Agenda packet — Palo Alto City Council, May 5, 2025 (part 1 of 2)

CITY COUNCIL
Regular Meeting
Monday, May 05, 2025
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833

PUBLIC COMMENTS
General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

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

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

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

TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. 1 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.

CALL TO ORDER

SPECIAL ORDERS OF THE DAY (5:30 - 5:50 PM)

1. City Employee Years of Service Awards and Proclamation acknowledging Public Service Recognition Week: May 4-10, 2025

2. Proclamation Honoring Russ Reich for his Service to the City of Palo Alto

3. Proclamation of May 2025 as Affordable Housing Month CLOSED SESSION (5:50 - 7:50 PM)

4. CONFERENCE WITH CITY ATTORNEY - EXISTING LITIGATION
Subject: McGavock v. City of Palo Alto, et al.

Santa Clara County Superior Court Case No.23-CV-413813
Authority: Government Code Section 54956.9(d)(1)
One Case, as Defendant

5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Authority: Government Code Section 54956.8
Property: 2470 Embarcadero Way, Assessor’s Parcel Number 008-03-072 Negotiating Parties: Bioscience Properties, Inc. City Negotiators: Karin North, Sunny Tong, Caio Arellano
Subject of Potential Negotiations: Lease Price and Terms of Payment

AGENDA CHANGES, ADDITIONS AND DELETIONS

PUBLIC COMMENT (7:50 - 8:20 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (8:20 - 8:30 PM) Members of the public may not speak to the item(s).

STUDY SESSION (8:30 - 9:30 PM)

6. City Manager Transmittal of the Fiscal Year 2026 Proposed Operating and Capital Budgets

2 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

Budget Books are Available at
:
https://www.paloalto.gov/budget

CONSENT CALENDAR (9:30 - 9:35 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

7. Approval of Minutes from April 14, 2025 and April 21, 2025 Meetings

8. 2025 City Council Priority Objectives, and Committee Objectives and Workplans

9. Approval of Contract Change Order No. 1 in the Amount of $1,500,000 to Contract C23186274 with Monterey Mechanical Company, for On-Call Emergency and Critical Construction Services at the Regional Water Quality Control Plant, for a Total Compensation Not-to-Exceed Amount of $3,000,000, funded by Wastewater Treatment Fund Capital Improvement Plant Repair, Retrofit, and Equipment Replacement Capital Project (WQ-19002); CEQA Status – Not a Project

10. Approval of Amendment and Extension of Supplement Agreement No.1 to the Master Funding Agreement Between the City of Palo Alto and the Metropolitan Transportation Commission, to Prepare a Downtown Housing Plan for the City of Palo Alto. CEQA Status: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15262.

11. Approval of Boards, Commissions, and Committees Interview Process as recommended by Policy and Services Committee
Supplemental Report added

12. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending PAMC Sections 2.04.190 and 2.04.200 to Set the Regular Meeting Time of the Finance Committee and the Policy and Services Committee by Resolution or Ordinance

13. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Section

18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 70 Encina Avenue from Service Commercial (CS) Zone to Planned Community Zone (PC)
CITY MANAGER COMMENTS (9:35 - 9:50 PM)

BREAK (15 MINUTES)

3 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

ACTION ITEMS (Item 14: 10:05 - 11:00 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

14. PUBLIC HEARING / QUASI-JUDICIAL. 4075 El Camino Way [23PLN-00202]: Adoption of an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility.

Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities).

ADJOURNMENT

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

15. Palo Alto Transportation Management Association 2024 Annual Report, 2026-28 Strategic Plan, and 2024 Commute Survey

OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 6, 2025
City Schools Liaison Committee May 6, 2025 CANCELED
Finance Committee May 7, 2025

Public Comment Letters
Schedule of Meetings

SUPPLEMENTAL / AMENDED AGENDA ITEMS

11. Approval of Boards, Commissions, and Committees Interview Process as recommended by Policy and Services Committee
Supplemental Report added

4 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

PUBLIC COMMENT INSTRUCTIONS
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CLICK HERE TO JOIN
Meeting ID: 362-027-238 Phone: 1-669-900-6833
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5 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

California Government Code §84308 , commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.
6 May 05, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.

City Council
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Human Resources
Meeting Date: May 5, 2025
Report #:2503-4393
TITLE
City Employee Years of Service Awards and Proclamation acknowledging Public Service Recognition Week: May 4-10, 2025

RECOMMENDATION
Staff recommends that City Council recognize employees for their years of dedicated service and acknowledge National Public Service Recognition Week for this week of May 4 – 10, 2025.

ATTACHMENTS
Attachment A: Public Service Recognition Proclamation 2025 APPROVED BY:

Sandra Blanch, Human Resources Director
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 7 of 288

Proclamation

PUBLIC SERVICE RECOGNITION WEEK
May 4 - 10, 2025
WHEREAS, Americans are served every single day by public servants at the federal, state, county and city levels. These unsung heroes do the work that keeps our nation working; and across our nation, public employees take not only jobs, but oaths of office; and
WHEREAS, m
any public servants risk their lives each day in service to the people of our communities, as well as provide safety inspections and patrols, maintain our infrastructure, operate our public facilities, and provide the diverse services demanded by the American people with integrity and diligence; and

WHEREAS,
public servants provide the institutional knowledge, experience, and continuity that supports the long term sustainability of our community assets and organizational history; and WHEREAS, here in our city, our staff promotes and sustains the superior quality of life in Palo Alto, and in partnership with our community delivers cost-effective services in a personal, responsive, and innovative manner; and
WHEREAS, over the past year alone, our city staff have:
• Oversaw the lending of over 1 million library materials; • Cleaned and treated 90+ miles of sewer lines;
• Repaired or replaced over 15,000 square feet of sidewalk; • Processed 5,800 employee personnel transactions;
• Facilitated the participation of over 14,000 individuals in a variety of classes, camps, and programs spanning arts, sciences, recreational activities and open space. • Maintained 32 parks and over 36,000 trees;
• Provided nearly 4,000 ambulance transports;
• Answered over 140,000 calls to the dispatch center, and received nearly 40,000 police calls for service;
• Installed over 23,400 electric Advanced Metering Infrastructure (AMI) meters; • Issued over 4,500 building and fire permits; and,
• Completed over 19,000 building inspections.

And much more, all with the professionalism we know and appreciate, day in and day out.

NOW, THEREFORE, I, Ed Lauing, the Mayor of the City of Palo Alto do hereby proclaim that May 4, 2025 to May 10, 2025, is Public Service Recognition Week. All citizens are encouraged to recognize the accomplishments and contributions of government employees at all levels — federal, state, county and city – and especially our City of Palo Alto employees.

Presented: May 5, 2025
Ed Lauing
Mayor
Item 1
Attachment A - Public
Service Recognition
Proclamation 2025

Item 1: Staff Report
Pg.
2 Packet Pg. 8 of 288

City Council
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Planning and Development Services
Meeting Date: May 5, 2025
Report #:2503-4436
TITLE
Proclamation Honoring Russ Reich for his Service to the City of Palo Alto

ATTACHMENTS
Attachment A: Proclamation Honoring Russ Reich for his Service to the City of Palo Alto APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 2
Item 2 Staff Report

Item 2: Staff Report
Pg.
1 Packet Pg. 9 of 288

EXPRESSING APPRECIATION TO RUSS REICH UPON HIS RETIREMENT

WHEREAS, Russ Reich began his career with the City of Palo Alto as an intern in 1999 and has provided exemplary service to the community throughout his 25-plus year career in Planning and Development Services; and

WHEREAS, Russ served as liaison to the Architectural Review Board for multiple terms and facilitated the ARB Design Awards program in 2010 and 2015; and

WHEREAS, Russ made a positive impact throughout the community having managed hundreds of planning entitlement applications including Single -Family Individual Review s, Architectural Review Board reviews , Zone Changes, Subdivisions, Conditional Use Permits, Site and Design Reviews, Planned Community Developments, Home Improvement Exceptions, Variances, and Temporary Use Permits; and

WHEREAS, Russ has received recognition by professional organizations for his work in tree preservation and for his contributions to the City’s R-1 Zoning Technical Manual; and

WHEREAS, Russ held a leadership role in the department and was involved in hiring and training planning staff as the Planning Manager at the Development Center and was known for having provided excellent customer service; and

WHEREAS, Russ was able to nimbly transition from Planning Manager to the Development Center Manager position early in the pandemic when the teams were working remotely and he was able to lead the Project Coordination Team through the transition from a paper format to an online digital permit review and issuance process; and

WHEREAS, Russ is commended as a mentor who has trained many new planners who have advanced to higher level roles; and has earned the respect of his colleagues through his personable nature, depth of knowledge, and ability to collaborate with individuals across the organization and will be greatly missed.

NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto hereby gratefully records and extends its sincere appreciation to Russ Reich for his dedication and excellent service rendered to the City.

PRESENTED: May 5, 2025

APPROVED:

______________________
Mayor Ed Lauing

______________________ ______________________
Vice Mayor Vicki Veenker Councilmember Pat Burt

______________________ ______________________
Councilmember George Lu Councilmember Julie Lythcott-Haims

______________________ ______________________
Councilmember Keith Reckdahl Councilmember Greer Stone

ATTEST:

______________________
City Clerk

APPROVED AS TO FORM:

______________________ ______________________
City Manager City Attorney

Proclamation

Item 2
Attachment A -
Proclamation Honoring
Russ Reich for his Service
to the City of Palo Alto

Item 2: Staff Report
Pg.
2 Packet Pg. 10 of 288

City Council
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Planning and Development Services
Meeting Date: May 5, 2025
Report #:2503-4420
TITLE
Proclamation of May 2025 as Affordable Housing Month

RECOMMENDATION
Staff recommend that the City Council proclaim the month of May as Affordable Housing Month in the City of Palo Alto.

BACKGROUND
Affordable Housing Month is a national observance in the United States that is typically held in the month of May each year. The event was established to raise awareness about the need for affordable housing and to recognize the important role that affordable housing plays in building strong, sustainable, and inclusive communities.

Affordable Housing Month typically includes a variety of activities and events, such as workshops, rallies, and community outreach efforts. The focus of these events is to raise awareness about the need for affordable housing, educate the public about the benefits of affordable housing, and advocate for policies and programs that support the development of more affordable housing options.

This year, the City is hosting an Affordable Housing Resources Fair on May 17, 2025, from 11:00 a.m. to 1:00 p.m. on City Hall King Plaza. The fair is primarily focused on resources for low- income households and provides information about affordable housing in Palo Alto, fair housing, tenant protections, and other housing services. Residents and stakeholders are encouraged to attend this event celebrating Affordable Housing Month in Palo Alto. More information on the event is available at: www.cityofpaloalto.org/housingfair.

