).

B. Governing Qualifications:

The standards and references listed below shall be applicable to Services described in Sections I, II, and III below.

Personnel qualifications and staffing levels for City projects shall be subject to the approval of the City’s specific Project Engineer assigned , and as set forth in a Task Order for the specific utility project. It is expected the Consultant provide appropriately experienced personnel corresponding to the utility project inspection request. The City’s Project Engineer shall reserve the right to review the resume and interview any new proposed consultant personnel for City projects. References of prior inspection experience shall be available for all Consultant staff and may be requested by City at any time during the Contract.

Electric/Fiber Optic:

The Consultant Electrical/Fiber Optic Field Inspector assigned to work on CPAU’s Projects shall have a minimum of 10 years’ experience working for an Investor-Owned Electric Utility Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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and/or a Municipal Public Utility in the areas of overhead and underground construction, maintenance, and inspection with a working knowledge of CPUC General Orders 95, 128, & 168. The Field Inspector shall have the ability to make sound decisions, to communicate with others, and to assimilate and understand information in a manner consistent with the essential job functions. The Consultant’s personnel shall maintain the physical condition appropriate to the performance of the assigned duties which may include walking or standing for extended periods of time.

Additionally, Consultant Construction Managers must possess a B.S. in Construction Management, Electrical Engineering, or another relevant field.

I. CO NSULTANT TO PROVIDE CONSTRUCTION FIELD INSPECTION:

A. Construction Inspection Services Overview

Consultant shall provide professional services for field inspection of City’s capital improvement projects and/or private development projects. Projects will involve overhead/underground electrical and fiber optic utilities. Examples of general duties:
oversight of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; construction management; project or schedule coordination; compliance to safety requirements and approved traffic control plans; communication with City staff, contractor, customers, and the public; preparation of record drawings, construction daily reports, and other pertinent documents; etc. The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in electric and fiber optic, construction practices and standards.

Inspection services will be provided on an “as requested” basis. It is expected that the inspector(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the inspector(s) will be available on-site in Palo Alto within 48 hours after successful completion of a background check. Inspection services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40-hour work week. The work schedule will be specified at the beginning of each project and documented in each Task Order (Exhibit A-1).

B. General Work Description

The Consultant Field Inspector shall inspect new overhead and underground utility installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes.

The Field Inspector’s responsibilities may include, but are not limited to the following:

1. Performs duties described in CPAU Inspector Checklist.

2. Maintains a daily log of construction project activity, incidents, tracks job status.

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3. Complete, sign, and submit progress daily reports for approval of the City Project Manager.

4. Ensures that all applicable utility rules, codes and safety regulations are complied with.

5. Ensures all material used and facilities constructed are in accordance with approved submittals, applicable plans, specifications, and CPAU Utility Standards.

6. Notifies contractors and the City’s project Engineer/Construction Project Engineer of non- compliance with the contract plans, specifications, and CPAU Utility Standards in a timely manner.

7. Reports and documents safety, compliance infractions, and unsafe work procedures.

8. Prepares inspection documentation for the development of progress payments for the project construction contractor.

9. Assists in preparing punch lists of uncompleted work, non -conformance reports, and deficiency notices.

10. Certifies as to the acceptability of each project upon its completion.

11. Conducts and generates agenda minutes of weekly field meetings.

12. Documents installed work on the as-built/record drawings daily (this may include the use of GPS equipment for data acquisition) and submits documentation as requested.

13. Documents project status with photographs and keeps project folders updated.

14. The consultant shall conduct Site Safety Inspections and work with the construction contractor at the start of projects on an “as-needed” basis.

15. Acts as the liaison between City staff, construction contractor, utility customers, and the public.

16. Coordinates the schedule between the construction contractor and Operations staff if needed.

17. Complete appropriate City required training/certification.

18. Quantify and confirm the good condition of materials provided by City from MSC/warehouse.

19. Enforce applicable permit requirements to the project construction contractor.

C. Documentation & Deliverables

The Consultant Field Inspector shall maintain a daily journal/diary for each day the inspector performs work on the project. The contents of the diary shall consist of brief, accurate statements of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City’s assigned Project Engineer and will become a part of the permanent project record. The Field Inspector shall document field as - built drawings/notes daily and transfer the field as-built drawings/notes to a final as-built set daily or weekly. The final as -built drawings must be reviewed by the City Project Engineer weekly. Field inspection photos, incident reports, and sewer lateral inspection reports must be completed and submitted to City as required.

Any safety violations and inspection infractions found are to be communicated to the City and construction contractor in real-time as they are discovered.

Once a month, an electronic effort summary report (web-based or in MS Word or MS Excel format) shall be sent to the City Project Engineer summarizing job highlights related to the consultant’s work hours, as well as the equipment inspected, and any infractions found.

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II. CONSULTANT TO PROVIDE CONSTRUCTION MANAGEMENT:

A. Construction Management Overview

Consultant shall provide professional services for construction management of the City’s capital improvement projects and/or private development projects. Projects will involve overhead/underground electrical and fiber optic utilities. Examples of general duties:
• Construction management of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; • Communication with City staff, construction contractor, customers, and the public; • Prepare and lead online/field weekly construction meetings; • Track, plan, and coordinate construction or project schedule with City staff and City’s Project Manager; preparation and processing of field orders, change orders, request for information, permits, invoices, etc.;
• Review, check, and process approval of Contractor submittals; • Review and check Contractor -submitted construction GPS points and sewer lateral video inspections;
The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in electric and fiber optic construction practices and standards.

Construction management services will be provided on an “as requested” basis. It is expected that the consultant construction manager(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the construction project manager(s) will be available on -site in Palo Alto within 48 hours of the aft er successful completion of a background check. Construction management services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40 -hour work week. The work schedule will be specified at the beginning of each City project and documented in each Task Order (Exhibit A-1).

B. General Work Description

The Construction Project Manager shall manage new underground utility installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes.

The Construction Project Manager’s responsibilities may include, but are not limited to the following duties:

1. Ensure project coordination and be the primary point of contact with all parties on the construction project. Coordination will include work coordination among the City Project Manager, assigned project field inspector, City Staff, the public, contractor, other City Divisions/Departments & working Groups, third-party specialty inspectors, etc.

2. Coordinate with City internal divisions (ex. City Public Works for street paving and Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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painting requirements, City Traffic Engineer for review and approval of traffic plans).

3. Manage, coordinate, and complete permits and enforce permitting requirements from other City of Palo Alto Departments and external agencies. Review, quantify, and coordinate release of materials provided by the City from MSC/warehouse for the project.

4. Organize pictures taken per location and activity (tie- ins, conduit, electric vaults, and electric manhole installations, meter transfers, etc.) before submitting to City Project Manager.

5. Prepare the agenda and facilitate the preconstruction meeting, weekly progress meetings, and all other construction meetings required during the project.

6. Receive, and review Change Order Requests with City Project Engineer.

7. Receive and evaluate all requests for information. Route RFIs when applicable to design teams and respond or review responses to RFI. Transmit RFI responses to the contractor.

8. Provide assistance in collection of field data (This may include the use of GPS equipment for data acquisition) and submit documentation as requested.

9. Receive and review progress payments and process for payment.

10. Receive, review, and approve Contractor submittals and shop drawings. Transmit reviews to and from design teams and contractor, as needed.

11. Request and process soil compaction testing for backfill.

12. Track project progress and schedule using Microsoft Project.

13. Attend and provide project updates in City meetings.

14. Review and check Contractor-submitted construction GPS points.

15. Monitor all applicable utility rules, codes, and safety regulations are complied with and enforce compliance as needed.

16. Read and review daily inspection reports.

17. Direct field inspector as needed.

18. Perform intermittent field observations

19. Ensure all facilities are constructed in accordance with applicable plans, specifications, and CPAU Utility Standards.

20. Receive and respond to public comments and inquiries.

21. Manage complex public complaints and potential claims.

22. Perform or manage field investigations or field measurements of quantities and prepare field orders and contract modifications, as needed. Coordinate revisions with design team.

23. Prepare and review change orders with executive project manager.

24. Monitor performance of the work and prepares and issues notices of defective work and enforces compliance with the construction project documents. Reviews daily inspection reports and photos for non-conformance work.

25. Prepare punch lists and facilitates punch list walks and corrections.

26. Assist with the completion of documents.

27. Document work installed on the as-built/record drawings and submit documentation daily, weekly, monthly or as requested (This may include the use of GPS equipment for data acquisition using City-provided equipment).

28. Manage, coordinate, and complete permits required for the project.

Tasks specific to Electric/Fiber:

1. Manage and review the preparation of project procedures of proposed overhead and underground electric/fiber infrastructures, power poles, and electric substations.

2. Plan and schedule installation/maintenance/repair of overhead and underground electric/fiber infrastructure, power poles and electric substations.

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C. Documentation & Deliverables
The Construction Project Manager shall maintain project tracking documents, logs, and filing systems at all times. The contents of the diary shall consist of brief, accurate stateme nts of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City’s assigned City Project Manager and will become a part of the permanent project record. The Construction Project Manager shall keep track of submitted as-builts, photos, and sewer lateral reports submitted by the Inspector.

Once a month an electronic effort summary report (web -based or in MS Word or MS Excel format) shall be sent to the City Project Manager summarizing job highlights to the consultant’s work hours, the equipment inspected, and any infractions found.

III. ELECTRIC AND FIBER OPTIC SPECIAL SERVICES EMPLOYEE

A. Construction Management Overview and Description

The City may require that Consultant provide employees, including specialized contract employees, for projects requiring special experience or knowledge, who would be onboarded by the Consultant’s company if not a Consultant employee. Such onboarding by the Consultant shall occur within 10 business days from the date the City agrees to staffing a Consultant contract employee.

Consultant’s contract employee’s positions and tasks are not limited to field inspection, construction management, consultation services, estimation, design, labor work, training, etc.

The employee must be assigned to the appointed City project.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. ( AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on- call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for on -call, as-needed, time-limited project support services performed in accordance with the terms and conditions of this Agreement, and as set forth in a specific Task Order budget schedule. Compensation shall be cal culated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth in a specific Task Order.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed within a specific Task Order, provided that the total compensation for the Services, including any specified reimbursable expenses , and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Consultant’s Task Orders issued under this Agreement.

CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this /these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in the Task Orders issued to Consultant under this Agreement shall be at no cost to the CITY.

The consultant will be compensated for the actual hours worked on construction site as requested by each Project Manager/Engineer, within the Task Order budget estimate prepared by City. The work hours in the electronic effort summary report will be used as a basis for compensation; Any revisions to the Task Order budget will require a written amendment signed by authorized representatives of the Parties.

The City makes no guarantee as to the actual amount of services to be requested under any Task Order.

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Park Engineering, Inc. (Main Consultant)

Scope
Source of
Services(c)

Work Hours(d)
Employee Hourly
Rate(e)
Extended Rate(f)
Total(g)
Task I – On-call
Field Inspector for
Electric/Fiber

Main

Sub
Regular time $66.82-$81.21 $84.99 - $103.30 $151.81 - $184.5 Night Time $66.82-$81.21 $84.99 - $103.30 $151.81 - $184.5 Overtime $100.23 - $121.82 $127.50 - $154.96 $227.73 - $276.7 Double Time $133.64 - $162.42 $169.98 - $206.60 $303.62 - $369.0

Task II – On-call
Construction Project
Managers for
Electric/Fiber

Main

Sub
Regular time $87.37 - $113.07 $111.15 - $143.84 $198.52 - $256.91 Night Time - - -
Overtime - - -
Double Time - - -

Task III –
Electric/Fiber
Special Services
Employee

NA
Regular Time TBD (e) x 1.27 (e + f)
Night Time TBD (e) x 1.27 (e + f)
Overtime TBD (e) x 1.27 (e + f)
Double Time TBD (e) x 1.27 (e + f)

Total Two Million Dollars ($2,000,000.00) per year with a total contract amount not to exceed Six Million Dollars ($6,000,000.00) among all Consultants over the three-year term.

Maximum Annual Price Escalator:

Year 2: 3% Year 3: 3%

Notes:
(a) The number of hours for the various tasks cannot be estimated at this time for an on-call contract, they will be included in a Task Order budget prepared by City at the time services are requested.
(b) Rates for prevailing wage categories are subject to annual escalations in accordance with the bi -annual wage determinations from the California DIR.

Rates based on California DIR’s wage determinations dated September 2023 (Inspectors).
(c) [Omitted intentionally]
(d) Nighttime – Work begun after 5 PM or before 6 AM (1.125 x hourly rate).

Overtime – Work over 8 hours Monday – Friday or 1st 8 hours on Saturdays (1.5 x hourly rate).

Double Time – Work over 8 hours on Saturdays or all hours on Sundays and Holidays (2 x hourly rate).
(e) Hourly rates are inclusive of travel time and no travel time will be billed by staff for daily travel to the project site.

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(f) Rate including Contractor expenses (ex. benefits, vehicle, cell phone, laptops, PPE, tools, etc.) to be added to Employee hourly rates (g) Employee Hourly Rate + Extended Rate

Zoon Engineering, Inc. (Sub-Contractor)

Scope
Source of
Services(c)

Work Hours(d)
Employee Hourly
Rate(e)
Extended Rate(f)
Total(g)
Task I – On-call
Field Inspector for
Electric/Fiber

Main

Sub
Regular time $58.91- $80.77 $88.51 -$121.36 $147.42 – $202.13 Night Time - - -
Overtime - - -
Double Time - - -

Maximum Annual Price Escalator:

Year 2: 3% Year 3: 3% Year 4: 3% Year 5: 3%

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY

CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

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B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

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EXHIBIT E

DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS

This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT wi thout proof that CONSULTANT and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations , including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.

CITY provides notice to CONSULTANT of the requirements of California Labor Code S ection 1771.1(a), which reads:

“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”

This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR . Additional information regarding public works and prevailing wage requirements is available on the DIR w eb site (see e.g. http://www.dir.ca.gov) as amended from time to time.

CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation.

CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).

CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to:

Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project.

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The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively.

At the request of CITY, acting by its P roject Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY’s request.

CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.

If the certified payroll records are not provided as required within the 10 -day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.

Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s Project Manager within five (5) business days of any change of location of those payroll records.

Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one -half (1&1/2) times the basic rate of pay, as provided in Section 1815.

CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers’ compensation to its employees before beginning work (Labor Code 1861).

CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).

CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

EXHIBIT F
Claims for Public Contract Code Section 9204 Public Works Projects

The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement.

1. Claim Definition. “Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:

(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City.

2. Claim Process.

(A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived.

(B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events.

Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost.

Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.

(C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2.

(D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

(E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply.

3. Disputed Claims

(A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement.

(B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws.

(i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

(ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.

5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum.

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Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020

6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

7. Waiver of Provisions . A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

Docusign Envelope ID: 9CC403A4-D97A-48BE-BC72-DEF467835F9D Item 13
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with Park Eng; Contract
C251935904C

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: April 7, 2025
Report #:2503-4356
TITLE
Approval of Council Appointed Officers (CAO) Committee Recommendation to Approve and Authorize the CAO Committee Chair to Negotiate a New Professional Services Contract with Municipal Resources Group (MRG) for Council Appointed Officer Performance Evaluation Services and to Approve and Authorize City Manager or Designee to Execute Negotiated Contract in an Amount Not to Exceed $208,500 for a Period of up to 3 Years– CEQA Status: Not A Project

RECOMMENDATION

1. Approve the CAO Committee recommendation to approve and authorize the CAO chair negotiate a performance evaluation services contract with the existing consultant and facilitator, Municipal Resources Group (MRG) based on the MRG proposal (Attachment A) to provide services to facilitate the CAO performance evaluations process; and

2. Approve and Authorize the City Manager or their designee to execute a new professional services contract with MRG to provide facilitation services for the CAO performance evaluations process, for a term of up to 3 years and a total not-to-exceed up to $208,500.

BACKGROUND
The Council Appointed Officers (CAO) Committee is charged with the performance management process oversight of the four Council Appointed Officers positions. The Committee met on November 26, 20241 to review and debrief regarding the 2023-2024 CAO performance evaluation process, as well as to discuss the next steps for CAO performance evaluation services contract.

1 Council Appointed Officers Committee, 11/26/24,
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ANALYSIS
On November 26, the CAO Committee discussed the improvements implemented in the FY 2023-2024 CAO performance evaluation process and the effort Council accomplished with the current MRG consultant. Substantive changes to the performance evaluation process were implemented during last year’s process, including refining the Council questions of each CAO, and more thorough discussions with the CAOs.

There will be additional follow-up in the next evaluation process to incorporate performance indicators and to integrate the Council questions in alignment with the CAO self-evaluation prompts. The CAO Committee discussed the timeline and a suggestion for the Council interviews to be scheduled ahead of the Council break or completed no later than the Council break in order to have the CAO evaluation process completed in September.

The CAO Committee strongly supported continuing with a facilitator and unanimously recommended the following:
a) Chair Lauing discuss with the existing consultant if the current facilitator is available for the next cycle. If so, negotiate a Council Appointed Officers performance evaluation services contract with the existing consultant and facilitator. b) If not, return to the Council Appointed Officers Committee to discuss options including other facilitators with the existing consultant or other consultants.

Since the Committee meeting, it has been confirmed that the existing facilitator is available for the next performance evaluation process to be started in May 2025. Attached is the MRG proposal for performance evaluation services for the new term effective July 1, 2025. If Council approves the recommendation to approve the proposal, the new contract with MRG will be processed and scheduled on a Council agenda for approval this spring 2025.

FISCAL/RESOURCE IMPACT
The authorization requested is for the CAO performance evaluation professional services contract with fees for a total not to exceed of up to $208,500 over a three-year period, to be funded from the Council budget fund, subject to the annual appropriation of funds through the budget.

STAKEHOLDER ENGAGEMENT
This has been coordinated with the prior and current Committee Chairs, the professional services provider, and internal stakeholders. Public comment was made available during the Committee deliberations.

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ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because approval of the negotiation and execution of a professional services contract for facilitating CAO performance evaluations is a continuing administrative activity. CEQA Guidelines section 15378(b)(2).

ATTACHMENTS
Attachment A: Municipal Resources Group Proposal, CAO Evaluation APPROVED BY:

Sandra Blanch, Human Resources Director
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Elk Grove, California 95624 866-774-3222 www.Solutions-MRG.com January 13, 2025

Mayor Ed Lauing, Chair
Council Appointed Officers Committee
City of Palo Alto
250 Hamilton Ave
Palo Alto, CA 94301

Dear Vice Mayor Lauing,
Thank you for reaching out to Municipal Resource Group, LLC (“MRG”) to assist the City of Palo Alto (“City”). MRG is pleased to submit a proposal to facilitate the Council Appointed Officers (CAO) Annual Performance Evaluation and develop performance goals for the Appointed Officials for use in the 2025 evaluation process. One of the important tasks of elected officials is the annual review of the appointed officials, focusing on developing a formal, mutually agreeable, and value-driven process. The results of these evaluations are crucial to organizational success and achieving the Council’s vision and goals.

As you know, MRG has extensive experience with Council-appointed position evaluation processes. When conducting an evaluation, we seek to communicate the desires and expectations of the elected body in one voice. This requires we spend sufficient time understanding each member’s perspective of the appointed official’s performance to prepare an evaluation summary that concisely documents areas of consensus and divergent opinions.

The result is an evaluation that permits the Council and the appointee to know what is going well, areas for further development, and a road map to achieve the desired performance objectives. Our familiarity with City Appointed Officials and Councils will allow a deep dive into each year’s focus areas.

MRG regularly conducts chief-appointed official evaluations for cities, counties, special districts, and school districts. We have recently facilitated the evaluation process for many of your neighboring agencies, such as Redwood City, Pittsburg, Sunnyvale, Los Altos, San Leandro, Portola Valley, Roseville, San Luis Obispo, Santa Cruz, Santa Rosa, and the Fresno Unified School District. We will apply lessons learned to the Palo Alto process to ensure it is exceptional.

Respectfully submitted,

Mary Egan, CEO

MRG, LLC
916-261-7547
[email protected]

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City of Palo Alto
MRG, LLC Proposal for Evaluation Services 4

ABOUT MRG
The MRG team is a centralized resource for Council Appointed Officers Evaluations and Facilitations, Human Resources, Staff Development, and Organizational Excellence needs. We can assess and improve HR functions including, but not limited to, professional development, training, succession planning, workplace investigations, organizational assessments and implementation plans, employee relations, mentoring and coaching, project management, recruitment, and selection. MRG team members have led successful transformational efforts in our client agencies and fully understand their real-world challenges in making meaningful, long- term changes.

Firm Name: Municipal Resource Group, LLC (“MRG”)
Physical Address: 8788 Elk Grove Blvd., Suite L, Elk Grove, CA 95624 Mailing Address PO Box 561, Wilton, CA 95693
Website: www.Solutions-MRG.com

Facilitator: Dan Rich
E-Mail: [email protected]
Telephone Number: ( 650) 387-2074
MRG’s Consulting Philosophy
As a consulting firm, MRG brings talented consultants to assignments to meet clients’ needs.

MRG differentiates its work based on the following principles.

Trusted Advisors
MRG prides itself on building long-term relationships with clients who turn to it for guidance and expertise. We work as “trusted advisors,” working directly with organizational leadership to help them manage their complex
organizations and adjust to change that constantly knocks on the door.

Commitment to Public Service
We have also chosen to focus our work on local,
regional, and state agencies that deliver public
service to communities. We understand that our
clients' work is important and impactful, and
our goal is to help organizations do that work
with more grace, effectiveness, and efficiency.

Partnership for Impact
As seasoned executive leaders ourselves, we have no interest in writing reports that sit on shelves or are not reality-based for action. MRG needs to work in a consultative partnership directly with management for organizational impact to occur. We see our role as true partners Trusted Advisor
Commitment to Public Service
Partnership for Impact
Management Practitioners +
Leadership Coach
Strategic Organizational
Development
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MRG, LLC Proposal for Evaluation Services 5
with the leadership team to work productively to help you find solutions for actionable impact in your organization.

Team of Management Practitioners + Executive Leadership Coach Today’s organizations require a robust understanding of people and teams, plus talented management and leadership. The key to an organization’s success is the integration of control, which creates value (efficiency, effectiveness, empowerment), and leadership, which inspires change and a collective vision. By bringing a consultant team with management plus leadership coaching expertise, MRG can deliver tools, perspectives, and paradigms for the continued growth and support of an organization’s leadership team.

Strategic Organizational Development
Organizations are complex, multifaceted organisms that take time and strategy to develop and shape. While employees are focused on delivering services, the “care and feeding” of the organization, structure, and systems needs to be done to support the workforce, mold culture, and deliver services/mission. MRG brings deep organizational development and human resources experience to transform and help organizations continue to invest in their operations' strategic and hands-on development.

SCOPE OF WORK FOR PALO ALTO
MRG has an established approach to Performance Evaluation Processes. Based on standard practice, we then incorporate Palo Alto’s request to include additional elements or minimize the process to meet expedited timelines and needs. Flexibility is critical to providing Palo Alto with a mutually agreed-upon process.

A successful performance evaluation will recognize the accomplishments of the CAOs to show appreciation for their contributions to the City. The summary will identify areas where the CAOs are successful and areas for professional development. MRG will facilitate discussions between the Council and the CAOs with actionable items to enhance organizational leadership. Finally, our process allows the CAOs to provide a self-assessment to summarize their accomplishments and specify progress on established goals from their perspectives.

EVALUATION METHODOLOGY
• An introduction to our evaluation process includes a virtual Closed Session with the Mayor and Council to review the process, discuss options, highlight key dates, and communicate the expectations of the Council, CAOs, and MRG facilitator. During the introductory meeting, we address logistics related to the process. • Secure a comprehensive self-evaluation document from the CAO. MRG has an outline that provides a framework for preparing a self-assessment. • Customize the evaluation process to reflect the needs of the City Council. We work with the City Council to gain insight concerning high-level performance expectations and to customize the process, including finalizing the online survey, performance areas, and attributes.
• Optional: If requested, prepare, and collect salary data for the CAO from approximately Item 14
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City of Palo Alto
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six comparable jurisdictions. MRG will also engage in individual discussions with the Appointed Officials to uncover compensation interests. Subsequently, in memorandum format, MRG will relay this information to the Council and assist in facilitating agreement on any compensation adjustments.
• Optional: If requested, prepare a Direct Reports feedback report for the CAO that will solicit input from each member of the Senior Staff via an online survey tool, seeking information on the CAO's performance and obtaining insight on strengths and potential development opportunities.
• Gather insight and input, including goals, from each Council member. Interview each Council Member individually in a manner that offers flexibility in scheduling. Video conferencing provides an efficient, low-cost platform. MRG will interview the two outgoing Council Members.
• Council Members will make themselves available for an interview by the end of the second week in August.
• MRG will develop the comprehensive draft summary, including the perspectives of all members, integrated into common “themes” and goals that give consistent feedback and speak with one voice where possible. MRG will also prepare a compensation memo for the Council to consider compensation adjustments if requested. • Review and reach a consensus on the draft evaluation report and goals in a closed session with the City Council. In some cases, the City prefers to include the CAOs in these conversations to hear the council's deliberations. Other agencies prefer to have this deliberation with the facilitator and include the appointed official after the draft document has been finalized. This is one of the topics we will discuss at the pre- meeting.
• Finalize and deliver evaluation summary and address process issues, as necessary. Meet with the CAOs to assist them in developing an action plan to meet the Council-identified expectations.
• Debrief with the City Council and the CAOs as appropriate to identify the process's strengths and concerns. Identify methods for ongoing communication and make suggestions on a process for mid-year performance discussions with the appointed officials, as necessary.

The evaluation process typically takes 8-10 weeks to complete. This timeline is subject to the availability of the City Council for closed sessions, individual interviews, and the relevant documents by the City.

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MRG TEAM
Dan Rich (Lead Consultant) Dan Rich is a local government leader with more than thirty years of public sector experience, including fourteen years as a city manager. He is a big-picture strategic thinker and someone who pays attention to the small details and the political context of a situation.

Dan’s proven interpersonal, communication, negotiation, and facilitation skills have served him well in developing highly effective teams over the course of his career and he has been involved with career development efforts of younger professionals for almost two decades. He has a strong background in organizational development, strategic planning, and land use as well as extensive involvement in financial management, personnel, and policy analysis.

Prior Local Government Experience:
 City Manager, City of Mountain View
 City Manager, City of Campbell
 Assistant City Manager, City of Belmont
Consulting Services Provided:
 City of Palo Alto, Performance Evaluations (CM, CA, City Clerk)  City of Novato, Administrative Services Department, Executive Coaching Coaching / Leadership:
 City of Alameda, Executive Coaching
 City of Palo Alto, Executive Coaching
Training & Certifications:
 B.A., UC Berkeley
 MPP, Harvard University’s John F. Kennedy School of Government Julie Mares (Vice President of Operations, Principal) – Julie provides advice and coaching in the areas of human resources and organizational effectiveness. She is a seasoned career public sector manager with more than two decades of broad executive experience. Julie has experience working within a general-purpose local government, with special emphasis on human resources, strategic planning, City Council relations, leadership development, financial sustainability, and community engagement. Julie served as City Manager for the City of Milpitas, where she led a staff of 400 employees to serve a diverse population of 80,000. In her final position as San José Deputy City Manager, Julie was the Interim Human Resources Director. Julie is readily available to oversee the project team and meet project deadlines.

Mary Egan (Chief Executive Officer)—Mary is the MRG Chief Executive Officer. She collaborates with public and private organizations and their executive leadership to achieve their full potential. She has conducted hundreds of appointed official evaluations for public agencies.

She is a certified professional executive coach who uses these skills to help clients increase their performance and identify potential limiting blind spots.

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She also advises clients regarding employment-related risk mitigation, strategic planning, and interest-based problem resolution.

The entire team of MRG-affiliated consultants can be found at www.Solutions-MRG.com.

Should the need arise for subject matter expertise, we have a wide range of professional subject matter experts in addition to Human Resources experts.

COST:

We will complete the work we identify for a fixed fee of $12,000 per appointee evaluation and related goal-setting for in-person attendance at a closed session. MRG will invoice 50% of the contract at the project launch and the remaining 50% after the evaluation.

Costs per evaluation element:

City Manager Evaluation
City Attorney Evaluation
City Clerk Evaluation
City Auditor Evaluation
$12,000
$12,000
$12,000
$12,000
Direct Reports Feedback per Appointee $3,500 (if requested) Executive Salary Analysis per Appointee $2,500 (if requested) Additional work not contemplated in this proposal will be billed at $325 per hour and will begin only after agreed upon between the City and MRG.

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Visit us at:
www.Solutions-MRG.com
Serving CA and surrounding states from the Sacramento, Los Angeles, and Bay Areas. (866) 774-3222

Dan Rich
Affiliated Consultant

MUNICIPAL RESOURCE GROUP , LLC
Telephone: (650) 387-2074
[email protected]

Dan Rich is a local government leader with more than thirty years of public sector experience, including fourteen years as a city manager. He is a big picture strategic thinker and someone who pays attention to the small details and the political context of a situation.

Dan’s proven interpersonal, communication, negotiation and facilitation skills have served him well in developing highly effective teams over the course of his career and he has been involved with career development efforts of younger professionals for almost two decades. He is passionate about helping grow talent in the public sector.

He has a strong background in organizational development, strategic planning, and land use as well as extensive involvement in financial management, personnel, and policy analysis. Dan provided strategic direction for developing and gaining stakeholder support for three successful revenue measures.

Dan served as Mountain View’s City Manager from 2011 through 2019, when he retired. Mountain View is a full-service city with approximately 80,000 residents and 600 employees. It is home to numerous well- known companies including Google, Intuit, and Link edIn, as well as numerous startups. Dan worked on complex land use projects and partnerships as well as award-winning long-range planning documents. He was a leader on regional pension reform, transportation, and Next Gen employee development initiatives.

Dan also took pride in fostering effective Council relations and initiating employee wellness and engagement efforts. He served as chair of the Santa Clara County City Managers Association and was a member of the League of California Cities’ pension reform task force.

Prior to Mountain View, Dan spent six years as the City of Campbell’s City Manager, four years as Assistant City Manager in Belmont, and nine years in the Sunnyvale City Manager’s office. He also spent five years working for members of Congress.

Since retiring, in addition to consulting, Dan has been working part time at Stanford, teaching a public policy practicum, an introductory Land Use class and a Local Government class. He also volunteers with local non-profits.

Dan is a Bay Area native and received his BA from U.C. Berkeley in Economics and Political Science and has a Master in Public Policy from Harvard’s John F. Kennedy School of Government.

Rich’s Areas of Expertise:

Organizational Development
Coaching
Governance
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www.Solutions-MRG.com
Serving CA and surrounding states from the Sacramento, Los Angeles, and Bay Areas. (866) 774-3222

Julie Mares, Vice President of Operations
Affiliated Consultant

MUNICIPAL RESOURCE GROUP , LLC
Telephone: (408) 600-0000
[email protected]

Julie Mares is a seasoned, public -sector manager with more than two decades of broad executive experience in the areas of general management, organizational development, financial sustainability, parks & recreation, community services, affordable housing, performance measurement, and human resources. Julie has extensive experience working within local government, with special emphasis on strategic planning, city council relations, leadership development, and community engagement. Julie is a strategic thinker, capable of helping organizations adapt to fiscal and service challenges while focusing on interdepartmental coordination and community partnerships to enhance efficiency and effectiveness.