ATTACHMENTS
Attachment A: Affordable Housing Month Proclamation
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
1 Packet Pg. 11 of 288

AFFORDABLE HOUSING MONTH

WHEREAS, safe and affordable housing is a basic human right and yet, each year, thousands of Silicon Valley families and individuals struggle to find an affordable home in this expensive housing market; and WHEREAS, the City Council adopted the 6th Cycle Housing Element that outlines how 6,086 new housing units can be accommodated within Palo Alto by 2031, and includes implementation programs to increase the number affordable housing units; and
WHEREAS, the City remains active in supporting affordable housing development and commits financial assistance for projects that include much needed lower-income units , including the recently-funded Charities Housing development at 3001 El Camino Real; and
WHEREAS, the City has implemented meaningful housing actions by identifying affordable housing redevelopment opportunities on City parking lots to be developed for affordable housing, creating a permanent source of affordable housing funding by dedicating a portion of the business tax revenue for affordable housing, crafting additional renter protections, and continued support of fair housing services; and WHEREAS, the City has implemented meaningful actions to help those experiencing homelessness in Palo Alto through making permanent its safe parking ordinance, piloting an outreach worker program, providing an overnight warming location, and providing funding and partnering to build an interim housing shelter on City - owned land; and
WHEREAS, the City actively pursues State and F ederal grant funds for affordable housing development, preservation, and rehabilitation; and
WHERAS, the City is hosting an Affordable Housing Resources Fair on Saturday, May 17, 2025, in King Plaza (in front of City Hall). More information on the event is available at: www.cityofpaloalto.org/housingfair ; and
WHEREAS, many organizations throughout Silicon Valley are dedicated to providing safe, stable permanent and affordable housing to all members of the community; these organizations along with local agencies and community members have organized Affordable Housing Month.

Proclamation
Item 3
Attachment A - Affordable
Housing Month
Proclamation

Item 3: Staff Report
Pg.
2 Packet Pg. 12 of 288

NOW, THEREFORE I, Ed Lauing, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim the month of May as Affordable Housing Month in the City of Palo Alto, to call upon our community to support affordable housing solutions and to recognize the successful efforts of the City of Palo Alto and its partners who seek to improve access to affordable housing in Palo Alto.

Presented: May 5, 2024

______________________________
Ed Lauing
Mayor
Item 3
Attachment A - Affordable
Housing Month
Proclamation

Item 3: Staff Report
Pg.
3 Packet Pg. 13 of 288

City Council
Staff Report
Report Type: STUDY SESSION (8:30 - 9:30 PM)
Lead Department: City Clerk
Meeting Date: May 5, 2025
Report #:2504-4579
TITLE
City Manager Transmittal of the Fiscal Year 2026 Proposed Operating and Capital Budgets This will be a late packet report published on May 1, 2025.

Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
1 Packet Pg. 14 of 288

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 5, 2025
Report #:2504-4516
TITLE
Approval of Minutes from April 14, 2025 and April 21, 2025 Meetings

RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.

ATTACHMENTS
Attachment A: April 14, 2025 Draft Action Minutes
Attachment B: April 21, 2025 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
1 Packet Pg. 15 of 288

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 4 ends

Regular Meeting
April 14, 2025
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.

Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:

Absent:

Special Orders of the Day

1. Proclamation Honoring National Public Safety Telecommunicators Week April 13 -19, 2025

NO ACTION

2. Proclamation Honoring National Animal Control Officer Appreciation Week April 13 -19, 2025

NO ACTION

3. Proclamation Celebrating César Chávez and Dolores Huerta

NO ACTION

Agenda Changes, Additions and Deletions

Public Comment

Item 7
Attachment A - April 14,
2025 Draft Action
Minutes

Item 7: Staff Report
Pg.
2 Packet Pg. 16 of 288

DRAFT ACTION MINUTES

Page 2 of 4 ends

City Council Meeting
Draft Action Minutes: 04/14/2025
Council Member Questions, Comments and Announcements

Consent Calendar
MOTION: Council member Lythcott-Haims moved, seconded by Council member Reckdahl to approve Agenda Item Numbers 4-10.

MOTION PASSED: 7-0

4. Approval of Professional Services Contract Number C25193356 with Martina Entriken in the Amount Not to Exceed $658,390 for a Preschool and Toddler Program for a Period of Five Years. CEQA Status - Not a Project.

5. Approval of Amendment No. 2 via Change Order No. 2 to Contract Number C22183580 with MP Nexlevel of California, Inc. in the Amount of $4,000,000 for a Total Not -to- Exceed Amount of $15,347,390, and Extending the Three -Year Term of the Contract for an Additional Four Months Through August 31, 2025 to Provide Substructure and Utility Trenching Construction Services for the Foothills Rebuild Wildfire Mitigation and Grid Modernization for Electrification Projects; CEQA Status: the Foothills Rebuild and Grid Modernization Project are Exempt Under CEQA Guidelines Sections 15302, 15303 and 15183

6. Approval of Contract Amendment Number 1 to Contract Number S22183286 with The Permanente Medical Group Inc in an Amount Not to Exceed $100,000 for Pre - employment and Other Occupation- Related Medical Services; CEQA Status – Not a Project.

7. Approval of Professional Services Contract No. C25191690 with InfoSend in an Amount Not to Exceed $2,344,573 to Provide Utilities Bill Print and Mailing Services for a Term of Five Years; CEQA Status - Not a Project.

8. Approval of Professional Services Contract Number C25191738 with Sedgwick Claims Management Services in an Amount Not to Exceed $612,840 for Administration of Workers Compensation Benefits through June 30, 2025; CEQA Status – Not a Project.

9. FIRST READING: Adoption of an Ordinance Setting the Regular Meeting Time of the Finance and Policy & Services Committees by Resolution or Ordinance (Palo Alto Municipal Code §§ 2.04.190 and 200); and Adoption of a Resolution Setting the Regular Meeting Times at 5:30 pm for Finance and 6:00 pm for Policy & Services; CEQA status – not a project.

10. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter

2.32 (Sales and Use Tax) and Chapter 4.10 (Solicitors, Peddlers, Pawnbrokers, Item 7
Attachment A - April 14,
2025 Draft Action
Minutes

Item 7: Staff Report
Pg.
3 Packet Pg. 17 of 288

DRAFT ACTION MINUTES

Page 3 of 4 ends

City Council Meeting
Draft Action Minutes: 04/14/2025
Secondhand Dealers, and Other Businesses Regulated by Police) of the Municipal Code to Delete Obsolete References to the California Board of Equalization and Replace Them with References to the California Department of Tax and Fee Administration (FIRST READING: March 24, 2025; PASSED: 6-0-1, Veenker absent)

City Manager Comments
Ed Shikada, City Manager

Action Items

11. Review and Provide Direction on a Preferred Option for a New Parking Structure and Reserved Space for Future Affordable Housing at 375 Hamilton Avenue and Direct Staff to Pursue Preliminary Design and Environmental Review for the New Downtown Parking Garage Capital Project (PE-15007) for the Preferred Option; CEQA Status - Not a Project MOTION: Vice Mayor Veenker moved, seconded by Council member Stone to direct staff to proceed with preliminary design and environmental review for Option 1a, a new 274 -space parking garage, featuring six levels of above -ground parking with a reserved area to allow for future construction of affordable housing on the site with separate access on Waverley Street.

MOTION PASSED: 5-2, Burt, Reckdahl no

12. PUBLIC HEARING/QUASI -JUDICIAL: 70 Encina Avenue [24PLN -00095]: Adopt an Ordinance Rezoning the Subject Property and an Adjacent Vacant Parcel to Planned Community/Planned Home Zoning and Adopt the Record of Land Use Action to Demolish a Surface Parking lot and to Construct a New Three -Story, 19,035 Square Foot Building with 10 Residential Condominium Units. CEQA Status - Streamlined Review in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency).

Zone District: CC (Community Commercial).

MOTION: Councilmember Lu moved, seconded by Councilmember Lythcott-Haims to:

1. Consider the CEQA Guidelines section 15183 checklist analyzing the project’s consistency with the Comprehensive Plan 2030 Environmental Impact Report (SCH#2014052101);

2. Approve an Ordinance (Attachment B) rezoning the subject site from Community Commercial to Planned Community/Planned Home Zoning; and Item 7
Attachment A - April 14,
2025 Draft Action
Minutes

Item 7: Staff Report
Pg.
4 Packet Pg. 18 of 288

DRAFT ACTION MINUTES

Page 4 of 4 ends

City Council Meeting
Draft Action Minutes: 04/14/2025

3. Approve the Record of Land Use Action (Attachment C) approving the proposed project, based on findings and subject to conditions of approval to the City Council.

MOTION PASSED: 7-0

13. FIRST READING: Adoption of an Ordinance Adding New Chapter 9.75 (Fair Chance in Housing) to Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Limit the Use of Criminal History Information in Rental Housing Decisions. CEQA Status - Exempt Under CEQA Guidelines Section 15061(b)(3).

MOTION: Councilmember Burt moved, seconded by Council member Reckdahl to refer this item to the Policy and Services Committee.

MOTION PASSED: 7-0

Adjournment: The meeting was adjourned at 10:18 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL

DRAFT ACTION MINUTES

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Regular Meeting
April 21, 2025
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.

Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:

Absent:

Special Orders of the Day

1. Recognizing Palo Alto Youth Who Have Received The President's Volunteer Service Award (PVSA) As Certified by Youth Community Service (YCS) Between Feb 16, 2024 – Feb 15, 2025

NO ACTION

2. Signing of a Friendship City Agreement between the City of Palo Alto and Narok, Kenya in Celebration of Palo Alto‘s First Friendship City

NO ACTION

Agenda Changes, Additions and Deletions

Public Comment

Council Member Questions, Comments and Announcements

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 04/21/2025
Study Session

3. Semi-Annual City Council Discussion with the Independent Police Auditor (IPA)

NO ACTION

Consent Calendar
MOTION: Council member Reckdahl moved, seconded by Council member Lu to approve Agenda Item Numbers 4-10.

MOTION PASSED: 7-0

4. Approval of Minutes from April 7, 2025 Meeting

5. Approval of Contract Amendment No. 2 to Contract No. C23185922 with Kittelson & Associates, INC. to Extend Term for an Additional Year of Service Through June 30, 2026 for professional consultant services for the City's Bicycle and Pedestrian Transportation Plan Update; CEQA status - exempt under- California Senate Bill 922 (2022), codified as Public Resources Code section 21080.20.

6. Approval of Amendment Number 1 to Contract Number S22184359 With Prime Actuarial Consulting, LLC dba Bickmore Actuarial, in the Amount of $27,000, for a new Total Not -to-Exceed Contract Amount of $67,500 for Actuarial Services Related to the Workers’ Compensation and the General Liability Programs and to Extend Term for an Additional Two Years; CEQA Status – Not a Project

7. Approval of Amendment No. 1 to the Cooperative Agreement with the Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project (WQ - 22001) to Reflect an Additional $2 Million in California Coastal Conservancy Grant Funds; CEQA Status – Exempt under Section 15133

8. Approval of Contract Amendment Number 2 to Contract Number C24190163 with Musson Theatrical to extend the contract time through March 2, 2026, with No Change in the Total Not- to Exceed Amount for $101,927 for the Refurbishing of the Stage Rigging System at Lucie Stern Community Theatre; CEQA status - categorically exempt.

9. Adoption of a Resolution Endorsing the Updated Safe Routes to School Consensus Statement and Approval of the Amended City/School Transportation Safety Committee Bylaws; CEQA Status – Not a Project.

10. Approval of a Surveillance Use Policy for Security Cameras in Council Chambers and Approval of Purchase of $4,886 for Security Cameras; CEQA status – not a project.