Before affiliating with MRG, Julie was the Chief Operating Officer for Management Partners where, in collaboration with the executive team, she directed all aspects of operational policies, objectives, and initiatives that enabled the consulting agency to be wel l- positioned to provide value-added services to all local government clients. She also served as the City Manager of Milpitas, where she led a staff of 400 to serve a diverse population. Key initiatives completed during her tenure included a successful ballot measure to increase the Transient Occupancy Tax, a collaborative update of community development fees supported by the development community, an interagency partnership to site the City's first 100% affordable housing project, and numerous administrative process improvements.

Additionally, Mares worked for nearly eleven years with the City of San José, the nation’s tenth largest city.

As the Deputy City Manager, she focused both on strategic partnerships with schools and businesses and on civic engagement and collaboration with community stakeholders to provide safe and healthy neighborhoods. One example included spearheading a partnership with the local high school district to deploy a free Wi-Fi network for underserved students. She also served as Director of Parks & Recreation.

In that role, she led the development of a new program creating a financially sustainable approach to operational delivery of parks and recreation that resulted in the adoption of a City Council policy, a new regional training program, and a twenty percent improvement in the departmental cost recovery rate.

Julie worked for the City of Tucson for nearly 12 years as Deputy Director of Budget and Research, Assistant to the City Manager, and Human Resources Administrator. As the Deputy Director leading the Research and Organizational Effectiveness Division, she collaborate d with internal clients, providing a variety of management consulting services to strengthen and enhance organizational performance and effectiveness. She also served as a manager with United Airlines for eleven years in several leadership roles for airport operations and customer service management.

Mares holds a BS in business management and a master’s in education. She is a graduate of the Southwest Leadership Program in Public Policy Management from the University of Arizona Eller College.

Julie’s Areas of Expertise:

Strategic Planning
Governance
Management Consulting
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Mary Egan – Chief Executive Officer
Affiliated Consultant

MUNICIPAL RESOURCE GROUP , LLC
Telephone: (916) 261-7547
[email protected]

Mary is the CEO and a founding partner of MRG, overseeing the entire practice and providing high -level leadership over every project. She is highly skilled at Executive Coaching, Workplace Investigation, and Conflict Resolution and often uses those skills, along with her considerable experience, when advising her clients regarding employment -related risk mitigation, strategic planning, and inte rest-based problem resolution. Mary’s specialties are facilitating performance evaluations and organizational analysis as well as coaching employers to address deficiencies and maximize their impact. She is a certified professional executive coach and uses these skills to help clients increase their level of performance and identify potential limiting blind spots. She also adv ises clients regarding investigations, employment-related risk mitigation, strategic planning, and interest-based problem resolution.

Mary is adept at the facilitation of staff retreats, team -based problem-solving, and labor management committees, works with elected boards to define the performance expectations of their key managers, and serves as a neutral factfinder in the resolution o f employer/employee issues.

As a Private Investigator and Qualified Manager licensed by the State of California, Mary has handled hundreds of workplace investigations for both private sector and public employers on all types of employment matters over the last several years, including claims of discrimination, harassment, retaliation, whistleblowing, substance abuse, threats of violence, assault, theft, fraud, violations of company policies, wage and hour violations, and other forms of alleged misconduct. Mary is experienced in testifying during administrative and judicial proceedings regarding completed investigations and provides expert testimony on the adequacy of workplace investigations, human resource practices, and public sector employment standards and expectations. She is also qualified as an expert in State Court on the adequacy of investigations. She is a founding member of the Association of Workplace Investigators (“AWI”) and spent four years developing the AWI’s published standards for workplace investigations and serving as a faculty member at the Workplace Investigation Institute.

Prior to MRG, Mary held key positions with both the City of Sacramento and the City of San Jose, where she was the Employee Relations Officer and Chief Negotiator. While with Shannon Associates, Mary managed recruitments for high-level appointed executives, as well as complex HR assessments for large and complex clients. She continued her consulting services with high-profile clients after starting her own firm in 2001 and maintains long -term relationships with cities and counties in California. Mary is a recognized expert in municipal government interest arbitration.

Mary’s Areas of Expertise:

Conflict Resolution
Executive Coaching
Performance Evaluations
Strategic Planning
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In addition to her significant field experience with major clients, Mary earned a Bachelor of Science degree in Applied Behavioral Sciences from the University of California, Davis, where she was named “Outstanding Female Graduate,” and a Master of Public Administration (MPA) degree from San Francisco State University. Mary is a founding member of the California Association of Workplace Investigators (CAOWI), participating as Chairperson of the Legislation Committee and member of the Best Practices Committee.

Mary is a Certified Professional with the Society for Human Resources Management (SHRM) and is a founding member of the Association of Workplace Investigators (AWI). She is a frequent presenter at conferences, seminars, and meetings of several professional organizations, including the League of California Cities, the International Public Management Association (IPMA), the California Public Employers Labor Relations Associa tion (CALPELRA), the Municipal Management Assistants of Northern California (MMANC), and the California State Association of Counties (CSAC). In 2018, Mary was recognized by the Sacramento Business Journal as a recipient of the Women Who Mean Business award.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: April 7, 2025
Report #:2503-4352
TITLE
SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning) to Modify the Housing Incentive Program, Affordable Housing Incentive Program, and Retail Preservation Ordinance (Housing Element Programs 3.3A, B, and D; 3.4A-D; and

6.2A). (FIRST READING: March 3, 2025, PASSED 6-0-1, Lythcott-Haims absent)

RECOMMENDATION
Staff recommends the City Council adopt on second reading the attached housing element implementation ordinance to modify the Housing Incentive Program, Affordable Housing Incentive Program, and Retail Preservation Ordinance.

EXECUTIVE SUMMARY
On March 3, 2025, the City Council adopted, on first reading, an ordinance amending the zoning code to implement programs in the City’s adopted Housing Element that modify the Housing Incentive Program, Affordable Housing Incentive Program, and Retail Preservation Ordinance.

The City Council’s motion and revisions in response to this motion are summarized below.

March 3, 2025 City Council Motion Revisions to Ordinance/Resolution

1. Modify the retail node to extend
along El Camino Real from Page Mill
Road to the southern City boundary,
and refer to the Planning &
Transportation Commission for
further discussion and
recommendation to City Council
Revised PAMC Chapter 18.40.180(c)(4)(E) Figure 5.

As shown in Attachment B, this map change
creates an "interim" node, extending from Page
Mill Road to the southern City boundary where the
Retail Preservation Ordinance will continue to
apply, until such time as the Planning and
Transportation Commission recommends and the
City Council determines refined node locations.

Future changes to the map may be made by
resolution or by administrative action of the
Planning Director.

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2. Exclude auto dealerships (AD
overlay) near El Camino Real and
Charleston Road from the HIP
Program
Revised Ch. 18.14.030(b), Housing Incentive
Program applicability section, to exempt sites on El
Camino Real subject to the auto dealership (AD)
combining district regulations in Chapter 18.30(F)
from eligibility from the HIP.

ATTACHMENTS
Attachment A: Amendments to Title 18 to Implement Housing Element Programs 3.3_3.4_6.2A Attachment B: Retail Nodes on El Camino Real Subject to Retail Preservation APPROVED BY:

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*NOT YET APPROVED*
1 0160170_KB2_20250306_AY16
Ordinance No.

Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Programs 3.3 and

3.4 of the 2023-2031 Housing Element to Revise the Housing Incentive Program and Affordable Housing Incentive Program

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. On May 8, 2023, the City Council adopted Resolution No. 10107, approving an Addendum to the Comprehensive Plan Environmental Impact Report (EIR), making various findings, and adopting the 2023-2031 Housing Element for the City of Palo Alto.

B. On December 18, 2023, the City Council approved a Revised Addendum to the Comprehensive Plan EIR and adopted Ordinance No. 5608, rezoning sites in the 2023-2031 Housing Element Sites Inventory to accommodate the City’s Regional Housing Needs Allocation.

C. On April 15, 2024, the City Council adopted Resolution No. 10155, making various findings, adopting a Revised 2023-2031 Housing Element, and authorizing the Director of Planning and Development Services to take further actions necessary to achieve certification of the Housing Element by the California Department of Housing and Community Development (HCD).

D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further modified on July 17, 2024, was substantially compliant with state law.

E. Programs 3.3 and 3.4 of the City’s Revised 2023-2031 Housing Element direct a variety of updates to the City’s Housing Incentive Program and Affordable Housing Incentive Program, which are implemented in this ordinance.

F. On December 17, 2024, the Planning and Transportation Commission considered and recommended that the City Council adopt this ordinance to implement the 2023-2031 Housing Element.

SECTION 2. Section 18.14.030 (Housing Incentive Program) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows:

18.14.030 Housing Incentive Program
(a) Purpose
The housing incentive program modifies base zoning district standards and streamlines review to encourage higher-density multi-family housing production. The program is a local alternative to State Density Bonus Law.

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(b) Applicability
The housing incentive program shall apply to the following zoning districts or locations:
(1) Chapter 18.13: RM-20, RM-30, RM-40
(2) Section 18.14.020: GM/ROLM Focus Area (see Figure 1) (3) Chapter 18.16: CC(2); CN or CS-zoned sites on El Camino Real, except sites in the Automobile Dealership (AD) Combining District; CS sites on San Antonio Road between Middlefield Road and East Charleston Road
(4) Chapter 18.18: CD(C)
(5) Chapter 18.29: NV- R3, NV- R4, NV- MXL, NV- MXM, NV- MXH, NV- PF (c) Procedures
The regulations established by this section provide increases in development standards for eligible projects electing to take advantage of the Housing Incentive Program. A property owner may elect to use the site consistent with the underlying zoning district.

The Housing Incentive Program provides flexibility in development standards that allow for a density increase that would in most cases exceed density bonuses under state density bonus law (Government Code Section 65915). Therefore, a project applicant may utilize the provisions of this section as an alternative to use of the state density bonus law implemented through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both this section and state density bonus law. If an applicant utilizes state density bonus law, the provisions of this section shall not apply.
(d) Permitted Uses
The following uses shall be permitted to use the housing incentive program:
(1) Multiple-Family Residential.
(2) In conjunction with a Multiple-Family Residential use, any uses permitted in the underlying district, provided the uses are limited to the ground floor. (e) Development Standards
For all eligible zoning districts, the housing incentive program shall modify underlying zoning district standards as shown in Table 5. Floor area ratio (FAR) and building height standards are specified in Table 6; unlike the standards in Table 5, these standards vary by zoning district and whether or not a site is classified as an opportunity site listed in Appendix D of the Housing Element.

Table 5
Housing Incentive Program Development Standards
Minimum Site Specifications
Standards for All Eligible
Zoning Districts Subject to regulations in:

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Minimum Setbacks
Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code or imposed to
create required effective
sidewalk widths apply.

Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)
Maximum Site Coverage 100% (commercial districts
and GM/ROLM Focus Area)
70% (residential districts)

Minimum Landscape/Open Space
Coverage
Same as underlying district See 18.14.020 for
modified standards
applicable to Housing
Element Opportunity Sites
Minimum Usable Open Space Same as underlying district
Maximum Height (ft) See Table 6 for standards,
by zoning district

Portions of a site within 50 ft of a
low density residential district (RE,
R1, NV-R1, R2, NV-R2, RMD)
35 ft(1)

Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)
Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:

Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees

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Maximum Residential
Density (net)
RM-20 Zone (Non-Housing
Element Opportunity Site):
40 du/ac
All Other RM Zones: 60
du/ac, except no density
limit if at least 10% of units
are 3+ bedrooms
All Other Zones: None.

Minimum Commercial FAR Same as underlying district See Section 18.40.180 (retail preservation)
Maximum Total FAR See Table 6 for standards,
by zoning district

Minimum Vehicle Parking
1 space per studio/1-bed

1.5 spaces per 2-bed+
Additional adjustments to
the required ratios may be
considered per Chapter

18.52 (Parking).

TDM Plan
Projects providing fewer
than 50% of the parking
spaces that would be
required under Section

18.52.040 shall develop and
implement a transportation
demand management plan
containing, at a minimum:
(1) free transit passes for
residents (one per/unit);
(2) at least one on-site
short-term residential
loading space;
(3) bike repair station;
(4) allocation of 5% of
required bike parking
spaces to cargo bikes;
(5) provision of outlets
appropriate spaced for e-
bike charging at 20% of
required bicycle parking
spaces; and

See Chapter 18.52.050(d)
for additional TDM that
may be required.

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(6) a micromobility program
with a fleet equal to 5% of
the number of proposed
units.

Notes:
(1) Distance shall be measured from the property line of the subject site.

Table 6
FAR and Building Height Standards, by Eligible Zoning District Housing Incentive Program Standards
Maximum FAR (1)
Maximum
Building Height
Non-Housing
Element
Opportunity Sites
Housing Element
Opportunity Sites

CC(2) 2.6

3.5 60 ft.

CS (El Camino Real) 2.85

3.5 60 ft.

CS (San Antonio
Road between
Middlefield Road
and East Charleston
Road)

2.0 2.0 50 ft.

CN (El Camino Real) 2.5

3.25 50 ft.

CD(C) 3.0 (2) 3.0 (2) 50 ft.

RM-40 3.0 50 ft.

RM-30 2.5 40 ft.

RM-20 2.0 40 ft.

GM/ROLM Focus 3.5 No change
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Area)
Notes:
(1) Maximum Floor Area Ratio shall be increased by 0.5:1 for projects in which at 10% of all units contain three or more bedrooms.
(2) The use of transferable development rights under Section 18.18.080 shall not cause the site to exceed an FAR of 3.0.

(f) Review Process
Housing Development Projects that comply with objective design standards pursuant to Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) shall be subject to streamlined review pursuant to Section 18.77.073. All other projects shall be subject to architectural review as provided in Section 18.76.020. Projects shall not be subject to the requirements of site and design review in Chapter 18.30(G).

SECTION 3. Section 18.14.040 (Affordable Housing Incentive Program) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows:

(a) Purpose
The affordable housing incentive program is intended to promote the development of 100% affordable rental housing projects by providing flexible development standards, modifying allowed uses, and streamlining the project review process. (b) Applicability
The affordable housing incentive program shall apply to 100% affordable housing projects in the following zoning districts or locations:
(1) Housing Element Opportunity Sites listed in Appendix D of the Housing Element; or (2) Properties located within one-half mile of a major transit stop or one-quarter mile of a high-quality transit corridor and zoned CD, CN, CS, and CC, set forth in Chapters 18.16 and 18.18 of this Title, in accord with Chapter 18.08 and Chapter 18.80, but excluding the Town and Country Village Shopping Center, Midtown Shopping Center, and Charleston Shopping Center (unless otherwise allowed by subsection (i). (3) Sites eligible for the Housing Incentive Program pursuant to Section 18.14.030(b).

The regulations established by this chapter shall apply for 100% affordable housing projects in lieu of the uses allowed and development standards and procedures applied in the underlying district. A property owner may elect to use the site consistent with the underlying zoning Item 15
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district.

The affordable housing incentive program provides flexibility in development standards that allow for a density increase that would in most cases exceed density bonuses under state density bonus law (Government Code Section 65915). Therefore, a project applicant may utilize the affordable housing incentive program and the provisions of this section as an alternative to use of the state density bonus law implemented through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both the affordable housing incentive program and state density bonuses law. If an applicant utilizes state density bonus law, the regulations in this section shall not apply.
(c) Definitions
For purposes of this chapter, the following definitions shall apply. (1) "100% affordable housing project" means a multiple-family housing project consisting entirely of for-rent affordable units, as defined in Section 16.65.020 of this code, except for a building manager's unit, and available only to households with income levels at or below 120% of the area median income for Santa Clara County, as defined in Chapter 16.65, and where the average monthly rent, inclusive of a reasonable utilities allowance, does not exceed one-twelfth of 30% of the area median income (100% AMI) for the appropriate household size.
(2) “Major transit stop” and “high-quality transit corridor” as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(d) Review Process
Housing Development Projects that comply with objective design standards pursuant to Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) shall be subject to streamlined review pursuant to Section 18.77.073 (Streamlined Housing Development Project Review). All other projects shall be subject to architectural review as provided in Section

18.76.020. Projects shall not be subject to the requirements of site and design review in Chapter 18.30(G).
(e) Conformance to Other Combining Districts and Retail Preservation The following requirements shall apply to projects in the AH affordable housing incentive program:
(1) Where applicable, the requirements of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations), Chapter 18.30(B) (Pedestrian Shopping (P) Combining District Regulations), and Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations), and Pedestrian Shopping (P) Combining Districts shall apply. (2) Where applicable, the retail preservation requirements of Section 18.40.180 shall apply.

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(3) Projects shall not be subject to the requirements of site and design review in Chapter

18.30(G).
(f) Permitted Uses
The following uses shall be permitted to use the AH affordable housing incentive program:
(1) 100% affordable housing projects;
(2) In conjunction with a 100% affordable housing project, provided the uses are limited to the ground floor:
(A) Business or trade school.
(B) Adult day care home.
(C) Office less than 5,000 square feet when deed-restricted for use by a not-for-profit organization.
(D) Any uses permitted in the underlying district
(g) Conditional Uses
All uses conditionally permitted in the applicable underlying zoning district may be established in a project utilizing the AH affordable housing incentive program: (1) in conjunction with an 100% affordable housing project; (2) subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals); and (3) provided that the uses are limited to the ground floor.
(h) Development Standards
The following development standards shall apply to projects subject to the AH affordable housing incentive program in lieu of the development standards for the underlying zoning district, except where noted below:

Table 1
Development Standards
AH Incentive Program(1)
Minimum Site Specifications Subject to regulations in:

Site Area (ft 2)
None required

Site Width (ft)
Site Depth (ft)

Minimum Setbacks
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code or imposed to
create required effective
sidewalk widths apply
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Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)

Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)

Build-to-Lines Same as underlying district
Permitted Setback Encroachments Same as underlying district Maximum Site CoverageNone Required
Minimum Landscape/Open Space
Coverage
20%(2)
Minimum Usable Open Space
25 sq ft per unit for 5 or
fewer units(2), 50 sq ft per
unit for 6
units or more (2)

Maximum Height (ft)
General Standard (Projects income
restricted <120% of AMI)
50'(4)
Lower Income Standard (Projects
income restricted <60% of AMI)
60’(3)(4)
Portions of a site within 50 ft of a
residential district (other than an
RM-40 or PC zone) R1, R-2, RMD,
RM-20, or RM-30 zoned property

35' (5)

18.08.030
Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)

Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:

Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees

Maximum Residential
Density (net)
None Required(3)
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Maximum Residential Floor
Area Ratio (FAR) - Residential
Portion of a Project

2.4:1(3)

Maximum Non-Residential
FAR

0.4:1
Maximum Total FAR 2.4:1(3)

Minimum Vehicle Parking
None, within one-half mile
of a major transit stop or
one-quarter mile of a high-
quality transit corridor.

0.5 per unit, all other
locations.

The Director may modify this
standard based on findings
from a parking study that
show fewer spaces are
needed for the project.

The required parking ratio
for special needs housing
units, as defined in Section
51312 of the Health and
Safety Code shall not exceed

0.3 spaces per unit.

Adjustments to the
required ratios shall be
considered per Chapter

18.52 (Parking).

For Commercial Uses, See
Chapters 18.52 and 18.54
(Parking).

TDM Plan
A transportation demand
management (TDM) plan
shall be required pursuant to
Section 18.52.050(d) and
associated administrative
guidelines

18.52.050(d)
Notes:
(1) These developments shall be designed and constructed in compliance with the objective design standards in Section 18.24 and meet the performance criteria, general standards, and exceptions outlined in Chapter 18.40. Developments that elect to deviate from one or more objective standards in Chapter 18.24 shall meet the context-based design criteria outlined in Section 18.13.060 for residential-only projects and projects in residential, public facilities, and office, research, and manufacturing zones, Section 18.16.090 for mixed use projects in the CN, CC, and CS districts, and Section 18.18.110 for mixed use projects in the CD district.
(2) Landscape coverage is the total area of the site covered with landscaping as defined in Chapter 18.04. For the purposes of this Chapter, areas provided for usable open space may be Item 15
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counted towards the landscape site coverage requirement. Landscape and open space areas may be located on or above the ground level, and may include balconies, terraces, and rooftop gardens.
(3) Except on R-1 opportunity sites (owned by faith-based institutions) where maximum FAR of 2.0; maximum residential density of 50 du/ac; and maximum building height of 50 feet apply, regardless of income level.
(4) Mixed-use projects that include ground-floor retail or retail-like uses shall receive an additional 5 feet of building height.
(5) Distance shall be measured from the property line of the subject site. The Planning Director may recommend a waiver from the transitional height standard.

SECTION 4. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 AND RM-40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):

18.13.040 Development Standards

(a) Site Specifications, Building Size and Bulk, and Residential Density The site development regulations in Table 2 shall apply in the multiple-family residence districts, provided that more restrictive regulations may be recommended by the Architectural Review Board and approved by the Director of Planning and Development Services, pursuant to the regulations set forth in Chapter 18.76, and the objective design standards set forth in Chapter 18.24. Except that s Sites designated as Housing Element Opportunity Sites shall meet the development standards specified in Chapter Section

18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and

18.14.040, respectively.

[. . .]

SECTION 5. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses)::

18.16.060 Development Standards

[. . .]

(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and Item 15
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residential developments. These developments shall be designed and constructed in compliance with the following requirements and the objective design standards in Chapter

18.24, except that sites designated as Housing Element Opportunity Sites shall meet the development standards as modified in Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. Non-Housing Development Projects and Housing Development Projects that elect to deviate from one or more objective standards in Chapter 18.24 shall meet the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020.

[. . .]

(c) Exclusively Residential Uses
Exclusively residential uses are generally prohibited in the CN, CS, CC(2) and CC zone districts, except on housing inventory sites identified in the Housing Element, subject to the standards in Section 18.16.060(b), and on CS and CN sites on El Camino Real and CC(2) sites, subject to the following.
(1) On CS and CN sites on El Camino Real and on CC(2) sites, where the retail shopping (R) combining district or the retail preservation provisions of Section 18.40.180 do not apply, exclusively residential uses are allowed subject to the standards in Section 18.16.060(b) and the following additional requirements:
(A) Residential units shall not be permitted on the ground-floor of development fronting on El Camino Real unless set back a minimum of 15 feet from the property line or the 12-foot effective sidewalk setback along the El Camino Real frontage, whichever is greater; for projects on Housing opportunity sites, or those utilizing the Housing Incentive Program or Affordable Housing Incentive Program, these setbacks may be modified by the standards in Chapter 18.14. Common areas, such as lobbies, stoops, community rooms, and work-out spaces with windows and architectural detail are permitted on the ground-floor El Camino Real frontage. (B) Parking shall be located behind buildings or below grade, or, if infeasible, screened by landscaping, low walls, or garage structures with architectural detail. (C) Combining district use regulations and design and development standards shall not apply to exclusively residential projects on Housing Element opportunity sites designated to accommodate lower income households, and may be limited for sites utilizing the Housing Incentive Program or Affordable Housing Incentive Program.

See Section 18.14.020 Chapter 18.14 for details.

[. . .]

(k) Housing Incentive Program Reserved
(1) The Director may waive the residential floor area ratio (FAR) limit and the maximum site coverage requirement for a project that is reviewed by the Architectural Review Board, Item 15
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if the Director finds that the project with such waiver or waivers is consistent with the required architectural review findings in Section 18.76.020. The Director may only waive these development standards in the following areas and subject to the following restrictions:
(A) For an exclusively residential or mixed-use project in the CC(2) zone or on CN or CS zoned sites on El Camino Real. In no event shall the Director approve a commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a total FAR (including both residential and commercial FAR) in excess of 2.0 in the CC(2) zone or 1.5 in the CN or CS zone.
(B) For an exclusively residential or mixed-use project on CS zoned sites on San Antonio Road between Middlefield Road and East Charleston Road. In no event shall the Director approve a commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a total FAR (including both residential and commercial FAR) in excess of 2.0.
(2) The Director may waive any development standard including parking for a project that is reviewed by the Architectural Review Board, if the Director finds that the project with such waiver or waivers is consistent with the required architectural review findings in Section 18.76.020. The Director may only waive these development standards in the following areas and subject to the following restrictions:
(A) For a 100% affordable housing project in the CC(2) zone or on CN or CS zoned sites on El Camino Real;
(B) For a 100% affordable housing project on CS zoned sites on San Antonio Road between Middlefield Road and East Charleston Road.
(C) In no event shall the Director approve development standards more permissive than the standards applicable to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A "100% affordable housing project" as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section 16.65.020, available only to households with income levels at or below 120% of the area median income, as defined in Section 16.65.020, and where the average household income does not exceed 60% of the area median income level, except for a building manager's unit. (3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter 18.15 (Residential Density Bonus).

[. . .]

SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):

18.18.060 Development Standards

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[. . .]

(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and residential developments. Housing Development Projects shall be designed and constructed in compliance with the following requirements and the objective design standards in Chapter

18.24, except that sites designated as Housing Element Opportunity Sites shall meet the development standards as modified in Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. Non- Housing Development Projects and Housing Development Projects that elect to deviate from one or more objective standards in Chapter 18.24 shall meet context-based design criteria outlines in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020:
[. . .]

(l) Reserved Housing Incentive Program
(1) For an exclusively residential or residential mixed-use project in the CD-C zone, the Director may waive the residential floor area ratio (FAR) limit after the project with the proposed waiver is reviewed by the Architectural Review Board, if the Director finds that the project exceeding the FAR standard is consistent with the required architectural review findings. In no event shall the Director approve a commercial FAR in excess of 1.0 or a total FAR (including both residential and commercial FAR) in excess of 3.0. Nor shall the use of transferable development rights under Section 18.18.080 be allowed to cause the site to exceed a FAR of 3.0.
(2) For a 100% affordable housing project in the CD-C zone, the Director may waive any development standard including parking after the project with the proposed waiver or waivers is reviewed by the Architectural Review Board, if the Director finds that a project with such waiver or waivers is consistent with the required architectural review findings.

In no event shall the Director approve a FAR in excess of 3.0 or approve other development standards more permissive than the standards applicable to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A "100% affordable housing project" as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section

16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Section 16.65.020, and where the average household income does not exceed 60% of the area median income level, except for a building manager's unit.
(3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter 18.15 (Residential Density Bonus).

[. . .]
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SECTION 7. Section 18.20.040 (Site Development Standards) of Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP and GM) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):

18.20.040 Site Development Standards

[. . .]

(b) Development Standards for Exclusively Residential Uses Residential uses shall be permitted in the MOR, RP, RP(5), ROLM, ROLM(E), and GM zoning districts, subject to the following criteria.

[. . .]

(6) ROLM District. All multi-family development in the ROLM zoning district shall be permitted subject to the provisions above in 18.20.040(b)(2), approval of a conditional use permit, and compliance with the development standards prescribed for the RM-30 zoning district, except for sites designated as Housing Element Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Program, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. (7) GM District. All residential development is prohibited in the GM zoning district, except for sites designated as Housing Element Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Program, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively.
(8) Combining Districts. Combining district use regulations and design and development standards shall not apply to exclusively residential projects on Housing Element opportunity sites designated to accommodate lower income households, and may be limited for sites utilizing the Housing Incentive Program or Affordable Housing Incentive Program. See Section 18.14.020 Chapter 18.14 for details.

(c) Development Standards for Mixed (Residential and Nonresidential) Uses in the MOR, ROLM, ROLM(E), RP, and RP(5) Zoning Districts
Mixed (residential and nonresidential) uses shall be permitted in the MOR, ROLM, ROLM(E), RP, and RP(5) zoning districts, subject to the following criteria:
(1) It is the intent of these provisions that a compatible transition be provided from lower density residential zones to higher density residential, non-residential, or mixed use zones.

The Village Residential development type should be evaluated for use in transition areas and will provide the greatest flexibility to provide a mix of residence types compatible with Item 15
Attachment A -
Amendments to Title 18
to Implement Housing
Element Programs

3.3_3.4_6.2A

Item 15: Staff Report
Pg.
17 Packet Pg. 532 of 660

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16 0160170_KB2_20250306_AY16
adjacent neighborhoods.
(2) New sensitive receptor land uses shall not be permitted within 300 feet of a Hazardous Materials Tier 2 or Tier 3 use. Existing sensitive receptors shall be permitted to remain, consistent with the provisions of Chapter 18.70 (Nonconforming Uses and Noncomplying Facilities).
(3) ROLM(E) District. Mixed (residential and nonresidential) development in the ROLM(E) zoning district shall be permitted, subject to the provisions above in 18.20.040(c)(2), approval of a conditional use permit, determination that the nonresidential use is allowable in the district and that the residential component of the development complies with the development standards prescribed for the RM-20 zoning district. The maximum floor area ratio (FAR) for mixed use development is 0.3 to 1.
(4) ROLM District. Mixed (residential and nonresidential) development in the ROLM zoning district shall be permitted, subject to the provisions above in 18.20.040(c)(2), approval of a conditional use permit, determination that the nonresidential use is allowable in the district and that the residential component of the development complies with the development standards prescribed for the RM-30 zoning district. The maximum floor area ratio (FAR) for mixed use development is 0.4 to 1. Except that s Sites designated as Housing Element Opportunity Sites or Focus Areas shall meet the development standards specified in Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections

18.14.030 and 18.14.040, respectively.
(5) GM District. Mixed use (residential and nonresidential) development is prohibited in the GM zoning district, except for sites designated as Housing Element Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Program, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively.

In computing residential densities for mixed (residential and nonresidential) uses, the density calculation for the residential use shall be based on the entire site, including the nonresidential portion of the site.

[. . .]

SECTION 8. Chapter 18.32 (Affordable Housing Incentive Program) of Title 18 (Zoning) of the Palo Alto Municipal Code is deleted in its entirety.

SECTION 9. Section 18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):

18.40.180 Retail Preservation
[. . .]

Item 15
Attachment A -
Amendments to Title 18
to Implement Housing
Element Programs

3.3_3.4_6.2A

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(c) Waivers and Adjustments; and Exemptions.

[. . .]

(4) Exemptions. The following uses shall be exempt or partially exempt from the provisions of this Section 18.40.180, as provided below:
(A) A 100% affordable housing project not within the Ground Floor (GF) and/or Retail (R) combining districts nor El Camino Real Node area as depicted in Figure 5on a site abutting El Camino Real. A "100% affordable housing project" as used herein shall have the same meaning as provided in Section 18.14.040(c).means a multiple- family housing project consisting entirely of affordable units, as defined in Section

16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager's unit.
(B) A 100% affordable housing project on a site abutting El Camino Real in the CN and CS zone districts outside the Retail (R) combining district. A "100% affordable housing project" as used herein shall have the same meaning as provided in Section 18.14.040(c).means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, and where the average household income does not exceed 80% of the area median income level, except for a building manager's unit. (C) A residential project located on a Housing Element Opportunity Site listed in Appendix D of the Housing Element, except for projects located within an El Camino Real Node area, as depicted in Figure 5, that utilize the Housing Incentive Program to exceed the realistic capacity estimates identified in Appendix D of the Housing Element.
(CD) A high-density residential or mixed-use project in the CS zone district, but not within the Ground Floor (GF) or Retail (R) combining districts, shall be required to replace only up to 1,500 square feet of an existing retail or retail-like use and shall be exempt from minimum vehicle parking requirements pursuant to Chapter 18.52 (Table 1) for this retail or retail-like floor area. For the purposes of this partial exemption, high-density shall mean 30 or more dwelling units per acre. This reduction in retail square footage and minimum vehicle parking requirements shall not apply for a site within the Ground Floor (GF) or Retail (R) combining districts, or within an El Camino Real Retail Node area, unless the site is a Housing Element opportunity site, as depicted in Figure 5
(E) The El Camino Real Node map in Figure 5 may be updated by resolution of the City Council or by administrative regulation issued by the Director of Planning and Development Services.