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City Council Meeting
Draft Action Minutes: 04/21/2025
City Manager Comments
Ed Shikada, City Manager

Action Items

11. Review and Authorize Initiation of Community Poll Number One Themes for the Cubberley Master Plan Project and Receive an Update on the Project Workplan; CEQA Status - the Master Plan will undergo CEQA review.

NO ACTION

12. Approval of Professional Service Contract Number C25192988 with Lloyd Consulting Group, LLC., in the Amount Not to Exceed $160,825 to Conduct a Comprehensive Turf Study for a Period of Six Months; CEQA Status – exempt under CEQA regulations 15262 and 15306.

MOTION: Councilmember Burt moved, seconded by Council member Lythcott-Haims to approve and authorize the City Manager or their designee to negotiate and execute a contract with a modified scope and budget not- to-exceed $160,825 with Lloyd Consulting Group, LLC, to provide a comprehensive turf study that compares synthetic , natural turf athletic fields , and additional research
necessary that would focus the work involved to specifically address the need for a turf replacement decision at El Camino Park anticipated in fiscal year 2026.

MOTION PASSED: 6-1, Lauing no

SUBSTITUTE MOTION: Mayor Lauing moved, seconded by Councilmember Lu to direct staff to modify and narrow the scope of work and return to Council.

SUBSTITUTE MOTION FAILED: 2-5, Burt, Stone, Lythcott-Haims, Reckdahl, Veenker no

Adjournment: The meeting was adjourned at 10:49 P.M.

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City Council Meeting
Draft Action Minutes: 04/21/2025

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: May 5, 2025
Report #:2504-4466
TITLE
2025 City Council Priority Objectives, and Committee Objectives and Workplans

RECOMMENDATION
Staff recommends that the City Council approve the 2025 City Council Priority Objectives, and Committee Objectives and Workplans

EXECUTIVE SUMMARY
The City of Palo Alto’s 2025 City Council Priority Objectives and associated Committee Workplans outline a comprehensive roadmap to advance the City’s core priorities throughout the calendar year. Following Council's adoption of the 2025 priorities—Economic Development & Retail Vibrancy; Climate Action and Adaptation & Natural Environment Protection; Implementing Housing Strategies for Social & Economic Balance; and Public Safety, Wellness & Belonging—staff has developed a set of 70 objectives to be implemented in alignment with these priorities.

This report reflects extensive City Council feedback from the March 17, 2025 meeting, resulting in a refined and actionable list of objectives. Each objective includes estimated completion timelines, crossover benefits across multiple priorities, and funding requirements, all of which will inform budget planning for FY 2026.

The report also includes updates to the Climate Action & Sustainability Ad Hoc Committee and the Cubberley Ad Hoc Committee Objectives and includes current workplans for both the Policy & Services Committee and the Finance Committee.

BACKGROUND
Following the City Council approval of its Priorities, staff developed and recommended for City Council approval a set of objectives to advance each priority throughout the calendar year. The 2025 Priorities are:

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•Economic Development & Retail Vibrancy
•Climate Action and Adaptation, & Natural Environment Protection •Implementing Housing Strategies for Social & Economic Balance •Public Safety, Wellness & Belonging
On March 17, 20251, the City Council completed its review of the proposed 2025 City Council Priority Objectives, including Committee Objectives and Workplans. This report incorporates the Council’s feedback and is recommended for final approval. Upon adoption, staff will define the scope and milestones for each objective and provide quarterly progress updates.

ANALYSIS
This report organizes the City Council’s feedback on the 2025 Priority Objectives, as well as Committee Objective and Workplans. A total of 70 objectives are being recommended for City Council approval, Attachment A includes the summary table with the following elements:

Carryforward/Revised/New- Objectives annotated by (C) are objectives that are carried over from the 2024 list. (R) are objectives from the 2024 list that may have a second phase to the project and have been revised to reflect 2025 goals. The number designation from the 2024 workplan is shown in parentheses. New Objectives (N) reflect a project that is new in 2025.

Objective Description- Summarizes the activity to be accomplished in calendar year 2025, and if needed, a brief sentence describing the project. Once approved, a more thorough description of the project and milestones will return to City Council at a later meeting.

Estimated Completion- Reflects the 2025 calendar quarter in which the Objective is expected to be completed, subject to change. Q1 is January-March, Q2 is April-June, Q3 is July- September, and Q4 is October-December.

City Council Priority Crossover- Identifies objectives that advance more than one City Council Priority.

Funding Needed- Reflects a project that requires additional resources (staffing, capital investment, or professional services) to achieve and complete the activity beyond current budgeted levels. $ - up to 50K, $$ - 51-400K, $$$ - 500K+. Additional resources will be considered for inclusion in the 2025-26 annual budget.
1 March 17, 2025 City Council Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=7574&meetingTemplateType=2&comp iledMeetingDocumentId=13521
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ECONOMIC DEVELOPMENT AND RETAIL VIBRANCY
Objective: (Formerly Row 10) Enhance partnerships with private-sector stakeholders. Meet regularly with businesses, brokers, property owners, and other private-sector partners to shape, inform, and enhance economic development efforts. (10)
Council Feedback: This objective reflects ongoing core work, recommend removing or re- writing to reflect a specific intention.

Staff Response: Objective has been removed from the list. The Retail Committee has designated committee members to serve as liaisons to various local business groups.

Objective: ED6. Council approval of funding to continue Downtown cleanliness enhancements and other medium-term investments. Include necessary proposals and budget appropriations as part of the development of the FY 2026 Operating Budget to continue enhanced Downtown Cleanliness enhancements and other medium-term investments such as a Mobility Hub.

City Council Feedback: Concrete action should be placed in reactivating the intermodal center and primarily the station building in recognition of future partnership with Valley Transportation Authority (VTA).

Staff Response: Objective now reflects investing in the Mobility Hub as a medium-term enhancement in the Downtown area.

Objective: ED 8. Council approval of a final signage plan for California Avenue and funding appropriations. Review the signage plan for California Avenue with the Architectural Review Board (ARB), incorporate feedback, and seek Council approval to implement the plan. (2) City Council Feedback: Identify concrete actions such as milestones and completion dates.

Staff Response: The near-term signage improvements for California Avenue include replacement of El Camino Real (ECR) and Oregon Expressway signs to be completed by calendar year Q3. Longer-term improvements will include formulating a comprehensive sign program, with a proposal to be developed and reviewed by Q3, and built into Fiscal Year 2027 CIP budget cycle, for implementation in Q3 of 2026.

Objective: ED 12. Refine destination marketing efforts and enhance Palo Alto’s international reputation. Meet with hospitality partners and incubator/accelerators to assess willingness to partner with the City on destination marketing efforts and propose next steps, including necessary appropriation actions, to City Council.

City Council Feedback: Palo Alto is internationally known for incubator and innovative businesses, we should be capitalizing on our reputation instead of losing it.

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Staff Response: The objective has been edited to capture City Council feedback to recognize our incubator/accelerators partners and the City of Palo Alto’s international reputation on business innovation.

CLIMATE ACTION AND ADAPTATION, & NATURAL ENVIRONMENT PROTECTION New Objective: CA 22. Complete implementation of the Reliability and Resiliency Strategic Plan, including Strategy 4 – conducting a cost/benefit analysis of flexible energy resources such as battery storage and microgrids (including evaluation of the airport microgrid), and Strategy 5 – recommending potential programs for Council consideration.

City Council Feedback: Initiate work on assessing how to establish a microgrid and battery storage system in Palo Alto.

Staff Response: Staff has added a new objective to address City Council feedback.

Objective: CA 23. Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals, including engaging with Palo Alto Student Climate Coalition on its Heat Mapping project for possible inclusion.

City Council Feedback: Keep objective high level, consider removing Palo Alto Student Coalition.

Staff Response: Objective has been edited with recommended edits.

New Objective: CA 25. Identify locations and design concepts for additional east-west bicycle and pedestrian crossings of the Caltrain railroad tracks in the southern part of the city.

Council Feedback: There is a missing objective on the East-West bike/pedestrian grade crossing project, would like to see it listed as recommendations will come back to City Council this year.

Staff Response: A new objective has been added to incorporate recommendations from the South Palo Alto Bike/Pedestrian Connectivity project, which will be reviewed by the City Council. By Q4 2025, community engagement efforts will focus on identifying preferred crossing locations, design options, and related network improvements for east-west bicycle and pedestrian grade crossings. A formal report summarizing these recommendations will be publicly circulated and presented for City Council adoption in 2026. Subsequent steps will include pursuing grant funding for final design and construction.

IMPLEMENTING HOUSING STRATEGIES FOR SOCIAL & ECONOMIC BALANCE Objective: IHS 48. Present to Council the Downtown Housing Plan Community Assessment report and receive Council direction on draft housing plan scenarios. Continue advancing the plan development and public engagement strategy to prepare draft housing plan and environmental review. (36)
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City Council Feedback: Remove Ongoing designation from the estimated completion date and add 2025 milestones.

Staff Response: The above objective will be completed by Q4 of 2025. Staff plans to present the City Council with the Community Assessment in Q2, and will continue policy development and community engagement efforts through Q4 of 2025.

Objective: IHS 49. Initiate the San Antonio Road Area Plan. Begin data gathering, document review, implementing a community outreach and engagement strategy, check-in meetings with appointed and elected officials, and review by the City Council of a community assessment report and receive updated project direction, consistent with Housing Element Program 6.6 C. (40)
City Council Feedback: Remove ongoing designation for estimated completion date and add milestones for the above objective. Additionally, planning for future infrastructure needs such as bike lanes and adding park land needs to start now and should be added to the objective.

Staff Response: The 2025 milestones for the above objective include securing professional services to conduct community outreach and as part of that engagement, form a community advisory committee by Q2. Community outreach will commence in Q3 and conclude by Q4.

To the extent feasible and in a manner that respects the public engagement aspects of the area planning initiative, staff will engage with prominent property owners and key stakeholders on future infrastructure planning, including exploring any short-term needs to support future multi-modal improvements in the project area.

Objective: IHS 50. Advance affordable housing project on Downtown surface parking lot (Lot T). Enter into an exclusive negotiating agreement with Alta Housing; receive an updated project concept design & prescreening application for Council review; receive formal planning entitlement application, consistent with Housing Element Program 1.4 A. (8) City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: 2025 milestones include an exclusive negotiating agreement with Alta Housing to Council in Q2. Revised project concept design based on January 2025 Council direction, with pre-screening, if applicable, for Council consideration in Q4.

Objective: IHS 53. Work with the Santa Clara County Housing Authority to determine next steps to maintain affordability and improve conditions at Buena Vista Mobile Park. (56) City Council Feedback: How will the project move forward? Identify the milestones.

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options and approach. Work on this project will be reported quarterly and as necessary, with activities concluding in Q4.

Objective: IHS 54. Update development impact fees for public safety, government facilities, housing, transportation, parks, and community services. Conduct a nexus and feasibility study to ensure housing remains viable. Consider potential policy to waive impact fees associated with for low-income inclusionary units with when 20% of the units are deed restricted. (Housing Element Programs 2.1B; 3.1 B&C)
City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: In Q2, a Request for Proposal (RFP) will be issued to conduct a feasibility study on development impact fees and ensure housing production remains viable. Explore solutions that ensure housing production viability by considering waiving fees for low-income units. The project will begin in Q3.