Figure 5: El Camino Real Retail Node Areas

Item 15
Attachment A -
Amendments to Title 18
to Implement Housing
Element Programs

3.3_3.4_6.2A

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18 0160170_KB2_20250306_AY16

SECTION 10. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 11. In accordance with the California Environmental Quality Act (CEQA), the City prepared an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR), analyzing the potential environmental impacts of the 2023-2031 Housing Element. On May 8, 2023, the City Council adopted Resolution No. 10107, and on December 18, 2023, the City Council approved a Revised Addendum, finding that the Addendum, as revised, and the 2017 EIR adequately analyzed the environmental impacts of the Housing Element, including the Programs implemented by this ordinance.

//

//

//

//
Item 15
Attachment A -
Amendments to Title 18
to Implement Housing
Element Programs

3.3_3.4_6.2A

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SECTION 12. This Ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

Assistant City Attorney City Manager

Director of Planning and
Development Services
Item 15
Attachment A -
Amendments to Title 18
to Implement Housing
Element Programs

3.3_3.4_6.2A

Item 15: Staff Report
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X
X
X
X
Focus Area Node
North Ventura CAP
Interim Nodes
California Node
Triangle Node
Stanford
University
Mountain View
Los Altos
Yale Street
Jacaranda Lane
Sherman
Avenue
El Camino Real
Orme Street
Bryant Street
Ramos Way
(Private)
Hanover Street
Columbia Street
Deodar Street
Redwood Circle
M
argarita Avenue
Hansen Way
Lambert Avenue
Paradise W
ay
Fernando Avenue
Olive Avenue
Cam
bridge
Avenue
Ventura Avenue
Grant
Avenue
M
atadero Avenue
M
aybell Avenue
Curtner Avenue
Oregon Avenue
W
ilton
Avenue
Barron Avenue
High Street
RickeysWay(Private)
W
hitclem Drive
Cowper Street
Bowdoin Street
La Donna Street
Whitsell Street
Glenbrook Drive
Alma Street
McGregorWay
Lane 66
Laguna Avenue
Stanford Avenue
La Jennifer
W
ay
Amaranta Avenue
Terman Drive
Gary
Court
Arastradero Road
Wright
Place
Ramona Street
Miller Avenue
El Centro
Street
La Calle
Lom
a Verde Avenue
Mackay
Drive
Creekside Drive
Suzanne Drive
M
onroe Drive
Pena
Court
El Cerrito
Road
Duluth
Circle
South Court
Irven
Court
El Capitan
Place
Silva Avenue
Rincon
Circle
Waverley Street
Nelson
Court
Encina
Grande
Drive
Tim
lott
Lane
Ynigo
Way
Laguna
Oaks
Place
Florales Drive
Vista
Avenue
Saint
Claire
Drive
Ely Place
Dartmouth
Street
Los
Palos
Place
Adobe
Place
Scripps
Avenue
Wellesley
Street
Amherst
W
ay
Park Boulevard
Cesano
Court
Nelson Drive
Josina Avenue
Cypress Lane (Private)
Kelly W
ay
McKellarLane
Charleston Road
CarlsonCourt
Campana Drive
Arbol
Drive
MumfordPlace
Solana
Drive
Santa Rita Avenue
W
ashington
Avenue North California Avenue
Nevada
Avenue El Dorado Avenue
Wilkie Way
Georgia Avenue
Carolina Lane
Seale Avenue
Acacia
Avenue
Cass
Way
Ash Street
Colorado Avenue
Lundy
Lane
El Verano Avenue
Cam
pesino Avenue
College
Avenue
Drake
W
ay
Los Robles Avenue
W
est Charleston Road
California Avenue
East M
eadow Drive
Magnolia Drive
Alger Drive
Oberlin
Street
La Selva Drive
Dixon
Place
Thain
W
ay
Page M
ill Road
Cornell Street
Princeton Street
Harvard Street
Williams Street
Kipling Street
Verdosa Drive
El Carm
elo Avenue
Scripps
Court
Pomona Avenue
Orinda
Street
Shauna
Lane
Emerson Street
Los PalosAvenue
Birch
Street
Maybell
Way
La Mata
Way
Staunton
Court
Tennessee Lane
Duncan Place
Cherry
Oaks
Place
Amherst Street
Chestnut
Avenue
Sheridan
Avenue
El Camino Way
Tioga
Court
Lindero
Drive
Shasta
Drive
Diablo
Court
Cerrito
W
ay
Ferne Avenue
Greenmeadow
W
ay
Carlson
Circle
M
aureen
Avenue
Starr King
Circle
Dinah's
Court
Ilim
a
Court
Cowper
Court
Juniper Lane(Private)
King
Arthur's
Court
Oregon Expressway
Baker
Avenue
Silva
Court
Oxford Avenue
M
arion
Avenue
Abel
Avenue
San Jude
Avenue
Edlee Avenue
M
iller
Court
Rinconada Avenue
Pepper
Avenue
Clemo Avenue
James
Road
Coulombe
Drive
Manzana Lane
Rambow Drive
Parkside Drive
Fairm
ede
Avenue
Ilim
a W
ay
RuthelmaAvenue
Kendall
Avenue
Chimalus Drive
Laguna Way
Hubbartt Drive
Donald Drive
Paul Avenue
Cereza Drive
Roosevelt Circle
La Para Avenue
Roble Ridge (Private)
Willmar Drive
Ben
Lom
ond
Drive
PC-4637
PF
RM-30
CS CS
R-1
R-1 (10000)
CS (H)
RM-40
PF
RE
PC-2930
RM-15
PC-3023
CS
RM-30
CC
(2)(R)
R-2
RM-30
RM-30RM-15
R-2
NV-R4
RM-30
GM
R-2
PF
RM-15
NV-MXH
NV-R3
RE
PF (AS3)
CN
RP (L)
CN
CS (AS1)
RP (L)
R-2
CS
RP (AS2)
RMD
CC
(2)(R)(P)
R-2
R-2
R-2
RM-30
RM-30
RM-30
CC (2)(R)
CC (2)(R)
CC (2)(R)
PF (R)
PF (R)
PF
(R)
PC-4127
RM-30
R-1
PF
RM-15 R-2
RM-15
RM-15
RM-30
PF
PF
R-1 (10000)
R-2
RM-15
PC-4268
PC-2224
PC-3028
PC-4354
PC-2293
CC
RM-15
NV-MXL
NV-R2
CSPC-4463
PF
RM-40
R-1
RM-15
RM-30
CN
R-1 (S)
R-2
R-1
PF
RM-15
RM-30
PF
PF
PC-2666
PC-2666
RM-30
RM-40
R-1 (10000)
R-1
R-2
R-1
CN
RM-15
CC
(2)
CC (2)
PF
PF
PF
PFPF
PF

RMD (NP)
R-1
PF
RP
PF PF
R-2
RM-15
CS (H)
RM-30
PC-4190
PC-3041
PF
RM-30
R-1
RM-30
PC-2218
PC-2656
RM-15
PC-5116
RM-30 RM-15
PC-3133
PC-4511
RM-15
RM-30
R-1 (7000)
PF
RM-30
RM-40
R-1 (S)
CS (L)
PC-4448
CS
CS (L)
RM-40
RM-15
RM-30
PC-5034
R-1
CC (2)(P)
NV-MXM
CS
CS

CS (AD)
PC-4831
PC-4956
PC-2236
R-1 (7000)
R-1 (8000)
R-1
(8000)

CN (GF/P)
PF
PF (D)
R-2
R-1 (10000)
R-1 (8000)
R-1 (7000)(S)
R-1
R-1 (8000)(S)
R-1 (8000) RM-15
RM-15
PC-3036
CS
CS
CS
CS (H)
RM-15
PF
RM-15
CN RM-30
PF
CN
PC-5069
RM-15

CS (L)(D)
PTODRM-40
RM-40
CC
(2)(R)
CC (2)(R)
CC (2)
CC (2)
CC
(2)
PF
R-1
PC-4753
NV-R1
NV-MXM
CS
NV-MXH
GM
NV-MXL
NV-PF
This map is a product of
City of Palo Alto GIS
[
0 480 960240
Feet
South El Camino Real
South El Camino Real Retail Nodes
Interim Nodes
Housing Element Sites
City Limit
Zone Districts
X Transportation Stations
Item 15
Attachment B - Retail Nodes on El
Camino Real Subject to Retail
Preservation

Item 15: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: April 7, 2025
Report #:2503-4405
TITLE
SECOND READING: Ordinance Amending Various Chapters of Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Clarify Existing Regulations and to Implement Recent State Housing Laws (FIRST READING: March 17, 2025; PASSED 7-0)

BACKGROUND
The City Council heard this item on March 17, 2025 for a reintroduced first reading and approved it on a 7-0 vote. No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance Amending Various Chapters of Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Clarify Existing Regulations and to Implement Recent State Housing Laws
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 16
Item 16 Staff Report

Item 16: Staff Report
Pg.
1 Packet Pg. 538 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
2 Packet Pg. 539 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
3 Packet Pg. 540 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
4 Packet Pg. 541 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
5 Packet Pg. 542 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
6 Packet Pg. 543 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
7 Packet Pg. 544 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
8 Packet Pg. 545 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
9 Packet Pg. 546 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
10 Packet Pg. 547 of 660

Item 16
Attachment A - Ordinance
Amending Various
Chapters of Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code
to Clarify Existing
Regulations and to
Implement Recent State
Housing Laws

Item 16: Staff Report
Pg.
11 Packet Pg. 548 of 660

City Council
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: April 7, 2025
Report #:2503-4448
TITLE
Potential Support or Sponsorship of a Senate Bill 457 (Becker) Regarding Housing Accountability Act Reforms (Item Continued from March 24, 2025 City Council Meeting) This item is a continuation of Agenda Item # AA1 on the City Council March 24, 2025 agenda. The original report and materials may be found here and are also attached to this report:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16855

RECOMMENDATION
Staff recommends the City Council discuss and provide direction to:

A. Approve a Support or Sponsorship position on SB 457; and B. Designate a City Council representative to provide testimony in support of the Bill or authorize the City Manager or their designee to serve this role.

FURTHER INFORMATION
The bill has been officially released online and can be found here:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB457 This is an update to Attachment D.

ATTACHMENTS
Attachment A: March 24 Item AA1 Staff Report
Attachment B: March 24 Memo from Townsend Public Affairs Regarding SB 457 Attachment C: March 24 Item AA1 Supplemental Report
Attachment D: March 24 Supplemental Attachment A - SB 457 Amendments APPROVED BY:

Ed Shikada, City Manager
Item 17
Item 17 Staff Report

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7 3
9 1
City Council
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 24, 2025
Report #:2503-4404
TITLE
Potential Support or Sponsorship of a Senate Bill 457 (Becker) Regarding Housing Accountability Act Reforms

RECOMMENDATION
Staff recommends the City Council discuss and provide direction to:

A. Approve a Support or Sponsorship position on SB 457; and B. Designate a City Council representative to provide testimony in support of the Bill or authorize the City Manager or their designee to serve this role.

ANALYSIS
Background and analysis on the proposed legislation are provided on the attached memorandum (Attachment A) from the City’s legislative advocate, Townsand Public Affairs.

FISCAL/RESOURCE IMPACT
The recommended action has no direct fiscal impact.

STAKEHOLDER ENGAGEMENT
Staff has consulted with State Senator Becker’s office on this matter.

ENVIRONMENTAL REVIEW
Not a project.

ATTACHMENTS
Attachment A: Memo from Townsend Public Affairs Regarding SB 457 APPROVED BY:

Ed Shikada, City Manager
Item 17
Attachment A - March 24
Item AA1 Staff Report

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M E M O R A N D U M

To: City of Palo Alto
Honorable Mayor Lauing, Vice Mayor Veenker, Members of the City Council Ed Shikada, City Manager
Molly Stump, City Attorney

From: Townsend Public Affairs
Niccolo De Luca, Vice President
` Carlin Shelby, Senior Associate

Date: March 19, 2025

Subject: SB 457 (Becker) – Housing Accountability Act Reforms

The purpose of this memo is to provide an overview of recent changes to state law governing the timing, approval, and processing of ‘Builder’s Remedy” applications provided within the Housing Accountability Act (HAA), and a legislative proposal from Senator Becker designed to close certain loopholes.

BACKGROUND
During the 2024 Legislative Session, the Legislature passed several bills modifying the Housing Accountability Act (HAA), particularly regarding the Builder’s Remedy provision. The HAA, first enacted in 1982, aims to prevent local jurisdictions from arbitrarily denying or unduly rest ricting housing development projects that contribute to meeting their housing needs. The law limits a city's ability to disapprove or reduce density in residential projects while still allowing the enforcement of objective standards and developer fees.

A key focus of recent legislative reforms has been the Builder’s Remedy, which prohibits local governments from denying housing developments that include at least 20% lower -income housing, even if they do not conform to local zoning—provided the jurisdiction lacks a compliant Housing Element. Recent legal interpretations and implementation have highlighted loopholes and inconsistencies, prompting legislative action.

Key Legislative Action in 2024:
• AB 1886 (Alvarez, 2024) clarified that a Housing Element is only compliant after both:

1. The local jurisdiction adopts it; and

2. The California Department of Housing and Community Development (HCD) certifies it as compliant.
• This measure was intended to address “self-certification,” preventing cities from arguing that a Housing Element could be compliant without first receiving HCD approval. • However, this change could create discrepancies among cities based on the timeline for HCD review. It also extended the window for Builder’s Remedy applications to be Item 17
Attachment B - March 24
Attachment A - Memo
from Townsend Public
Affairs Regarding SB 457

Item 17: Staff Report
Pg.
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submitted until HCD review was complete, even if a Housing Element was substantively unchanged from the date of agency adoption.

In Palo Alto, the City Council adopted its revised Housing Element on April 15, 2024 and the final staff changes to the Housing Element were submitted to HCD on July 26, 2024. HCD completed its review and certified the Housing Element on August 20, 2024. In the time between Council adoption and HCD certification, the City received two SB -330 Preliminary Applications for Builder’s Remedy projects (680 University Avenue and 2300 Geng Road). In addition, the City received a number of formal applications for Builder’s Remedy projects (762 San Antonio Road, 3606 El Camino Real, 3781 El Camino Real, 3400 El Camino Real) and deemed two formal applications complete (762 San Antonio Road and 156 California Avenue).

As these projects exceed the density of development anticipated in the City’s Comprehensive Plan, some projects may not be adequately served by critical infrastructure such as the water utility supply needed for firefighting as well as domestic needs, sewer capacity to prevent backups or the necessity of major upgrades to mainline and treatment capacity, and storm drain capacity.

Financing these infrastructure improvements can be particularly complex when existing systems are already strained, as not all costs can be attributed t o a single developer. Local jurisdictions rely on long-term capital improvement plans and bond measures to fund upgrades in a strategic and fiscally responsible manner. However, Builder’s Remedy projects, which exceed growth projections, can necessitate immediate and costly infrastructure investments, disrupting this careful planning. Assigning a fair share cost to developers is challenging when upgrades – such as increased water supply, sewer capacity, or storm drainage – require large-scale improvements ahead of schedule.

In Palo Alto, several Builder’s Remedy projects will require both on-site and off-site improvements to increase fire flow capacity. One project alone demands a 3,000-gallon-per-minute increase, far exceeding current fire flow capacity. These unexpected infrastructure demands – whether for water supply, fire safety, sewer, or stormwater management – undermine well-planned municipal land use and financing strategies, placing an undue burden on local governments and taxpayers.

BILL PROPOSAL
In discussions with the office of Senator Becker, the City has worked to craft bill language to refine the Builder’s Remedy framework and restore a more balanced approach that aligns compliance timelines with the procedural realities of local government adoption and state certification.

SB 457 (Becker) proposes that a jurisdiction’s Housing Element be considered compliant upon local adoption, provided that HCD ultimately certifies the adopted element as compliant. By making this distinction, SB 457 aims to eliminate the current window of uncertainty wherein developers can exploit the delay between adoption and HCD approval by submitting applications under the Builder’s Remedy provision.

The bill further clarifies that Builder’s Remedy protections apply only to projects with a completed formal application submitted before the jurisdiction adopts a Housing Element that is later deemed compliant by HCD or a court. This measure seeks to prevent instances where developers file preliminary applications with minimal substantive detail solely to establish eligibility for the Builder’s Remedy, even after the jurisdiction has completed the necessary analyses, policies, and programs required by state law. By ensuring that Builder’s Remedy protections are only available Item 17
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when a jurisdiction is genuinely out of compliance, the legislation reinforces the original intent of the remedy while preventing misuse that circumvents legitimate land use planning processes.

The measure also ensures equitable treatment of local agencies by preventing jurisdictions from being subject to Builder’s Remedy protections due to delays in HCD’s administrative review process. Under current law, jurisdictions remain exposed to Builder’s Remedy applications even after adopting a Housing Element that is later deemed compliant, simply because HCD has not yet completed its review. This bill eliminates this potential for inequity by recognizing a jurisdiction’s good-faith adoption of a Housing Element as the operative date for compliance, contingent upon subsequent HCD approval.

Additionally, SB 457 proposes to limit the extraordinary benefits of the Builder’s Remedy to developers who hav e demonstrated a serious intent to construct much- needed housing.

Currently, a developer may establish eligibility for the Builder’s Remedy simply filing a preliminary application with minimal detail. A preliminary application secures development rights even if the project changes, so long as density or floor area do not change by more than 20%. While this flexibility is not normally problematic, in combination with the Builder’s Remedy, which allows a developer to bypass all zoning and general plan regulations, it means the project described in a preliminary application has very little meaning. . The bill instead requires that a developer must submit a complete formal application to utilize the Builder’s Remedy. This ensures that only serious developers with real housing plans can proceed with a project that disregards local policies. It also means that other developers will be required to comply with local policies and programs that are ultimately found to satisfy the state’s high standards for promoting both fair housing and housing production goals.

The proposed legislation will significantly improve clarity on the applicability of the Builder’s Remedy in future RHNA cycles. The applicability of its provisions to applications already filed with the City of Palo Alto and other local jurisdictions will need to be reviewed on a case-by-case basis, including any phase-in provisions provided through the legislation.

LOOKING FORWARD
SB 457 will be amended to reflect the updated language during the week of March 24 and is scheduled for its first policy hearing in the Senate Housing Committee on April 1, 2025, at 3:00 PM. The measure has been double- referred and will also be considered by the Senate Local Government Committee. Stakeholder engagement efforts are ongoing, with continued discussions involving local jurisdictions, housing advocates, and the development community to refine the bill’s provisions and ensure clarity in its implementation.

The City of Palo Alto and its advocates remain engaged in monitoring the legislative process and advocating for refinements that ensure a fair and balanced application of the Builder’s Remedy.

The intent of this measure is not to weaken existing housing laws but to provide a rational and predictable framework that aligns compliance determinations with actual adoption dates, thus eliminating opportunities for speculative development while maintaining strong incentives for timely Housing Element adoption.

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As the bill progresses through the legislative process, Townsend Public Affairs will continue to provide updates on any amendments and strategic opportunities for the City to participate in shaping the final language of SB 457.

ACTION
Given the City’s active engagement with Senator Becker’s office in developing the legislative language for SB 457, it is recommended that the City take a formal and sponsorship position (which, in turn, indicates a “support” position). By doing so, the City would serve as the lead stakeholder in advancing the measure and advocating for its passage. If the City Council agrees to this course of action, the City will co- champion the bill alongside Senator Becker. This effort would necessitate a representative from the City providing testimony on the technical merits of the legislation, as well as its potential impacts on local land use planning and housing policy.

Given that this proposal originated from the City, it is common practice that Palo Alto serve as the bill “sponsor” which indicates to other members and stakeholders who the primary driver(s) of the measure are. Should the city only elect to “support” the bill, the measure would lack a sponsor, which would run contrary to the origination of the measure, which, in this case, is not a member sponsored bill.

The requested City Council actions therefore include:

A. Approve a Sponsorship position on SB 457; and

B. Designate a City Council representative to provide testimony in support of the Bill or authorize the City Manager or their designee to serve this role.

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Item No. AA1. Page 1 of 1
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City Council
Supplemental Report
From: Ed Shikada, City Manager
Meeting Date: March 24, 2025
Item Number: AA1
Report #:

TITLE
Potential Support or Sponsorship of a Senate Bill 457 (Becker) Regarding Housing Accountability Act Reforms

ANALYSIS
Our office has received the attached working markup of Senate Bill 457 (Becker), indicating amendments planned to the bill.

ATTACHMENTS
Supplemental Attachment A: SB 457 Amendments
APPROVED BY:

Ed Shikada, City Manager
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AMENDMENTS TO SENATE BILL NO. 457

Amendment 1
In the title, in line 1, strike out “Section 65400” and insert:

Sections 65585.03 and 65589.5

Amendment 2
On page 2, before line 1, insert:

SECTION 1. Section 65585.03 of the Government Code is amended to read:
65585.03. A housing element or amendment shall be considered to be in substantial compliance with this article on the date when the governing body of a local agency adopts the housing element or amendment for the current planning period in accordance with Section 65585 and 65585, provided that either of the following apply:
occurs after the date the housing element or amendment is adopted and without further action by the governing body:
(a) The department finds that the adopted housing element or amendment is in substantial compliance with this article and the department’s compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction.
(b) A court of competent jurisdiction determines that the adopted housing element or amendment substantially complies with this article and the court’s decision has not been overturned or superseded by a subsequent court decision or by statute.

SEC. 2. Section 65589.5 of the Government Code is amended to read:
65589.5. (a) (1) The Legislature finds and declares all of the following:
(A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (B) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2) In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following:
(A) California has a housing supply and affordability crisis of historic proportions.

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California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives.
(B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor. (C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E) California’s overall home ownership rate is at its lowest level since the 1940s.

The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of California’s households are able to afford the cost of housing in their local regions.
(F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians.
(G) The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent. (H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (I) An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. California’s cumulative housing shortfall therefore has not only national but international environmental consequences. (J) California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K) The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.
(L) It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.
(3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently. 03/19/25 06:40 PM
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(4) It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments.
(b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d).
(c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state.

Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d) For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1) The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.
(2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed 03/19/25 06:40 PM
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complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A) Inconsistency with the zoning ordinance or general plan land use designation. (B) The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
(3) The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A) This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(C) (i) Notwithstanding subdivision (h), for purposes of this paragraph, “deemed complete” means the applicant has submitted a complete application pursuant to Section 65943.
(ii) This subparagraph applies to an application that, as of January 1, 2026, has not met both of the following criteria:
(I) Received a local agency approval.
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(II) Incurred substantial liability in good faith reliance upon the local agency approval.
(6) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builder’s remedy project.
(e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f) (1) Except as provided in paragraphs (6) and (8) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a project’s eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915. (2) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdiction’s need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583.

However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project.
(3) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter. (4) For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.
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not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
(6) Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builder’s remedy project:
(A) A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant.

If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the project’s density and unit type, and those shall apply.
(B) (i) Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following:
(I) Render the project infeasible.
(II) Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii) The local agency shall bear the burden of proof of complying with clause (i).
(C) (i) A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii) For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builder’s remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h). (iii) A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv) A project that dedicates units to extremely low-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915. (v) All units dedicated to extremely low-income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
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(D) (i) The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii) The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii) Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose.
(E) A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builder’s remedy project. (F) (i) A builder’s remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123.
(ii) A builder’s remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4.
(G) (i) (I) If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement.
(II) Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind. (III) Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV) A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
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(ii) Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units.
(iii) Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law.
(7) (A) For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builder’s remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.
(B) Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builder’s remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(8) A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9).
(9) For purposes of this subdivision, “objective, quantifiable, written development standards, conditions, and policies” means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project. (g) This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem. (h) The following definitions apply for the purposes of this section:
(1) “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors.
(2) “Housing development project” means a use consisting of any of the following:
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A - SB 457 Amendments

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(A) Residential units only.
(B) Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions:
(i) At least two-thirds of the new or converted square footage is designated for residential use.
(ii) At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I) The project includes at least 500 net new residential units. (II) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(iii) At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
(I) The project includes at least 500 net new residential units. (II) The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III) The project demolishes at least 50 percent of the existing nonresidential uses on the site.
(IV) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(C) Transitional housing or supportive housing.
(D) Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(3) (A) “Housing for very low, low-, or moderate-income households” means housing for lower income households, mixed-income households, or moderate-income households.
(B) “Housing for lower income households” means a housing development project in which 100 percent of the units, excluding managers’ units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C) (i) “Housing for mixed-income households” means any of the following:
(I) A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II) A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code.
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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
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(III) A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV) A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii) All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following:
(I) The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II) The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years.
(D) “Housing for moderate-income households” means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4) “Area median income” means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5) Notwithstanding any other law, until January 1, 2030, “deemed complete” means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete. (6) “Disapprove the housing development project” includes any instance in which a local agency does any of the following:
(A) Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit. (B) Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph. (C) Fails to meet the time limits specified in Section 65913.3. (D) Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met:
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Item 17
Attachment D - March 24
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A - SB 457 Amendments

Item 17: Staff Report
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(i) The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100. (ii) Within five working days of receiving the applicant’s written notice described in clause (i), the local agency shall post the notice on the local agency’s internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located.

The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code. (iii) The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicant’s written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i).
(iv) Within 90 days of receipt of the applicant’s written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements:
(I) The findings articulate an objective basis for why the challenged course of conduct is necessary.
(II) The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing. (v) (I) If a local agency continues the challenged course of conduct described in the applicant’s written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant.
(II) If an applicant challenges a local agency’s course of conduct as a disapproval under this subparagraph, the local agency’s written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agency’s course of conduct constitutes a disapproval of the housing development project under this subparagraph.
(vi) A local agency’s action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph. (E) Fails to comply with Section 65905.5. For purposes of this subparagraph, a builder’s remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete.
(F) (i) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agency’s submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist.
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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
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(ii) In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination. (iii) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agency’s submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv) If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(G) Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f). (H) Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions (c) and (d) of Section 65941.1. (I) (i) Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii) This subparagraph shall become inoperative on January 1, 2031. (J) (i) Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied. (ii) This subparagraph shall become inoperative on January 1, 2031. (7) (A) For purposes of this section and Sections 65589.5.1 and 65589.5.2, “lawful determination” means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2. (B) This paragraph shall become inoperative on January 1, 2031. (8) “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing.
(9) Until January 1, 2030, “objective” means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.
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Attachment D - March 24
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(10) Notwithstanding any other law, until January 1, 2030, “determined to be complete” means that the applicant has submitted a complete application pursuant to Section 65943.
(11) “Builder’s remedy project” means a project that meets all of the following criteria:
(A) The project is a housing development project that provides housing for very low, low-, or moderate-income households.
(B) On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article.
(C) The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i) The density does not exceed the greatest of the following densities:
(I) Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II) Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III) The density that is consistent with the density specified in the housing element.
(ii) Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I) One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II) A very low vehicle travel area, as defined in subdivision (h). (III) A high or highest resource census tract, as identified by the latest edition of the “CTCAC/HCD Opportunity Map” published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development. (D) (i) On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site. (I) For purposes of this subparagraph, “commuter rail” means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares. (II) For purposes of this subparagraph, “heavy rail” means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading.
(ii) On all other sites with a minimum density requirement, the density of the project shall not be less than the local agency’s minimum density or one-half of the 03/19/25 06:40 PM
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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
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minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E) The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16. (12) “Condition approval” includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies. (13) “Unit type” means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel. (14) “Proposed by the applicant” means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses.
(i) If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development project’s application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o).
(j) (1) When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
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program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i) Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units.
(ii) Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units.
(B) If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3) For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.
(4) For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k) (1) (A) (i) The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
(I) The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section.
(II) The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section. (III) (ia) Subject to sub-subclause (ib), the local agency, in violation of subdivision (o), required or attempted to require a housing development project to 03/19/25 06:40 PM
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comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted.
(ib) This subclause shall become inoperative on January 1, 2030. (IV) The local agency violated a provision of this section applicable to a builder’s remedy project.
(ii) If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorney’s fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorney’s fees in either of the following instances:
(I) The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section.
(II) (ia) In a case concerning a disapproval within the meaning of subparagraph (I) or (J) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval. (ib) This subclause shall become inoperative on January 1, 2031. (B) Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agency’s progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly 03/19/25 06:40 PM
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constructed housing units affordable to extremely low, very low, or low-income households.
(C) If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency.
(D) Nothing in this section shall limit the court’s inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2) For purposes of this subdivision, “housing organization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency.

A housing organization shall be entitled to reasonable attorney’s fees and costs if it is the prevailing party in an action to enforce this section. (l) If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the court’s order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, “bad faith” includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit. (m) (1) Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial court’s order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such 03/19/25 06:40 PM
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further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant. (2) (A) A disapproval within the meaning of subparagraph (I) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicant’s timely written notice. (B) This paragraph shall become inoperative on January 1, 2031. (3) (A) A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicant’s timely written notice.
(B) This paragraph shall become inoperative on January 1, 2031. (n) In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioner’s points and authorities, (2) by the respondent with respondent’s points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(o) (1) Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted. (2) Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A) In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B) A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C) Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D) The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, 03/19/25 06:40 PM
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following the date that the project received final approval. For purposes of this subparagraph:
(i) “Affordable housing project” means a housing development that satisfies both of the following requirements:
(I) Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915. (II) All of the units within the development, excluding managers’ units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii) “Final approval” means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met:
(I) The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed.
(II) If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project.
(E) The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided.

For purposes of this subdivision, “square footage of construction” means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
(3) This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4) For purposes of this subdivision, “ordinances, policies, and standards” includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions.
(5) This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section.
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project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7) With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing. (8) (A) This subdivision shall apply to a housing development project that submits a preliminary application pursuant to Section 65941.1 before January 1, 2030. (B) This subdivision shall become inoperative on January 1, 2034. (p) (1) Upon any motion for an award of attorney’s fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agency’s approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agency’s approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorney’s fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2. (2) This subdivision shall become inoperative on January 1, 2031. (q) This section shall be known, and may be cited, as the Housing Accountability Act.
(r) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

Amendment 3
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PROPOSED AMENDMENTS TO SENATE BILL NO. 457
SENATE BILL No. 457
Introduced by Senator Becker
February 19, 2025
An act to amend Section 65400 Sections 65585.03 and 65589.5 of the Government Code, relating to land use.
legislative counsel’s digest
SB 457, as introduced, Becker. General plan: annual report: suite-style student housing quarters. Housing element compliance: Housing Accountability Act: housing disapprovals.

The Planning and Zoning Law requires each county and each city to adopt a compr ehensive, long-term g eneral plan for the physical development of the county or city , and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law, commonly referred to as the housing element law, prescribes requirements for a city’s or county’s preparation of, and compliance with, its housing element, and r equires the Department of Housing and Community De velopment to r eview and determine whether the housing element substantially complies with the housing element law, as specified.