New Objective: IHS 55. Present options to address homelessness impacts, particularly relating to individuals living in vehicles, to Policy & Services Committee for prioritization. Identify feasible regulatory approaches to manage the use of public space and policy solutions to expand RV safe parking. Present options to the Policy & Services Committee for consideration and prioritization.

City Council Feedback: None
Staff Response: New objective has been added to address homelessness impacts, in particular, solutions to manage RV safe parking originally discussed during the February 10th City Council Study Session.

New Objective: IHS 56. Identify and evaluate Organize an initial review of sources and methods to raise funding to support new affordable housing production for future evaluation. Conduct research to identify and evaluate sources and methods. Present findings Work with Finance Committee to develop recommendations for City Council direction.

City Council Feedback: Identifying funding strategies is a key strategy to advance affordable housing production in the city. Add back objective “n” from the Staff Not Recommended list.

Staff Response: Objective n has been added to the 2025 Priority and Objectives list and staff has also added it to the Finance Committee Workplan.

PUBLIC SAFETY, WELLNESS & BELONGING
Objective: PS 62. Implement the 2024-2025 Equity Wellness & Belonging Action Plan.

Complete the 28 action items in the action plan in collaboration with partners.

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City Council Feedback: Edit title of the action plan while continuing to implement the strategies within the plan.

Staff Response: The 2024-2025 Equity Action plan will be renamed to the 2024-2025 Wellness & Belonging Action Plan.

Objective: PS. 63 Implement New Expanded CSD Recreation Special Events Workplan.

Approve and implement the Workplan which expands Community Special Events that foster togetherness, belonging and celebrate the rich diversity of our community (60) City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: In Q1, City Council reviewed and provided feedback on the Special Events Workplan. Staff has begun implementing the Workplan and will be providing quarterly updates, concluding in Q4 of 2025.

Objective: (Formerly Row 67) Support visible police presence by maintaining full police officer staffing through continuous recruiting and retention efforts. Identify and plan for anticipated vacancies and retirements, hold monthly testing and interview sessions and timely background checks to maintain a vacancy of less than 5%. (67)
City Council Feedback: This objective is “business as usual,” the Police Department should continue efforts to reduce officer vacancies but does not need to be reflected on the list of 2025 Priority Objectives.

Staff Response: Objective has been removed.

Objective: PS 64. Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease SFO noise impacts on Palo Alto. (79)
City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: Estimated completion date has been updated to Q4, staff will continue to provide quarterly updates on progress.

Objective: PS 67. Enhance and Expand Inclusive Programs and Services. Enhance services to support individuals with disabilities seeking accommodation support, expand community partnerships that serve the disability community, and implement new therapeutic recreation programs
City Council Feedback: Update objective with concrete milestones and estimated completion dates.

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Staff Response: Q1 Enhanced accommodation request process for community, partnered with local organization to expand inclusive programs and events including Magical Bridge and Community Advisory Committee for Special Education in Palo Alto (CAC). Q2 Launch City of Palo Alto Therapeutic Recreation programs that foster emotional and social connection, as well as physical movement. Q3 Implement a new summer aide staff position to support our expansive and diverse summer camp programs. Q4 Continue to support community partnerships, facilitate City sponsored Therapeutic Recreation programs, and provide accommodation support for the community.

Objective: PS 68. Support Community Mental Health. Provide support for all ages through community partnerships, programs, and initiatives. (65) City Council Feedback: Update objective with concrete milestones and estimated completion dates. Consider adding a partnership with the Jed Foundation.

Staff Response: 2025 milestones under this objective will include that by Q4, the City of Palo Alto and Palo Alto School District further refine the scope with stakeholders for Council discussion and potential direction and for continued collaboration with the School District.

Objective: PS 69. Enhance safety and improve quality of life in commercial areas by reducing criminal activity through business engagement and the deployment of officers and technology. Establish a Business Watch program to enhance collaboration with businesses and assign two officers at a minimum to patrol high traffic commercial areas.

City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: Engagement with business owners to establish a Business Watch Program will be initiated in early 2025 and implemented by Q4 of 2025.

Objective: PS 70. Initiate an update to the City’s seismic hazards ordinance. Conduct an assessment of previous study, update potentially eligible buildings, and begin work on seismic hazard identify and mitigation ordinance. (75)
City Council Feedback: Update objective with concrete milestones and estimated completion dates.

Staff Response: Milestones for the update of the Seismic Hazards Ordinance will include the update of the eligible buildings list (Task A) from the previous study and present findings to the City Council by Q3.

COMMITTEE WORKPLANS AND OBJECTIVES
In addition to reviewing 2025 Priority Objectives, the City Council also reviewed Committee Objectives (Attachment B), Policy & Services Workplan (Attachment C), and Finance Committee Workplan (Attachment D).

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Climate Action & Sustainability Ad Hoc Committee
The City Council provided feedback on the Climate Action & Sustainability Ad Hoc Committee objectives, requesting that it reflect more of the work on the sustainability aspect of the Climate Action & Sustainability Plan. The Ad Hoc Committee’s objective has been edited as follows:

The Climate Action & Sustainability Committee will support implementation of the Three-Year Sustainability and Climate Action Plan (S/CAP) Workplan and the 2025 Council Priority Objectives for the Climate Action & Adaptation, and Natural Environment Council priority. The Committee will also discuss and provide recommendations on S/CAP implementation strategy leading to Council approval and the development of the upcoming 2026-2027 S/CAP Workplan, including consideration of appropriate actions toward the 2030 Carbon Neutrality goal.

Recommendations for funding S/CAP programs through the budget process will be made by the Utility Advisory Commission (UAC) and Finance Committee based on priorities established by the Climate Action & Sustainability Committee.

Cubberley Ad Hoc Committee
The Council reverted the Cubberley Committee to a non-Brown Act Ad Hoc at the March 10th City Council meeting2. As a non-Brown Act body, the Cubberley Ad Hoc must work on a set subject and timeframe. Staff recommends the following purpose statement.

Cubberley Ad Hoc Committee (as a non-Brown Act body) - The Cubberley Ad Hoc will review and advise staff on efforts related to polling and development of a ballot measure that will successfully receive voter support in 2026. Efforts include polling, financial and revenue forecasting, master planning, and community outreach to complete the Master Plan and place a measure on the November 2026 ballot.

Policy & Services Committee Workplan
Committee workplans will continue to evolve as City Council advances objectives within each Priority. Each workplan also reflects City Council referrals throughout the year on other important City projects. Staff inadvertently left out a referral on gas powered leaf blowers. The following City Council referral will be retained for future consideration of the Policy & Services Committee:
•Refer to Policy & Services Committee discussion considering a ban on gas powered leaf blowers citywide and evaluate replacement of internal combustion engines for residences and commercial properties maintenance based on available replacement 2 March 10, 2025, City Council Action Minutes
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technologies. Discussion should also address evaluation of decibel levels for leaf blower equipment.

FISCAL/RESOURCE IMPACT
City Council approval of Priority Objectives does not have an immediate fiscal impact; however, resources will need to be allocated to implement Council Priorities. Opportunities to allocate resources to projects include the FY 2026 annual budget process, with adoption scheduled for June 16, 2025. In addition, the City Council may amend the budget throughout the year.

STAKEHOLDER ENGAGEMENT
City Council, community and stakeholder engagement is a key area of focus that is woven into the workplans to implement the proposed City Council objectives contained in this report.

The City uses the International Association for Public Participation (IAP2) as a guide to structure community participation and align that participation with the type of input or feedback needed based on the project/issue. Workplan engagement typically fit within these general focus areas:

Inform: Fact sheets, webpages, blog posts, information sessions, open houses, frequently asked questions, community briefings, and website feedback forms Consult & Involve: Surveys, focus groups, questions and answer sessions, office hours, public meetings like community meetings, town halls, panel discussions, workshops, and polling Collaborate & Empower: Working groups, ad hoc groups, feedback groups, boards, commissions and committee meetings, community advisory panels, advisory groups, digital engagement platforms, and voter ballot measures.

ENVIRONMENTAL REVIEW
City Council action on this item is not a project as defined by CEQA because the City Council discussion on 2025 Priority and Committee Objectives are a continuing administrative or maintenance activity. CEQA Guidelines section 15378 (b)(2).

ATTACHMENTS
Attachment A: 2025 City Council Priority Objectives
Attachment B: 2025 Committee Objectives
Attachment C: 2025 Policy & Services Committee Workplan Attachment D: 2025 Finance Committee Workplan
APPROVED BY:

Ed Shikada, City Manager
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ATTACHMENT A
2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
Economic Development & Retail Vibrancy (ED)
1 X X R Council approval of outdoor activation guidelines for California Avenue. Council approval of outdoor activity guidelines informed by continued engagement with stakeholders on a refined priorities and recommendations and Initiate implementation. (2) X
X2
3 X
X
R
R
Resume work on new parking structure in downtown core (Lot D). Staff will present parking garage design options to City Council for selection. (8) Complete build‐out of fiber‐to‐the‐premises (FTTP) pilot Phase 1 with grid modernization. Complete building out of a reliable and high‐speed municipal fiber service in a pilot area and work to establish internet service provider operations including necessary business tools such rate setting, billing and operations software to roll out services in the initial build. (9) X
4 5
X
X
R Council consideration of an ordinance that expands retail opportunities and promotes retail resiliency. Consider further refinement to retail and retail‐like definition and explore changes to retail preservation ordinance. (12) X
XN Council consideration of an ordinance restoring subjective wireless communication facility regulations. Hold a public hearing on a draft ordinance implementing the City Council's direction from late 2024 to eliminate objective standards for the placement of wireless antennas within the public right of way on street light or utility poles.

X
X
R Enhance partnerships with private‐sector stakeholders. Meet regularly with businesses, brokers, property owners, and other private‐sector partners to shape, inform, and enhance economic development efforts . (10) X
6 X N Council approval of funding to continue Downtown cleanliness enhancements and other medium‐term investments. Include necessary proposals and budget appropriations as part of the development of the FY 2026 Operating Budget to continue enhanced Downtown Cleanliness enhancements and other medium‐term investments such as a Mobility Hub .

X $$
7 8
X
X
X
X
X
X
R
R
Council approval of Ramona Street design and funding appropriations. Engage stakeholders to develop design proposals for Car‐Free Ramona Street and present to Council for necessary funding appropriations to implement initial phase(s). (4) X
X
X
$$
$$$
$$$
$$
Council approval of a final signage plan for California Avenue and funding appropriations. Review the signage plan for California Avenue with the Architectural Review Board (ARB), incorporate feedback, and seek Council approval to implement the plan. (2) 9 R Council approval of a design option for California Ave. Engage stakeholders to refine alternative street designs for California Avenue and present them to Council for discussion and action, including funding appropriations to pursue a street design. (3) 10 11
12 X
X
N
N
N
Begin feasibility analysis of Assessment District for University Avenue Streetscape. Conduct analysis to determine practicality of an assessment district or similarly funding strategy as a funding mechanism for capital enhancements to University Avenue Streetscape.

X
X
X
Propose and implement outdoor activation guidelines for Car‐Free Ramona Street. Initiate implementation of Council approved outdoor activity guidelines informed by continued engagement with stakeholders on a refined priorities and recommendations. $$
Refine destination marketing efforts and enhance Palo Alto’s international reputation. Meet with hospitality partners and incubator/accelerators to assess $$ willingness to partner with the City on destination marketing efforts and propose next steps, including necessary appropriation actions, to City Council.

Climate Action and Adaptation, & Natural Environment Protection (CA) 13 14
X
X
X
X
R
R
Council Adoption of the Safe Streets for All (SS4A) Safety Action Plan. Informed by feedback from the Policy & Services Committee, bring forward a Safety Action Plan providing a roadmap for eliminating traffic deaths and severe injuries through the reduction of vehicle miles traveled enabling staff to seek grant funding for implementation. (14)
X
XBegin construction of the Newell Road Bridge Replacement project. Award of a construction contract for the replacement of Newell Road Bridge in time to begin construction taking advantage of the 2025 in‐channel construction season. (32)

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ATTACHMENT A
2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
15 16
X
X
C
R
Complete construction of initial pilot area of electric grid modernization. Project will increase electrical capacity and reliability in initial pilot area bounded by Louis, Amarillo, 101, & Embarcadero about 1,200 homes; once completed, staff will continue the grid upgrades to the "Phase 1" area which impacts approx 6,000 homes. (16)
X
X
X
Begin construction of Hamilton Avenue storm drain system capacity upgrades project. Prioritization of the Hamilton Avenue project from the list of 2017 ballot measure priority projects will increase the ability of the storm drain system to convey water in the event of a San Francisquito Creek overflow. (31) X
17 18
19 X
X
X
C
C
R
Council consideration of an ordinance implementing updated Stream/Creek Corridor Setback requirements. (34) Council consideration of an ordinance implementing Bird Safe Glass & Wildlife Light Pollution Protections standards. (35) Council Adoption of the 2025 Bicycle and Pedestrian Transportation Plan (BPTP). Consideration of the BPTP effort informed by stakeholder engagement and review and feedback from the PTC for City Council adoption. (15) X
X
X
20 21
22 X
X
X
R
N
N
Develop and begin implementing a City Facility Electrification Plan. Building on the citywide Facilities Assessment, create a multi‐year plan to begin replacing fossil fuel use in City buildings in alignment with S/CAP goals, and begin implementing through the Capital Improvement Program. (19) X
X
X
Develop an updated Regional Water Quality Control Plant Biosolids Facility Plan. Complete initial work to develop plan, including consideration of PFAS pollutants and the Measure E site, and review with a Council committee in advance of Council acceptance of the plan in late 2025 or early 2026.

Complete implementation of the Reliability and Resiliency Strategic Plan, including Strategy 4 – conducting a cost/benefit analysis of flexible energy resources such as battery storage and microgrids (including evaluation of the airport microgrid), and Strategy 5 – recommending potential programs for Council consideration.

Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals, including engaging with Palo Alto Student Climate Coalition on its Heat Mapping project for possible inclusion. 23 24
X
X
N
R
X
XX Refine Grade Separation Design Alternatives per Council Direction and Conduct Outreach to Support Rail Committee Review of Locally Preferred Alternatives.

Review advanced alternatives to minimize right of way impacts and improve traffic circulation, conduct outreach, and develop conceptual plans (15% design) for each of the three crossings. (30)
25 26
27 28
29 30
31 X
X
X
X
X
X
X
X
X
X
N
C
R
N
C
R
C
Identify locations and design concepts for additional east‐west bicycle and pedestrian crossings of the Caltrain railroad tracks in the southern part of the city. X X
X
X
X
Advocate for the San Francisquito Creek Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved. (31) Begin development of a Regional Shoreline Adaptation Plan meeting new standards approved by BCDC. Engage with neighboring cities for potential partnership and review status with the City Council. (33)
Initiate Preliminary Engineering and Environmental Clearance Work for Quarry Road Extension in Partnership with Stanford University, Caltrans, & VTA.

Complete deployment of 65,000 residential Advanced Metering Infrastructure (AMI) meters by end of FY 2025 and begin deployment of commercial AMI meters. (13)
Complete E‐Mobility Strategic Plan for Council acceptance. Develop, approve and implement the Plan which reflects feedback on strategies reviewed by the Council Ad Hoc Climate Protection Committee and its Working Group. (21) X
X
$
X Implement plan for phaseout of leaded fuel at Palo Alto Airport. With unleaded fuel now available at the airport, implement plan to conduct lead monitoring, encourage and track use of the fuel, explore potentially subsidizing the cost of unleaded fuel, and develop updated lease requirements to promote unleaded fuel . (77)
Share preliminary analysis of strategies for a physical and financial transition of the gas utility to relevant policymakers and stakeholders. Utilize initial subject matter expert work that developed a minimum future gas grid need for system retirement to analyze alternatives for scaling down the gas distribution system. (17) X
X
$$
32 33
X
X
R $$
$$N Present an ordinance to Council enacting the 2026 California Building Standards Code update, including the California Green Building Standards Code; submit to the California Building Standards Commission for approval.

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Attachment A - 2025 Council Priority
Objectives

Item 8: Staff Report
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ATTACHMENT A
2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
34 35
X
X
R
R
Council approval for Phase 2 (full service program) of the Advanced Whole Home Electrification Pilot Program and begin implementation. (19) X X
$$$
Develop an Advanced Commercial Rooftop HVAC Pilot Program proposal and review with the Climate Action and Sustainability Ad Hoc Committee for recommendation to Council. (20)
$$$
36 37
X N
R
Propose an updated multifamily EV charger program (EV 2.0) for Council approval. X $$$ Implementing Housing Strategies for Social & Economic Balance (IHS) X Prepare an ordinance for Council review expanding the housing focus area. Increase housing development potential along El Camino Real and consideration of an X exemption from payment of development impact fees for inclusionary units under certain circumstances, consistent with Housing Element Program 3.4 E. (41) 38 39
40 41
42 43
44 X
X
X
X
X
X
X
C
N
C
R
R
R
R
Present to Council an ordinance updating the City’s housing incentive program. Increase housing development potential and expand provisions to multi‐family zoning and other commercial districts in accordance with Housing Element Program 3.4 D. (46) X
XPrepare an update to the City's accessory dwelling unit ordinance. Update local implementation regulations to respond to changes in State Law, consistency with the State Housing and Community Department's 2025 ADU Handbook and address applicable deficiencies identified in HCD's comment letter.

Partner with Santa Clara County Housing Authority to achieve construction timeline milestones for the Palo Alto Homekey project (which will provide transitional housing and services for unhoused residents). (51) X
X
X
Present a renter protection fair chance ordinance to Council. Present findings of an analysis and policy recommendations in the form of a draft ordinance to reduce barriers to housing by individuals with criminal records, consistent with Housing Element Program 6.6 I. (54) Report out on initial data from the rental registry program and project implementation; receive feedback and recommendations for next steps. (57) Present to Council an analysis related to anti‐rent gouging. Consistent with prior Council direction, examine implications of a possible ordinance from a legal, policy and anticipated resource demand perspectives; receive direction on next steps. (55) X
XExtend for one year or codify R1/SB 9 interim ordinance. Establish objective development standards and increases the maximum floor area for SB 9 units from 800 to 1200 square feet consistent with Housing Element Program 6.3A; consider implications of similar objective standards for R1 and SB 9 projects relative to the City’s Individual Review Program. (45)
45 46
X
X
N
N
Initiate evaluation of South of Forest Area Coordinated Area Plan (SOFA) development standards. Review and explore options to amend the coordinated area plan with the intent to replace subjective development standards with objective standards consistent with Housing Element Program 3.7.

X
XIdentify different housing typology options for the one‐acre site near Matadero Creek. Use grant funded technical analysis to consider housing options for a future affordable housing development on land to be dedicated to the City from the 2023 Sobrato/City Development Agreement; present findings and receive direction from Council.
47 X N Prepare the Community Development Block Grant (CDBG) 5‐Year Consolidated Plan and Annual Action Plan. The Quinquennial update helps jurisdictions to assess affordable housing and community development needs and market conditions to make data‐driven, place‐based investment decisions when distributing federal CDBG grant funds.

X
48 49
X
X
R
R
Present to Council the Downtown Housing Plan Community Assessment report and receive Council direction on draft housing plan scenarios. Continue advancing the plan development and public engagement strategy to prepare draft housing plan and environmental review. (36) Initiate the San Antonio Road Area Plan. Begin data gathering, document review, implementing a community outreach and engagement strategy, check‐in meetings with appointed and elected officials, and review by the City Council of a community assessment report and receive updated project direction, consistent with Housing Element Program 6.6 C. (40)
Advance affordable housing project on Downtown surface parking lot (Lot T). Enter into an exclusive negotiating agreement with Alta Housing; receive an updated project concept design & prescreening application for Council review; receive formal planning entitlement application, consistent with Housing Element Program 1.4 A. (8)
X
XX
X
X X
50 X R X

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Objectives

Item 8: Staff Report
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ATTACHMENT A
2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
51 52
53 X
X
X
R
R
C
Present an ordinance to Council that supports innovative housing structures. Creates zoning incentives or update development standards to support various housing typologies, including micro‐units, intergenerational housing, aging adults, students and lower‐income units, consistent with Housing Element Program 6.5. (48)
Present findings to Council on a study that explores code amendments reducing commercial floor area and possible extension of Downtown in‐lieu parking program to residential development: Evaluate opportunities that make multi‐family housing an attractive alternative to commercial office development, consistent with Housing Element Program 3.9. (50)
Work with the Santa Clara County Housing Authority to determine next steps to maintain affordability and improve conditions at Buena Vista Mobile Park. (56) Meet with Housing Authority regularly to identify feasible next steps. Review financing approach and options. Update Council on identified, proposed next steps and approach.

X
X
X
$$
X
X
$$
$X
X54 X X N Update development impact fees for public safety, government facilities, housing, transportation, parks, and community services. Conduct a nexus and feasibility study to ensure housing remains viable. Consider potential policy to waive impact fees associated with for low‐income inclusionary units with when 20% of the units are deed restricted. (Housing Element Programs 2.1B; 3.1 B&C) (Housing Element Programs 2.1B; 3.1 B&C) X $$
55 56
X
X
X N
N
Present options to address homelessness impacts, particularly relating to individuals living in vehicles, to Policy & Services Committee for prioritization. Identify feasible (1) regulatory approaches to manage the use of public space and (2) policy solutions to expand RV safe parking. Present options to P&S for consideration and prioritization. X
Initiate the evaluation Organize an initial review of sources and methods to raise funding to support new affordable housing production for future evaluation. X $ Conduct research to identify and evaluate sources and methods. Work with Finance Committee to develop recommendations for City Council.

Public Safety, Wellness & Belonging (PS)
57 58
X
X
C
C
Open the new Public Safety Building for daily Police, OES, and Fire services. Complete construction, move‐in of departments, and a ribbon‐cutting event to commemorate the official availability of public safety services from the facility for all. (72) X X
Council to adopt the updated Foothills Fire Management Plan and Community Wildfire Protection Plan. Plan to reflect alignment with Santa Clara County and other agencies and entities to address early warning technology, planning and procedural elements and risk mitigation. (71) X
59 60
61 X
X
X
C
N
R
Council approval of construction contract for Fire Station No. 4 Replacement project and initiation of construction. (73) X XActivate a fire engine at Fire Station 4. Augment staffing at Fire Station 4 to deploy either ambulance or fire engine response.