Existing law within the Planning and Zoning Law , the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning appr oval in a manner that r enders infeasible, a housing de velopment pr oject for very low , low-, or moderate-income households or an emergency shelter unless the local agency mak es written findings, based on a pr eponderance of the evidence, that one of 6 specified conditions e xist. Among these conditions, the act allows a local a gency to disappr ove a housing

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development project that is inconsistent with the jurisdiction’ s zoning ordinances and general plan land use designation as it e xisted on the date the application was deemed complete , if the jurisdiction has adopted a r evised housing element that is in substantial compliance with the housing element law , as specified. The act defines “deemed complete” for purposes of its provisions, until January 1, 2030, to mean that the applicant has submitted a preliminary application, as specified, or if the applicant has not submitted a pr eliminary application, the submission of a completed application, as specified.

This bill, for the purpose of allowing a local agency to disapprove a housing development project that is inconsistent with the jurisdiction’s zoning ordinances and general plan land use designation, as described above, would revise the definition of “deemed complete” to mean that the applicant submitted a complete application, as specified. The bill would provide that this definition would apply to an application that as of January 1, 2026 has not (1) received approval from a local agency or (2) incurred substantial liability in good faith reliance upon the local agency approval.

Existing law pr ovides that a housing element or amendment is considered substantially compliant with the housing element law when the local a gency adopts a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law , and the department’ s compliance findings have not been super seded by subsequent contr ary findings by the department or by a decision of a court of competent jurisdiction or the court’s decision has not been overturned or superseded by a subsequent court decision or by statute, as applicable.

This bill would, instead, provide that a housing element or amendment is considered substantially compliant with the housing element law on the date when the governing body of a local agency adopts the housing element or amendment, provided that after the date the housing element or amendment is adopted and without further action by the governing body, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law , and the department’ s compliance findings are not superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the court’s decision is not overturned or superseded by a subsequent court decision or by statute.
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The Planning and Zoning La w requires a city or county to adopt a general plan for land use de velopment within its boundaries that includes, among other things, a housing element. That law requires the housing element to include, among other things, an identification and analysis of existing and projected housing needs. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community De velopment that includes, among other specified information, the number of units of housing demolished and new units of housing that ha ve been issued a completed entitlement, a b uilding permit, or a certificate of occupancy.

This bill would, for the 7th and subsequent revisions of the housing element, require the city or county to additionally include in the annual report the number of suite-style student housing quarters, subject to specified requirements, within the number of housing units demolished and ne w units. By requiring a city or county to include additional information in the annual report, the bill would impose a state-mandated local program.

The bill w ould include findings that changes proposed by this bill address a matter of state wide concern rather than a municipal af fair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes no.​ State-mandated local program: yes no.​
The people of the State of California do enact as follows:

SECTION 1. Section 65585.03 of the  Government Code   is amended to read:
65585.03. A housing element or amendment shall be considered to be in substantial compliance with this article on the date when the governing body of a local agency adopts the housing element or amendment for the current planning period in accordance with Section 65585 and 65585, pr ovided that either of the follo wing apply: occurs after the date the housing element or amendment is adopted and without further action by the governing body:
99 SB 457 — 3 —

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(a)  The department finds that the adopted housing element or amendment is in substantial compliance with this article and the department’s compliance findings ha ve not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction.
(b)  A court of competent jurisdiction determines that the adopted housing element or amendment substantially complies with this article and the court’ s decision has not been o verturned or superseded by a subsequent court decision or by statute.

SEC. 2. Section 65589.5 of the  Government Code  is amended to read:
65589.5. (a)  (1)  The Legislature finds and declares all of the following:
(A)  The lack of housing, including emer gency shelters, is a critical problem that threatens the economic, en vironmental, and social quality of life in California.
(B)  California housing has become the most e xpensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and e xactions be paid by producers of housing.
(C)  Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support emplo yment gro wth, imbalance in jobs and housing, reduced mobility, urban spra wl, e xcessive commuting, and air quality deterioration.
(D)  Many local governments do not give adequate attention to the economic, en vironmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2)  In enacting the amendments made to this section by the act adding this paragraph, the Le gislature further finds and declares the following:
(A)  California has a housing supply and af fordability crisis of historic proportions. The consequences of f ailing to ef fectively and aggressi vely confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and 99 — 4 — SB 457

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businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives.
(B)  While the causes of this crisis are multiple and comple x, the absence of meaningful and ef fective polic y reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor.
(C)  The crisis has gro wn so acute in California that supply , demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D)  According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E)  California’s o verall home o wnership rate is at its lo west level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita.

Only one-half of California’ s households are able to af ford the cost of housing in their local regions.
(F)  Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. (G)  The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent.
(H)  When Californians ha ve access to safe and af fordable housing, they have more money for food and health care; they are less lik ely to become homeless and in need of
government-subsidized services; their children do better in school; and b usinesses ha ve an easier time recruiting and retaining employees.
(I)  An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse g as emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly w orking- and middle-class households. California’s cumulative housing shortfall therefore has not only national b ut international en vironmental consequences.
(J)  California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has 99 SB 457 — 5 —

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enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K)  The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of ne w housing for all economic segments of California’ s communities by meaningfully and effectively curbing the capability of local go vernments to den y, reduce the density for, or render infeasible housing de velopment projects and emergency shelters. That intent has not been fulfilled. (L)  It is the polic y of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing. (3)  It is the intent of the Le gislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdi vision (d) and paragraph (1) of subdivision (j), arise infrequently.
(4)  It is the intent of the Le gislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdi vision (h) and adding those pro visions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insof ar as the y are substantially the same as e xisting la w, shall be considered restatements and continuations of existing law, and not new enactments.
(b)  It is the policy of the state that a local government not reject or mak e infeasible housing de velopment projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and en vironmental ef fects of the action and without complying with subdivision (d).
(c)  The Le gislature also recognizes that premature and unnecessary de velopment of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state.

Furthermore, it is the policy of the state that development should be guided a way from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d)  For a housing de velopment project for v ery low, low-, or moderate-income households, or an emer gency shelter, a local 99 — 6 — SB 457

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agency shall not disappro ve the housing de velopment project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design re view standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1)  The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or e xceeded its share of the re gional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those cate gories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community De velopment pursuant to Section 65400. In the case of an emer gency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional appro val pursuant to this paragraph shall be in accordance with applicable law, rule, or standards. (2)  The housing development project or emer gency shelter as proposed would have a specific, adv erse impact upon the public health or safety, and there is no feasible method to satisf actorily mitigate or avoid the specific, adv erse impact without rendering the de velopment unaf fordable to lo w- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as the y existed on the date the application was deemed complete. The following shall not constitute a specific, adv erse impact upon the public health or safety:
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(A)  Inconsistency with the zoning ordinance or general plan land use designation.
(B)  The eligibility to claim a welf are e xemption under subdivision (g) of Section 214 of the Revenue and Taxation Code. (3)  The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the de velopment unaf fordable to lo w- and
moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4)  The housing de velopment project or emer gency shelter is proposed on land zoned for agriculture or resource preserv ation that is surrounded on at least tw o sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5)  On the date an application for the housing de velopment project or emergency shelter was deemed complete, the jurisdiction had adopted a re vised housing element that w as in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A)  This paragraph shall not be utilized to disappro ve or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or a vailable for v ery lo w, lo w-, or moderate-income households in the jurisdiction’ s housing element if the housing development project is consistent with the density specified in the housing element, e ven though the housing de velopment project was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B)  If the local agenc y has f ailed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has f ailed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emer gency shelter, as required by paragraph (4) of 99 — 8 — SB 457

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subdivision (a) of Section 65583, then this paragraph shall not be utilized to disappro ve or conditionally appro ve an emer gency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(C)  (i)  Notwithstanding subdivision (h), for purposes of this paragraph, “deemed complete” means the applicant has submitted a complete application pursuant to Section 65943.
(ii)  This subpar agraph applies to an application that, as of January 1, 2026, has not met both of the following criteria:
(I)  Received a local agency approval.
(II)  Incurred substantial liability in good faith r eliance upon the local agency approval.
(6)  On the date an application for the housing de velopment project or emergency shelter was deemed complete, the jurisdiction did not ha ve an adopted re vised housing element that w as in substantial compliance with this article and the housing development project is not a builder’s remedy project.
(e)  Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall an ything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)  (1)  Except as pro vided in paragraphs (6) and (8) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agenc y from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need pursuant to Section 65584. Ho wever, the
development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted 99 SB 457 — 9 —

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on the site and proposed by the de velopment. Nothing in this section shall limit a project’ s eligibility for a density bonus, incentive, or concession, or w aiver or reduction of de velopment standards and parking ratios, pursuant to Section 65915. (2)  Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agenc y from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdiction’s need for emer gency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to f acilitate and accommodate the de velopment of the emergency shelter project.
(3)  Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agenc y from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and f acilities to the housing development project or emergency shelter.
(4)  For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar pro vision if there is substantial e vidence that w ould allo w a reasonable person to conclude that the housing de velopment project or emer gency shelter is consistent, compliant, or in conformity.
(5)  For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition appro val of the housing de velopment project or emergency shelter.
(6)  Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builder’s remedy project:
(A)  A local agency may only require the project to comply with the objecti ve, quantifiable, written de velopment standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed 99 — 10 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
37 Packet Pg. 585 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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by the applicant. If the local agency has no general plan designation or zoning classification that w ould have allowed the density and unit type proposed by the applicant, the de velopment proponent may identify an y objecti ve, quantifiable, written de velopment standards, conditions, and policies associated with a dif ferent general plan designation or zoning classification within that jurisdiction, that facilitate the project’s density and unit type, and those shall apply.
(B)  (i)  Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agenc y shall not apply an y individual or combination of objecti ve, quantifiable, written de velopment standards, conditions, and policies to the project that do any of the following:
(I)  Render the project infeasible.
(II)  Preclude a project that meets the requirements allo wed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or w aiver or reduction of de velopment standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii)  The local agency shall bear the burden of proof of complying with clause (i).
(C)  (i)  A project applicant that qualifies for a density bonus pursuant to Section 65915 shall recei ve tw o incenti ves or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii)  For a project seeking density bonuses, incenti ves, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allo wable residential density or base density means the density permitted for a builder’s remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iii)  A local agency shall grant an y density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv)  A project that dedicates units to e xtremely lo w-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdi vision (h) shall be eligible for the same density bonus, incenti ves or concessions, and w aivers or 99 SB 457 — 11 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
38 Packet Pg. 586 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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reductions of de velopment standards as pro vided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915.
(v)  All units dedicated to e xtremely lo w-income, v ery lo w income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
(D)  (i)  The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii)  The project shall not be required to apply for , or recei ve, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii)  Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, polic y, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose. (E)  A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builder’s remedy project.
(F)  (i)  A b uilder’s remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123. (ii)  A b uilder’s remedy project shall be deemed to be in compliance with the objecti ve zoning standards, objecti ve subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdi vision (a) of Section 65913.4.
(G)  (i)  (I)  If the local agenc y had a local af fordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of af fordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, 99 — 12 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
39 Packet Pg. 587 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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except as pro vided in subclauses (II) and (III), the local agenc y may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with an y other aspect of the local affordable housing requirement.
(II)  Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind.
(III)  Housing for mixed-income households that is required to dedicate 20 percent of the units to af fordable units shall not be required to dedicate any of the affordable units at an income level deeper than lo wer income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)  A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of e vidence, that compliance with the local percentage requirement or the affordability le vel, or both, w ould not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
(ii)  Affordable units in the de velopment project shall ha ve a comparable bedroom and bathroom count as the market rate units. (iii)  Each affordable unit dedicated pursuant to this subparagraph shall count to ward satisfying a local af fordable housing requirement. Each af fordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law. (7)  (A)  For a housing de velopment project application that is deemed complete before January 1, 2025, the de velopment proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builder’s remedy project, it may choose to be subject to an y 99 SB 457 — 13 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
40 Packet Pg. 588 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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or all of the provisions of this section applicable as of January 1, 2025.
(B)  Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the de velopment proponent may choose to re vise their application so that the project is a builder’s remedy project, without being required to resubmit a preliminary application, e ven if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(8)  A housing de velopment project proposed on a site that is identified as suitable or a vailable for v ery lo w, lo w-, or moderate-income households in the jurisdiction’s housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9).
(9)  For purposes of this subdi vision, “objective, quantifiable, written development standards, conditions, and policies” means criteria that involve no personal or subjective judgment by a public official and are uniformly v erifiable by reference to an e xternal and uniform benchmark or criterion a vailable and kno wable by both the development applicant or proponent and the public official before submittal, including, b ut not limited to, an y standard, ordinance, or policy described in paragraph (4) of subdivision (o).