Develop Master Plan for Cubberley site. Complete a master plan by December 2025 for 15 acres anticipated to be purchased from PAUSD pending a successful bond measure in November 2026 and begin community polling to inform the development of a ballot measure for voter consideration. (61) X
62 63
X
X
N
R
Implement the 2024‐2025 Equity Wellness & Belonging Action Plan. Complete the 28 action items in the action plan in collaboration with partners. X XImplement New Expanded CSD Recreation Special Events Workplan. Approve and implement the Workplan which expands Community Special Events that foster togetherness, belonging and celebrate the rich diversity of our community (60) X R Support visible police presence by maintaining full police officer staffing through continuous recruiting and retention efforts. Identify and plan for anticipated vacancies and retirements, hold monthly testing and interview sessions and timely background checks to maintain a vacancy of less than 5%. (67) Ongoing
64 65
66 X
X
X
C
R
C
Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease SFO noise impacts on Palo Alto. (79)
X
Open 445 Bryant Street Community Center. Complete construction and any necessary partnership agreements to begin La Comida Senior Lunch Program at the facility by end of July, 2025; plan further work for general community center operations concurrently. (64) X
X
$$
$$Council Approval of Quiet Zone Concept Plans at Churchill Ave, Meadow Drive, and Charleston Rd Rail Crossings. (76)

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Objectives

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ATTACHMENT A
2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
67 X N Enhance and Expand Inclusive Programs and Services. Enhance services to support individuals with disabilities seeking accommodation support, expand X $ community partnerships that serve the disability community, and implement new therapeutic recreation programs 68 69
X
X
R
N
Support Community Mental Health. Provide support for all ages through community partnerships, programs, and initiatives. (65) Enhance safety and improve quality of life in commercial areas by reducing criminal activity through business engagement and the deployment of officers and technology. Establish a Business Watch program to enhance collaboration with businesses and assign two officers at a minimum to patrol high traffic commercial areas.

X
X
$
$$X
70 X R Initiate an update to the City’s seismic hazards ordinance. Conduct an assessment of previous study, update potentially eligible buildings, and begin work on X $$ seismic hazard identify and mitigation ordinance. (75)
$ ‐ up to 50K; $$ ‐ 51‐400K, $$$ ‐ 500K+
(C) are objectives that are carried over from the 2024 list, (R) are objectives from the 2024 list that may have a second phase to the project and have been revised to reflect 2025 goals, (N) reflect a project that is new in 2025

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Objectives

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ATTACHMENT B
2025 Committee Objectives
And meeting schedules
Rail Ad Hoc Committee
To meet every third Tuesday of every other month
The Rail Committee reviews the projects and provides recommendations to the City Council based on the Rail Guiding principles adopted by the City Council (August 8, 2022). The projects include: the grade separations and safety improvements at existing crossings, additional east-west bicycle and pedestrian crossings, and quiet zone improvements. Rail committee will review and advance projects for Council approval.

With the exception of bicycle and pedestrian railway crossings, all matters related to cycling and pedestrians such as the Bicycle Pedestrian Transportation Plan (BPTP) will be reviewed by the Policy & Services Committee for recommendations to the full City Council.

Cubberley Ad Hoc Committee
Meets as needed
Cubberley Ad Hoc Committee (as a non-Brown Act body) - The Cubberley Ad Hoc will review and advise staff on efforts related to polling and development of a ballot measure that will successfully receive voter support in 2026. Efforts include polling, financial and revenue forecasting, master planning, and community outreach to complete the Master Plan and place a measure on the November 2026 ballot.

The Cubberley Ad Hoc will ensure the City Council’s vision is reflected through the master plan process and serve as the Council ambassador for engagement with the community and building community support for development for a new community center at the Cubberley site. This includes making recommendations to the Council on the future operating model (e.g. services available, approach to fees & charges, space allocation) and master plan that will successfully receive voter support in 2026.

Coordination with PAUSD on Cubberley will occur through this committee rather than CSLC. Operations, funding, and ballot measure work (including polling) may be heard by the Finance Committee rather than the Cubberley Ad Hoc for recommendations to the full City Council.

Retail Ad Hoc Committee
To meet on the third Wednesday of every other month
The retail committee will provide a regular forum for business and community stakeholders to engage with Council members on implementation of the City’s economic development strategy. The retail committee will make recommendations to the City Council on economic development and retail vibrancy efforts, such as additional business support, proposed University and California Avenue improvements, and citywide retail zoning code changes.

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Committee Objectives

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ATTACHMENT B
Climate Action & Sustainability Ad Hoc Committee
To meet monthly
The Climate Action & Sustainability Committee will support implementation of the Climate Action workplan items of the Three-Year Sustainability and Climate Action Plan (S/CAP) Workplan and the 2025 Council Priority Objectives for the Climate Action & Adaptation, and Natural Environment Council priority. The Committee will also discuss and provide input recommendations on S/CAP implementation strategy leading to Council approval and the development of the Climate Action sections of the upcoming 2026-2027 S/CAP Workplan, including consideration of appropriate actions toward the 2030 Carbon Neutrality goal.

Implementation of the Reliability and Resiliency Strategic Plan will continue to be reviewed primarily by the Utilities Advisory Commission (UAC), and rRecommendations for funding S/CAP programs through the budget process will be made by the UAC and Finance Committee based on priorities established by the Climate Action & Sustainability Committee.

Council Appointed Officers Committee
Meets as needed
The CAO Committee meets on an as-needed schedule to address issues that Council has referred to the Committee related to Council's four direct appointees: the City Manager, City Attorney, City Clerk and City Auditor. For example, the committee may be tasked with duties related to performance evaluations, compensation, and the filling of vacancies. The CAO Committee is to make recommendations to the Council annually regarding the process for CAO evaluations and the selection of the consultant to serve as the facilitator for the CAO evaluations for the year. The CAO Committee is also to schedule the CAO performance evaluations in partnership with staff.

City/Schools Liaison Committee
Typically meets monthly
The City-Schools Liaison Committee is composed of two Councilmembers and two members of the Board of Education of the Palo Alto Unified School District. The committee’s purpose is to share information, collaborate, and coordinate on issues related to Palo Alto’s school-aged children and youth.

Policy & Services Committee: See Attachment C
Finance Committee: See Attachment D
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Committee Objectives

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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – April 2025

ATTACHMENT C

UPDATED POLICY & SERVICES TENTATIVE TOPICS
CALENDAR 2025
As of April 24, 2025
The end of the document contains information on the completed 2024 referrals as well as the pending referral with no set date.

January
•Mayor appoints Committee and designates Chair; no Policy & Services Committee meeting February
•Auditor Report: Grant Management Audit
•Auditor Report: Utility Billing Audit
•Nonprofit Partnerships Workplan
•Follow Up from City Council Retreat re Umbrella Operating Strategies March
•Recommendations for Nonprofit Partnerships Workplan Phase 1 (continued item) •Auditor Quarterly Report
April
•Legislative Update (State and Federal)
•Auditor Report: Wildfire
•Auditor Report: Risk Assessment and Annual Audit Plan (might move to May) •Referral (3/10/2025): Discuss interviewing process for Boards and Commissions May
•Recommended Approval of Safe Streets for All Action Plan •Discussion and Direction on Establishing Council Chambers Facilities Use and Reservation Policy and Procedures
•Update on Recent Wellness and Belonging Work
•Referral Follow Up: Discussion and Recommendation to Council Regarding Potential New Procedure for Councilmembers to Make Referrals to Staff Besides Colleagues’ Memo •Informational: Auditor 3 rd Quarter Status Report
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Attachment C - 2025
Policy and Services
Committee Workplan

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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – April 2025 June
•Referral (2024): Review of an annual schedule of repeat items that occur annually on agendas for Policy & Services, Finance Committee, and City Council along with the approximate month they occur
•Nonprofit funding recommendations for 2025-2026
•Tentative: Auditor Report: Dispatch Assessment
•Tentative: Auditor Report: Purchasing Card Audit
•Tentative: Auditor Report: CSD Equipment and Materials Inventory Management Audit •Referral: Board and Commission Member Onboarding Support July
No meeting; Council break
August
•Auditor Report: PS Overtime
•Auditor Report: Building Permit and Inspection Fees
•Wellness and Belonging Update Report
•Unhoused services prioritization discussion (re the ‘Previous Council Discussions’ items below) September
•Auditor Report: Junior Museum and Zoo
•Tentative: Bicycle Pedestrian Transportation Plan (BPTP) •Auditor Report: Annual Follow-up on Audit Recommendations •Legislative Update (State and Federal)
•Legislative Agenda and Guidelines – Will also include the Legislative Manual October
•Quarterly Audit Status Report
•Referral (2024): Policy & Services to review and make recommendations for any initiatives to support and strengthen neighborhood programs (linked to discussions in 2021) •Referral (2024): Establish a frequency for joint City Council meetings or Policy & Services meeting with Boards and Commissions, Youth Council, and meetings with Boards and Commissions Chairs; November
•Auditor Report: TBD
•Quarterly Update on Recent Wellness and Belonging Work •Legislation anything after the September discussion
December
•Auditor Report: TBD
•Procedures & Protocols Handbook Discussion (Annual Discussion) •2026 City Council Priorities Discussion (focused on process, the retreat and submitted ideas) Item 8
Attachment C - 2025
Policy and Services
Committee Workplan

Item 8: Staff Report
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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – April 2025 •Informational: Report out on Status of Committee Referrals •Informational: Update of Legislation
Completed Referrals (status and date of referral):

1. Public Arts Program Discussion

2. Council Discretionary Funds Policy

3. Discussion of the Creation of the Advisory Committee regarding Council Compensation (Committee action completed.

4. Initial Discussion Regarding Potential New Procedure for Councilmembers Referrals to Staff

5. Directly elected Mayor discussions
Pending Referrals:

1. Continued follow up of: Seismic Ordinance Update

2. Leaf blowers (2023 discussion continued)
Previous Council Suggestions:

1. Lead inclusive engagement and outreach to co-create an implementation plan to address homelessness in Palo Alto

2.Explore options to expand RV safe parking, in particular near Geng Road. Present findings to Council

3.Pursue options for ensuring sanitary and safe conditions related to unhoused populations.

Relates to efforts to address health and safety impacts of homelessness.

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Attachment C - 2025
Policy and Services
Committee Workplan

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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org

ATTACHMENT D

FINANCE COMMITTEE WORKPLAN
CALENDAR 2025
As of February 13, 2025
The Municipal Code states that the role of the Council Finance Committee is to consider and make recommendations on matters referred to it by the Council relating to finance, budget, financial audits, capital planning and debt. (§2.04.210).

See the end of the document for information on the completed 2024 referrals as well as the outstanding and on hold referrals to date.

January
Mayor appoints Committee and designates Chair; usually no FC meeting February
No Meeting, City Council meeting scheduled for Cubberley visioning March (4th & 18th)
• Planning and Development Services Municipal Fee Update • Real Property Transaction Review
• Storm Water Management Fee
April (1st & 15th)
• Utilities Advisory Commission Rate Forecasts and Five-Year Financial Plans: Gas, Electric, Water, Wastewater Collection
• Review Human Services Resource Allocation Program recommended grants after Human Resources Commission Review in March [tentative]
May (6th, 7th, & 20th)
• Annual Budget Review: Operating and Five-year Capital Improvement Plan o Alternative meeting times (9:00am – 5:00pm) 5/6 and 5/7 • City-wide Municipal Fee Study
June (3rd & 17th)
• Review Cubberley [tentative]
• Third Quarter Fiscal Year 2025 Financial Report
• Adoption of Fiscal Year 2025 Investment Policy (to be done by June 30 per code) July
No meeting; Council Break
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Attachment D - 2025
Finance Committee
Workplan

Item 8: Staff Report
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Finance Committee Tentative Topics, Calendar 2025
As of February 13, 2025

August
•Grid Modernization Capital Improvement review issuance of debt for project financing September
•Accept California Public Employees’ Retirement System (CalPERS) Pension Annual Valuation.

Reports as of June 30, 2024
oEvery 3-4-year review/decision on pension funding policy assumptions next review scheduled for FY 2026.

October

November
•Informational: Report out on Status of Committee Referrals •Discussion and Recommendation to the City Council to Accept the Macias Gini & O'Connell's Audit of the City of Palo Alto's Financial Statements as of June 30, 2025 and Management Letter
•Discussion and Recommendation to Approve the Fiscal Year (FY) 2025 Annual Comprehensive Financial Report (ACFR) and Approve Budget Amendments in Various Funds December
•Review and Forward the FY 2027 - FY 2036 Long Range Financial Forecast •First Quarter Fiscal Year 2026 Financial Report
•Preliminary Utility Rate Forecast Review

Referred Topics:

A full report on the status of Finance Committee referrals and the status can be found here1, Item 2 on the November 19, 2024 agenda.

Completed/Scheduled Referrals
1) JMZ ticket pricing analysis to understand interactions between changes to $18 ticket, attendance, and cost recovery.
2) Planning and Development Services Fee Study [scheduled March 2025] 3) Parking Permits Pricing and Parking Permit Funds Financial Status. [scheduled for FY 2026 budget process]
4) Ability Path financial support [addressed in FY 2025 Mid-Year Report] 5) Analyze Fire Emergency Medical Response Fee. [scheduled for FY 2026 Municipal Fee Schedule]
In Progress/Pending Referrals:
6) Fire Emergency Medical Response; Supplemental Resources. [Initial review completed November 2024, additional resources addressed in FY 2025 Mid-Year Report] 7) Review Parks Restroom Prioritization; Specifically, Pardee Park. 8) Active Recruitment Digital Marketing Services (Contract Services) Item 8
Attachment D - 2025
Finance Committee
Workplan

Item 8: Staff Report
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Finance Committee Tentative Topics, Calendar 2025
As of February 13, 2025
9) Establish Organizational Development & Safety Division 10) Explore financial, outreach, and policy processes for adding East Palo Alto to resident rates for the golf course
11)Increasing Revenue- Generating CSD Programming to Meet Demand Item 8
Attachment D - 2025
Finance Committee
Workplan

Item 8: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 5, 2025
Report #:2502-4128
TITLE
Approval of Contract Change Order No. 1 in the Amount of $1,500,000 to Contract C23186274 with Monterey Mechanical Company, for On-Call Emergency and Critical Construction Services at the Regional Water Quality Control Plant, for a Total Compensation Not-to-Exceed Amount of $3,000,000, funded by Wastewater Treatment Fund Capital Improvement Plant Repair, Retrofit, and Equipment Replacement Capital Project (WQ-19002); CEQA Status – Not a Project

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Change Order No. 1, adding $1,500,000 to Contract C23186274 with Monterey Mechanical Company for on-call emergency and critical construction services at the Regional Water Quality Control Plant, for a revised total amount not-to-exceed of $3,000,000; and

2. Approve an amendment to the Fiscal Year 2025 Adopted Capital Budget Appropriation for the Wastewater Treatment Fund (requires a 2/3 majority vote) by:
a. Increasing the Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002) appropriation by $1,500,000; and
b. Decreasing the Wastewater Treatment Fund balance by $1,500,000.

EXECUTIVE SUMMARY
The Regional Water Quality Control Plant (RWQCP) is an essential industrial facility that treats wastewater from Palo Alto and its regional partner cities. Because of its critical role, the City maintains on-call construction services with a contractor to respond quickly in the event of a serious equipment or process failure that is too large or complex for the RWQCP maintenance staff to handle. With three work orders already placed to the contractor under the existing contract, the initial funds are nearly depleted. Change Order No. 1 will add more funds to the contract to continue critical repairs and maintenance at the RWQCP.

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BACKGROUND
The RWQCP is a 25-acre industrial complex containing a number of complex treatment unit processes. The RWQCP facilities operate 24 hours a day, 7 days a week. The facilities include steel and concrete buildings, tanks, pumps, pipes, valves, motors, and other industrial machinery. The aging infrastructure must be maintained in a state of operational readiness to meet federal, state, and local regulations.

A competitive bid process was conducted in late 2022 and on March 6, 2023, Council approved a contract with Monterey Mechanical Company (MMC) for $1.5 million through March 15, 2028 to provide critical and emergency construction services for the RWQCP.1 Over the past 11 years, MMC has consistently provided high-quality, timely, and cost-effective services for the RWQCP over the course of several previous on-call construction contracts. MMC has completed or is actively engaged in several critical work orders under the current contract, summarized as follows:

Work Order 2301 - Repair of the RWQCP Outfall Pipeline in Embarcadero Road. During heavy rains in January 2023 and February 2023, staff discovered the pipe was leaking at joints, raising concerns about potential sinkhole formation. MMC was called in to assess the situation and plan for repairs. The work involved excavating the road, carefully working around existing underground utilities, and sealing the leaks from the exterior of the pipe. MMC used caution not to damage the pipe, as the pipe is always in service, conveying treated effluent from the RWQCP to the Bay. The work entailed driving sheet piles 10-feet into the subsurface and repairing the leaks with a hydrophilic concrete grout and polyurethane foam injection into the joints. MMC also had to plate and unplate the excavated road surface daily and implement traffic control to reroute vehicles, pedestrians, and cyclists. The final cost for this work order was $635,000.

Work Order 2302 – Replace Blend Tank Pipe and Valves. On November 13, 2024, a section of pipe in the Blend Tank Mixing Pumps recirculation line ruptured, causing sludge to spray into the air.

Operations quickly isolated the system, and MMC was promptly called in to assess the situation and determine a course of action. The immediate task was to replace the damaged section of pipe to return the system to service. MMC was able to source and install a replacement pipe section within 10 days. While the system was being assessed, staff discovered that the entire 25- year-old piping system in the Blend Tank Mixing Pumps was in poor condition and required full replacement. Given the urgent need for these repairs, MMC was tasked with sourcing the necessary materials, including ductile iron glass-lined pipes and valves. The key challenge was the long lead time for delivery: the valves required up to 52 weeks for delivery. Recognizing this, staff directed MMC to immediately initiate a work order so that replacement could proceed as soon as 1 City Council, March 6, 2023; Agenda Item #5; SR #2212-0703 https://portal.laserfiche.com/Portal/DocView.aspx?id=64924&repo=r-704298fc&searchid=75e1224f-6e0a-4e24- 8759-b36ddff9c0da
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possible. In early January 2025, MMC provided pricing for the required materials, with the total cost for material supply and installation amounting to $847,000.

Work Order 2303 – Aeration Basin No. 4 (AB-4) Base Concrete Leak Repairs. AB-4 has been out of service for more than a year as part of a major construction project. After AB-4 was re-filled in preparation to return it to service, staff discovered some weeping / leaks at the concrete foundation along the south wall of the basin. MMC was called in along with their specialty epoxy injection subcontractor. The subcontractor arrived at site (on a Saturday), pinpointed the areas of leakage, and injected polyurethane foam into the concrete to seal the leaks. This work was completed within a week of discovery, and the total cost for these repairs was $5,835.

Work Order 2304 - DMF Backwash Valves and Backwash Pump Manifold Replacement. The Dual Media Filtration (DMF) Building filters have elevated piping manifolds used for the filter’s operation, which are about 20-feet above floor level. Several filter backwash valves need to be replaced because of leakage, and the valves are nested into very tight valve manifolds. In addition, the Backwash Supply Pumps discharge manifold is corroded and leaking from an elevated connection. The valves and the pumps piping manifold require replacement quickly.

MMC was asked to provide a proposal to replace the valves and corroded manifold. In February 2025, MMC provided material and installation pricing, which amounted to $650,000. Staff intends to place an order for these materials as soon as the additional contract funds are approved.

In total, these four work orders amount to approximately $2.1 million, exceeding the original contract value of $1.5 million.

ANALYSIS
System failures at the RWQCP require immediate, specialized response due to the complexity and critical nature of the operations. Some failures require the use of heavy construction equipment and the resources of a licensed contractor. In these cases, licensed contractors are required to provide on-call emergency and critical construction services. As part of its ongoing maintenance strategy, the City has relied on on-call emergency contracts since 1997. Along with ongoing capital improvements to replace aging infrastructure, this type of contract has been a vital component of keeping the RWQCP in compliance with federal, state and local regulations.

To prepare for another critical or emergency situation, and because there are still approximately three years remaining on this current on-call construction contract, staff recommends that City Council approve additional funds totaling $1,500,000 be available through the contract end date of March 15, 2028. The $1,500,000 is being added to the existing contract of $1,500,000 bringing the total contract amount to $3,000,000. A new five-year contract for on-call construction services will be solicited in late 2027.

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FISCAL/RESOURCE IMPACT
The recommendation in this report will approve a change order to increase the authorized contract amount with MMC. To fund the change order, the report also recommends a budget amendment to increase the Wastewater Treatment Fund’s Plant Repair, Retrofit, and Equipment Replacement capital project (WQ-19002) by $1,500,000.

The Plant Repair, Retrofit, and Equipment Replacement project utilizes a distinctive funding approach that includes multiple contracts over several fiscal years. The anticipated expenses are forecasted to project the necessary revenue needed from the partners to fund this project for future fiscal years. Palo Alto treats combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and East Palo Alto Sanitary District (partners). Palo Alto’s share of this project is approximately 37%, and the other five agencies’ share is approximately 63%, based on the volume and strength of wastewater contributions of each partner. The Fiscal Year 2025 budget for WQ-19002 approved by Council is $13.4 million. The contracts listed in Table 1 are some examples of the larger contracts that were encumbered in the first year when the contract was signed, but the spending is over multiple fiscal years, with the expenses billed per the partner agreements.