Nothing herein shall af fect the oblig ation of the housing development project to comply with the minimum b uilding standards appro ved by the California Building Standards Commission as pro vided in P art 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objecti ve, quantifiable, written de velopment standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project.
(g)  This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emer gency shelter, is a critical statewide problem.
99 — 14 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
41 Packet Pg. 589 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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(h)  The follo wing definitions apply for the purposes of this section:
(1)  “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. (2)  “Housing development project” means a use consisting of any of the following:
(A)  Residential units only.
(B)  Mixed-use de velopments consisting of residential and nonresidential uses that meet any of the following conditions:
(i)  At least two-thirds of the ne w or converted square footage is designated for residential use.
(ii)  At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I)  The project includes at least 500 net new residential units. (II)  No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (iii)  At least 50 percent of the net ne w or con verted square footage is designated for residential use and the project meets all of the following:
(I)  The project includes at least 500 net new residential units. (II)  The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III)  The project demolishes at least 50 percent of the e xisting nonresidential uses on the site.
(IV)  No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (C)  Transitional housing or supportive housing.
(D)  Farmworker housing, as defined in subdi vision (h) of Section 50199.7 of the Health and Safety Code.
(3)  (A)  “Housing for v ery lo w, lo w-, or moderate-income households” means housing for lo wer income households, mixed-income households, or moderate-income households. (B)  “Housing for lower income households” means a housing development project in which 100 percent of the units, excluding 99 SB 457 — 15 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
42 Packet Pg. 590 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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managers’ units, are dedicated to lo wer income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C)  (i)  “Housing for mixed-income households” means any of the following:
(I)  A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to e xtremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II)  A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to v ery low income households, as defined in Section 50105 of the Health and Safety Code.
(III)  A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)  A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii)  All units dedicated to e xtremely lo w income, v ery lo w income, and low-income households pursuant to clause (i) shall meet both of the following:
(I)  The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II)  The development proponent shall agree to, and the local agency shall ensure, the continued af fordability of all affordable rental units included pursuant to this section for 55 years and all 99 — 16 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
43 Packet Pg. 591 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
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affordable ownership units included pursuant to this section for a period of 45 years.
(D)  “Housing for moderate-income households” means a
housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an af fordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4)  “Area median income” means area median income as
periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5)  Notwithstanding an y other la w, until January 1, 2030, “deemed complete” means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or , if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete.
(6)  “Disapprove the housing development project” includes any instance in which a local agency does any of the following:
(A)  Votes or tak es final administrati ve action on a proposed housing development project application and the application is disapproved, including an y required land use appro vals or entitlements necessary for the issuance of a building permit. (B)  Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph.
(C)  Fails to meet the time limits specified in Section 65913.3. (D)  Fails to cease a course of conduct undertak en for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that ef fectively disappro ves the proposed housing development without taking final administrative action if all of the following conditions are met:
99 SB 457 — 17 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
44 Packet Pg. 592 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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(i)  The project applicant pro vides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100.
(ii)  Within five working days of receiving the applicant’s written notice described in clause (i), the local agency shall post the notice on the local agency’s internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code. (iii)  The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicant’s written notice and shall not mak e a determination until at least 60 days after the applicant has gi ven written notice to the local agenc y pursuant to clause (i).
(iv)  Within 90 days of receipt of the applicant’s written notice described in clause (i), the local agenc y shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the follo wing requirements:
(I)  The findings articulate an objecti ve basis for wh y the challenged course of conduct is necessary.
(II)  The findings provide clear instructions on what the applicant must submit or supplement so that the local agenc y can mak e a final determination re garding the ne xt necessary appro val or set the date and time of the next hearing.
(v)  (I)  If a local agenc y continues the challenged course of conduct described in the applicant’ s written notice and f ails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disappro val of the housing de velopment project under this subparagraph in an action taken by the applicant. (II)  If an applicant challenges a local agency’s course of conduct as a disapproval under this subparagraph, the local agency’s written findings described in clause (i v) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agenc y’s 99 — 18 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
45 Packet Pg. 593 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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course of conduct constitutes a disappro val of the housing development project under this subparagraph.
(vi)  A local agency’s action in furtherance of complying with the California En vironmental Quality Act (Di vision 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph. (E)  Fails to comply with Section 65905.5. For purposes of this subparagraph, a b uilder’s remedy project shall be deemed to comply with the applicable, objecti ve general plan and zoning standards in effect at the time an application is deemed complete. (F)  (i)  Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agenc y’s submittal requirement checklist. The local agency shall bear the b urden of proof that the required item is listed on the submittal requirement checklist.
(ii)  In a subsequent review of an application pursuant to Section 65943, requests the applicant pro vide new information that w as not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdi vision (c) of Section 65943. The local agenc y shall bear the burden of proof that the required item was identified in the initial determination.
(iii)  Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agency’s submittal requirement checklist, and the local agenc y upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv)  If a local agenc y determines that an application is incomplete under Section 65943 after tw o resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(G)  Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f).
(H)  Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that 99 SB 457 — 19 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
46 Packet Pg. 594 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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the applicant has otherwise lost its v ested rights under the preliminary application for any reason other than those described in subdivisions (c) and (d) of Section 65941.1.
(I)  (i)  Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii)  This subparagraph shall become inoperative on January 1, 2031.
(J)  (i)  Fails to adopt a ne gative declaration or addendum for the project, to certify an en vironmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities en vironmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California En vironmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied.
(ii)  This subparagraph shall become inoperative on January 1, 2031.
(7)  (A)  For purposes of this section and Sections 65589.5.1 and 65589.5.2, “lawful determination” means any final decision about whether to appro ve or disappro ve a statutory or cate gorical exemption or a ne gative declaration, addendum, en vironmental impact report, or comparable en vironmental re view document under the California En vironmental Quality Act (Di vision 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2. (B)  This paragraph shall become inoperative on January 1, 2031. (8)  “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. (9)  Until January 1, 2030, “objecti ve” means in volving no personal or subjecti ve judgment by a public official and being uniformly v erifiable by reference to an e xternal and uniform benchmark or criterion a vailable and kno wable by both the development applicant or proponent and the public official. 99 — 20 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
47 Packet Pg. 595 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
(10)  Notwithstanding an y other la w, until January 1, 2030, “determined to be complete” means that the applicant has submitted a complete application pursuant to Section 65943.
(11)  “Builder’s remedy project” means a project that meets all of the following criteria:
(A)  The project is a housing development project that provides housing for very low, low-, or moderate-income households. (B)  On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not ha ve a housing element that w as in substantial compliance with this article.
(C)  The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i)  The density does not e xceed the greatest of the follo wing densities:
(I)  Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II)  Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III)  The density that is consistent with the density specified in the housing element.
(ii)  Notwithstanding clause (i), the greatest allo wable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I)  One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II)  A very low vehicle travel area, as defined in subdi vision (h).
(III)  A high or highest resource census tract, as identified by the latest edition of the “CTCA C/HCD Opportunity Map”
published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(D)  (i)  On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site.
99 SB 457 — 21 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
48 Packet Pg. 596 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
RN 25 12553 10 03/19/25

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SECUREDCOPY
(I)  For purposes of this subparagraph, “commuter rail” means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares. (II)  For purposes of this subparagraph, “hea vy rail” means an electric railway with the capacity for a hea vy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fix ed rails, separate rights-of-way from which all other v ehicular and foot traffic are excluded, and high platform loading.
(ii)  On all other sites with a minimum density requirement, the density of the project shall not be less than the local agenc y’s minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E)  The project site does not ab ut a site where more than one-third of the square footage on the site has been used, within the past three years, by a hea vy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16. (12)  “Condition approval” includes imposing on the housing development project, or attempting to subject it to, de velopment standards, conditions, or policies.
(13)  “Unit type” means the form of ownership and the kind of residential unit, including, b ut not limited to, single-f amily detached, single-f amily attached, for -sale, rental, multif amily, townhouse, condominium, apartment, manuf actured homes and mobilehomes, factory-built housing, and residential hotel. (14)  “Proposed by the applicant” means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, b uilding massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses. (i)  If any city, county, or city and county denies appro val or imposes conditions, including design changes, lo wer density, or a reduction of the percentage of a lot that may be occupied by a 99 — 22 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
49 Packet Pg. 597 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
03/19/25 06:40 PM

SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
building or structure under the applicable planning and zoning in force at the time the housing development project’s application is complete, that have a substantial adverse effect on the viability or affordability of a housing de velopment for v ery lo w, lo w-, or moderate-income households, and the denial of the de velopment or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to sho w that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the e vidence in the record, and with the requirements of subdivision (o).
(j)  (1)  When a proposed housing development project complies with applicable, objecti ve general plan, zoning, and subdi vision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A)  The housing de velopment project w ould have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as the y existed on the date the application was deemed complete.
(B)  There is no feasible method to satisf actorily mitig ate or avoid the adverse impact identified pursuant to paragraph (1), other than the disappro val of the housing de velopment project or the approval of the project upon the condition that it be de veloped at a lower density.
(2)  (A)  If the local agenc y considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar pro vision as specified in this subdi vision, it shall pro vide the applicant with written documentation identifying the pro vision or pro visions, and an 99 SB 457 — 23 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
50 Packet Pg. 598 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
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SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i)  Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units. (ii)  Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units. (B)  If the local agenc y f ails to pro vide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3)  For purposes of this section, the receipt of a density bonus, incentive, concession, w aiver, or reduction of de velopment standards pursuant to Section 65915 shall not constitute a v alid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity , with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision. (4)  For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria b ut the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agenc y may require the proposed housing de velopment project to comply with the objecti ve standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k)  (1)  (A)  (i)  The applicant, a person who would be eligible to apply for residenc y in the housing de velopment project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in an y action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
99 — 24 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
51 Packet Pg. 599 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
RN 25 12553 10 03/19/25

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SECUREDCOPY
(I)  The local agency, in violation of subdivision (d), disapproved a housing de velopment project or conditioned its appro val in a manner rendering it infeasible for the development of an emergency shelter, or housing for v ery lo w, lo w-, or moderate-income households, including f armworker housing, without making the findings required by this section.
(II)  The local agency, in violation of subdivision (j), disapproved a housing de velopment project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section.
(III)  (ia)  Subject to sub-subclause (ib), the local agenc y, in violation of subdi vision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in ef fect when a preliminary application was submitted.
(ib)  This subclause shall become inoperative on January 1, 2030. (IV)  The local agenc y violated a pro vision of this section applicable to a builder’s remedy project.
(ii)  If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to e xceed 60 days, including, but not limited to, an order that the local agency take action on the housing de velopment project or emer gency shelter. The court may issue an order or judgment directing the local agenc y to appro ve the housing de velopment project or emergency shelter if the court finds that the local agency acted in bad f aith when it disappro ved or conditionally appro ved the housing de velopment or emer gency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall a ward reasonable attorney’s fees and costs of suit to the plaintif f or petitioner , pro vided, however, that the court shall not award attorney’s fees in either of the following instances:
(I)  The court finds, under e xtraordinary circumstances, that awarding fees would not further the purposes of this section. (II)  (ia)  In a case concerning a disapproval within the meaning of subparagraph (I) or (J) of paragraph (6) of subdivision (h), the court finds that the local agenc y acted in good f aith and had reasonable cause to disapprove the housing development project 99 SB 457 — 25 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
52 Packet Pg. 600 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
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SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
due to the e xistence of a controlling question of la w about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there w as a substantial ground for dif ference of opinion at the time of the disapproval.
(ib)  This subclause shall become inoperative on January 1, 2031. (B)  Upon a determination that the local agenc y has f ailed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agenc y that has violated this section and require the local agenc y to deposit an y fine le vied pursuant to this subdi vision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing de velopment project on the date the application w as deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agency’s progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and an y prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and e xpend the mone y in the local housing trust fund within fiv e years for the sole purpose of financing ne wly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing ne wly constructed housing units af fordable to extremely low, very low, or low-income households.
(C)  If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agenc y and to appro ve the housing 99 — 26 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
53 Packet Pg. 601 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
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SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agenc y on similar projects, shall be deemed to be appro ved unless the applicant consents to a different decision or action by the local agency. (D)  Nothing in this section shall limit the court’ s inherent authority to mak e an y other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2)  For purposes of this subdi vision, “housing or ganization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit or ganization whose mission includes pro viding or advocating for increased access to housing for lo w-income households and have filed written or oral comments with the local agency prior to action on the housing de velopment project. A housing or ganization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agenc y. A housing or ganization shall be entitled to reasonable attorney’s fees and costs if it is the prevailing party in an action to enforce this section.
(l)  If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the court’s order or judgment within the time period prescribed by the court, the court, in addition to an y other remedies pro vided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agenc y violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, “bad faith” includes, but is not limited to, an action or inaction that is fri volous, prete xtual, intended to cause unnecessary delay, or entirely without merit.
(m)  (1)  Any action brought to enforce the pro visions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdi vision (c) of 99 SB 457 — 27 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
54 Packet Pg. 602 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
Section 1094.6 of the Code of Ci vil Procedure no later than 30 days after the petition is serv ed, pro vided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the pro visions of this section shall be filed and serv ed no later than 90 days from the later of (1) the ef fective date of a decision of the local agenc y imposing conditions on, disapproving, or any other final action on a housing de velopment project or (2) the e xpiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial court’s order, a party may, in order to obtain appellate re view of the order , file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant.
(2)  (A)  A disapproval within the meaning of subparagraph (I) of paragraph (6) of subdi vision (h) shall be final for purposes of this subdi vision, if the local agenc y did not mak e a la wful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicant’ s timely written notice.
(B)  This paragraph shall become inoperative on January 1, 2031. (3)  (A)  A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdi vision (h) shall be final for purposes of this subdi vision, if the local agenc y did not mak e a la wful determination within 90 days of the applicant’ s timely written notice.
(B)  This paragraph shall become inoperative on January 1, 2031. (n)  In any action, the record of the proceedings before the local agency shall be filed as e xpeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioner’s points and authorities, (2) by the respondent with respondent’s points and authorities, (3) after payment of costs by the petitioner , or (4) as 99 — 28 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
55 Packet Pg. 603 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
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SUBSTANTIVE
RN 25 12553 10 03/19/25

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SECUREDCOPY
otherwise directed by the court. If the e xpense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs. (o)  (1)  Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing de velopment project shall be subject only to the ordinances, policies, and standards adopted and in ef fect when a preliminary application including all of the information required by subdi vision (a) of Section 65941.1 w as submitted.
(2)  Paragraph (1) shall not prohibit a housing de velopment project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A)  In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B)  A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard be yond those in ef fect when a preliminary application w as submitted is necessary to mitig ate or a void a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C)  Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to a void or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D)  The housing de velopment project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph:
(i)  “Affordable housing project” means a housing development that satisfies both of the following requirements:
(I)  Units within the de velopment are subject to a recorded affordability restriction for at least 55 years for rental housing and 99 SB 457 — 29 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
56 Packet Pg. 604 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
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SUBSTANTIVE
RN 25 12553 10 03/19/25

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SECUREDCOPY
45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdi vision (c) of Section 65915.
(II)  All of the units within the development, excluding managers’ units, are dedicated to lo wer income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii)  “Final approval” means that the housing development project has received all necessary appro vals to be eligible to apply for , and obtain, a building permit or permits and either of the following is met:
(I)  The e xpiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed. (II)  If a challenge is filed, that challenge is fully resolv ed or settled in favor of the housing development project.
(E)  The housing de velopment project is re vised follo wing submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, e xclusive of an y increase resulting from the receipt of a density bonus, incenti ve, concession, waiver, or similar provision, including any other locally authorized program that of fers additional density or other development bonuses when af fordable housing is pro vided. For purposes of this subdi vision, “square footage of construction” means the b uilding area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations). (3)  This subdi vision does not pre vent a local agenc y from subjecting the additional units or square footage of construction that result from project re visions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4)  For purposes of this subdivision, “ordinances, policies, and standards” includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and an y other rules, re gulations, requirements, and policies of a local agency, as defined in Section 66000, including 99 — 30 — SB 457

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
57 Packet Pg. 605 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
03/19/25 06:40 PM

SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions. (5)  This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by an y other la w, including an y other part of this section.
(6)  This subdivision shall not restrict the authority of a public agency or local agenc y to require mitig ation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7)  With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdi vision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and b usiness licensing requirements for owners of rental housing.
(8)  (A)  This subdivision shall apply to a housing development project that submits a preliminary application pursuant to Section 65941.1 before January 1, 2030.
(B)  This subdivision shall become inoperati ve on January 1, 2034.
(p)  (1)  Upon an y motion for an a ward of attorne y’s fees pursuant to Section 1021.5 of the Code of Ci vil Procedure, in a case challenging a local agenc y’s appro val of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a lar ge class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agenc y’s appro val furthers policies of this section, including, but not limited to, subdi visions (a), (b), and (c), the suitability of the site for a housing de velopment, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorney’s fees and costs shall rarely, if ever, be awarded if a local agenc y, acting in good f aith, approved a housing development project that satisfies conditions established 99 SB 457 — 31 —

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Item 17
Attachment D - March 24
Supplemental Attachment
A - SB 457 Amendments

Item 17: Staff Report
Pg.
58 Packet Pg. 606 of 660

PROPOSED AMENDMENTS

PROPOSED AMENDMENTS
RN 25 12553 10
03/19/25 06:40 PM

SUBSTANTIVE
RN 25 12553 10 03/19/25

SECUREDCOPY

SECUREDCOPY
in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2. (2)  This subdi vision shall become inoperati ve on January 1, 2031.
(q)  This section shall be kno wn, and may be cited, as the Housing Accountability Act.
(r)  The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SECTION 1. Section 65400 of the Government Code is
amended to read:
65400. (a)  After the le gislative body has adopted all or part of a general plan, the planning agenc y shall do both of the following:
(1)  Investigate and mak e recommendations to the le gislative body regarding reasonable and practical means for implementing the general plan or element of the general plan so that it will serve as an ef fective guide for orderly gro wth and de velopment, preservation and conserv ation of open-space land and natural resources, and the efficient expenditure of public funds relating to the subjects addressed in the general plan.
(2)  Provide by April 1 of each year an annual report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development that includes all of the following:
(A)  The status of the plan and progress in its implementation. (B)  (i)  (I)  The progress in meeting its share of regional housing needs determined pursuant to Section 65584, including the need for extremely low income households, as determined pursuant to Section 65583, and local ef forts to remo ve go vernmental constraints to the maintenance, improvement, and development of housing pursuant to paragraph (3) of subdi vision (c) of Section 65583.
(II)  The annual report shall include the progress in meeting the city’s or county’s progress in meeting its share of regional housing need, as described in subclause (I), for the sixth and pre vious revisions of the housing element.
(ii)  The housing element portion of the annual report, as required by this paragraph, shall be prepared through the use of standards, 99 — 32 — SB 457

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