Table #1: Example of some of the larger projects that are funded out of WQ-19002 Project Description Total Cost Palo Alto Share Estimated Time 12 kV Electrical Distribution2 $9.6 million $3.5 million* FY25, FY26, FY27 Long Rang Facilities Plan3 $2.7 million $1.0 million FY25, FY26 On-call Emergency and Critical
Construction $0.9 million $0.3 million FY25
*Palo Alto’s share of the project is being reimbursed by Valley Water by the Guiding Principle Five (GP5) grant.4 Increasing the Fiscal Year 2025 Adopted Capital budget appropriation by $1.5 million for WQ- 19002 will provide the necessary funding to use this on-call construction contract for immediate repairs to the Dual Media Filters (DMF) and $0.9 million for future repair needs. This request increases the Fiscal Year 2025 appropriation to $14.9 million. 2 City Council, October 28, 2024; Agenda Item #5; SR #2408-3389 https://portal.laserfiche.com/Portal/DocView.aspx?id=106086&repo=r-704298fc&searchid=758a5337-ab95-483f- a382-a28e0ffd2d3b
3 City Council, June 10, 2024; Agenda Item #6; SR #2405-2993 https://portal.laserfiche.com/Portal/DocView.aspx?id=72805&repo=r-704298fc&searchid=8188b562-870a-42de- 9d7a-1d0e531fbb6a
4 City Council. June 3, 2024; Agenda Item #6; SR #2404- 2877https://portal.laserfiche.com/Portal/DocView.aspx?id=72164&repo=r-704298fc&searchid=37797962-c9d7- 483c-b7a1-46bf98d44376
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STAKEHOLDER ENGAGEMENT
This project is part of the RWQCP’s minor capital improvement program funded by the City of Palo Alto and its five partner agencies who use the RWQCP for wastewater treatment. The five partner agencies are regularly updated on both the need for and the progress of wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff about the major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget process serve as the main venue for engaging the community on both new projects such as this and associated rate impacts.

ENVIRONMENTAL REVIEW
The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of publicly owned wastewater facilities involving negligible or no expansion.

ATTACHMENTS
Attachment A: C23186274 Change Order No. 1
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 1 OF 3
Contract Change Order #01
Project Title: On-Call Emergency Construction Services Project No.: WQ - 19002 Contract Number: C23186274 Date: 3/24/2025
Contractor: Monterey Mechanical Company Change Order: 01

Description of Change Order
Background Information: The 5-year contract runs from March 21, 2023 to March 15, 2028 for $1,500,000 ($300,000 / year) to cover the cost of immediate mobilization and construction costs by the on-call contractor for handling emergency and urgent construction services at the Palo Alto Regional Water Quality Control Plant.

Change Order Justification: Work Order -2301 expenses of $634,535 have been disbursed for emergency and urgent construction services. Work Order -2302, underway with budgeted expenses of $847,000, will nearly deplete the contract budget. Work Order - 2304 budgeted expenses is $650,000, and there are insufficient funds to execute this work order.

Another $1,500,000 is requested to replenish the contract with funds to execute Work Order -2304 and to cover future unforeseen urgent and emergency work over the next three years. This C/O will be subject to approval by the Palo Alto City Council.

Description of Work to be Performed: Unexpected breakdowns or failures of equipment, piping, electrical, concrete, etc., requiring use of the funds in this contract for urgent, critical repair work.

Incorporates Field Order Number(s): N / A

Cost Time

This change order will:

 No cost change: N/A

 Increase cost by $ 1,500,000

 Decrease cost by $ N/A

This change order will:

 No change in time

 Increase time by days

 Decrease time by days

The date of completion as of this change order
remains as:

March 15, 2028

G/L account number (s):31651

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CONTRACT CHANGE ORDER PAGE 2 OF 3

Basis for change in cost:

 Unit price(s)

 Lump sum

 Cost plus

 Other:

Contract Change Order – continued
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed in this Change Order.

CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.

Accepted for Contractor: Accepted for City of Palo Alto:

By: By:

Title: Monterey Mechanical Co. Project Manager Title: Public Works Department - Project Manager Date: Date:

PCO No.

ASI
EWA
COR
CO
Description Amount Reason for Change
-01 Unexpected emergency repairs $1,500,000 Replenishment of contract funds for unforeseen work.

Total for this change
order $1,500,000

Scope of Work
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 3 OF 3
Document Preparation City Approval – WQCP Head
By: Tom Kapushinski By:

Title: Sr. Project Engineer Title: Aaron Gilbert
Plant Manager, Water Quality Control Plant
Date: Date:

City Approval – Division Head
Signature required on all change orders
By:

Title: Karin North
Asistant Director, Public Works, ESD
Date:

City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.

By:

Title: Brad Eggleston
Director of Public Works
Date:

Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Amount: $ 1,500,000.00
Previous Change Orders $ 0.00
This Change Order $ 1,500,000.00
Revised Contract Amount: $ 3,000,000.00
Compare to:

Original Contract
Authorization: $ 1,500,000.00 Contingency: 0.00
Contract Amendment
Authorizations $ 0.00 Contingency added: 0.00
Contingency
Authorizations: $ 0.00 Used to date 0.00
Total Authorized Funding: $ 3,000,000.00 Balance remaining 0.00 Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total authorized funding amount.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: May 5, 2025
Report #:2502-4182
TITLE
Approval of Amendment and Extension of Supplement Agreement No.1 to the Master Funding Agreement Between the City of Palo Alto and the Metropolitan Transportation Commission, to Prepare a Downtown Housing Plan for the City of Palo Alto. CEQA Status: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15262.

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager to execute the amendment and the extension of Supplement Agreement No.1 to the Master Funding Agreement between the City of Palo Alto and the Metropolitan Transportation Commission (MTC) (Attachment A) to prepare the Downtown Housing Plan.

BACKGROUND
On May 14, 2021, MTC awarded the City an $800,000 grant for the preparation of a Housing Plan. The scope of the project was refined in collaboration with MTC prior to executing Supplement Agreement No. 1 of the Master Funding Agreement. The City Council accepted the grant and authorized the City Manager to execute the agreement with MTC for the $800,000 to develop the Downtown Housing Plan.

This agreement set a three-year deadline for grant funding, requiring the City to adopt the Plan by April 30, 2025, to qualify for reimbursement. However, the project was delayed due to unforeseen circumstances and officially began in March 2024, after staff finalized consultant agreements with Wallace Roberts and Todd, LLC, and the Good City Company.1 The Downtown Housing Plan focuses on housing production in the Downtown, identifying development standards, design standards, and the necessary public infrastructure 1 City Council Meeting: February 26, 2024
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improvements to accelerate housing production; realizing racial and economic equity by affirmatively furthering fair housing, as required by the grant.

ANALYSIS
The project team is currently working on the community assessment report, evaluating the development guidelines and the challenges to increasing housing production in the area. With the original deadline (April 30, 2025) to project completion fast approaching, the delay in project initiation requires extending the timeline of the project by another two years (April 30, 2027). Staff coordinated with MTC on the extension of the deadline and also requested amending the agreement for consistency with the contract scope of work that is currently being performed by the project consultants. MTC approved the request for extension on December 18, 2024, and reviewed the modified scope of work requested by staff.

Additionally, staff also requested reallocation of the assigned budget within tasks and existing scope of work mentioned in the Supplement Agreement No. 1 of the Master Funding Agreement that was authorized by the Council in April 2022. The reallocation would provide an additional $50,000 for Task 1: Project Management and reduce the budget on Task 4:

Downtown Housing Plan Preparation from $150,000 to $100,000. The reallocation however will not impact the expected deliverables.

POLICY IMPLICATIONS
The City’s Comprehensive Plan Policies L-2.4, L-4.7, and L-4.8 and the Housing Element’s Implementation Program 1.4: City-Owned Land Lots and Downtown Housing Plan are specific to the downtown area; guiding the development of the Housing Plan and its objectives. The adopted Downtown Housing Plan will be consistent with the Comprehensive Plan, specifically the Land Use and Housing Elements.

FISCAL/RESOURCE IMPACT
The extension of project timeline with MTC has no impact on the already approved project budget and requires no additional funding beyond what has already been allocated by the Council. However, if the extension is not approved then the project would not be completed by the April 30, 2025, deadline, and the City will not be able to claim reimbursement for incomplete tasks and may forfeit unclaimed grant money potentially burdening the general fund to complete the project.

STAKEHOLDER ENGAGEMENT
The project team understands that Community Engagement is the key to the success of the planning effort, in addition to the technical, design, and expertise provided by qualified consultants funded by the grant. There have been significant efforts from the project team to engage the resident community including a dedicated webpage, social media announcements, formation of the Community Advisory Group (CAG), a Technical Advisory Group (TAG), Item 10
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conducting stakeholder interviews, Community Open House, survey, and pop-ups including tabling at City events and Farmers Markets.

The project team in the last year has:
•Organized a Community Open House on October 10, 2024, at the Community Meeting Room, City Hall, and pop-ups at various City events and at Farmers Markets. The Open House and the events were well attended by members of the community who provided the project team with insight into the key challenges and opportunities of the Downtown Area.
•Facilitated a community survey soliciting input from residents was live from November 18, 2024, through December 20, 2024. Approximately 406 responses were received, and the results are being consolidated by the project team. It will be included in the Community Assessment Report that the project team is working on. •Convened the first CAG meeting on January 14, 2025, introducing the members of the CAG to one-another and the project team, defining the scope of the Plan, roles, and responsibilities as members of the CAG, and seeking feedback and assistance in engaging with the community.

ENVIRONMENTAL REVIEW
The actions recommended in this report are exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15262 because it can be seen with certainty that there is no possibility that amending a project timeline would have significant impact on the environment. The City will prepare an environmental analysis for the Downtown Housing Plan when more project specifics have been identified.

ATTACHMENTS
Attachment A: Revised Supplement Agreement No. 1
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 10
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AMENDMENT NO. 1 SUPPLEMENT NO. 1
To MASTER FUNDING AGREEMENT
Between METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF PALO ALTO
For UNIVERSITY AVE/ DOWNTOWN PDA PLAN

THIS AMENDMENT, effective as of February 19, 2025 is Amendment No. 1 to Supplement No. 1 to the Master Agreement by and between the Metropolitan Transportation Commission ("MTC") and City of Palo Alto (“AGENCY”), dated February 17, 2022 (“Agreement”).

NOW, THEREFORE, the parties agree to modify the subject Agreement as follows:

1. Paragraph 3 is revised to extend the term from April 30, 2025 to April 30, 2027.

2. Annex I, Project Description and Scope of Work is deleted in its entirety and replaced with Annex I, Project Description and Scope of work (as revised via Amendment No. 1)

3. Annex II, Project Budget and Schedule is deleted in its entirety and replaced with Annex II, Project Budget and Schedule (as revised via Amendment No. 1).

4. Retention of Contract Provisions. Except as provided herein, all other terms and conditions of the Agreement remain unchanged.

IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto as of the day and year first written above.

METROPOLITAN TRANSPORTATION

COMMISSION

CITY OF PALO ALTO

Andrew B. Fremier
Executive Director
Date

Ed Shikada
City Manager
Date

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ANNEX I
Project Description and Scope of Work

City of Palo Alto University Ave/Downtown PDA Plan
(as revised via Amendment No. 1)

Project Description:

In May 2021, MTC awarded the City of Palo Alto with a PDA Planning Grant to complete their proposed University Ave/Downtown PDA Plan. Renamed to the Downtown Housing Plan (Housing Plan), the plan will realize opportunities to add housing units to downtown Palo Alto. The area is a local activity center, a regional job center, and, due to proximity to Stanford University and global companies, an international destination.

Despite these strengths, Palo Alto faces challenges to realizing housing in the downtown.  Land costs are high and offices are more profitable than housing. Creating housing near transportation hubs that is affordable in one of our highest land value areas in the city—and highest value in the nation—is an incredible challenge. The area is attractive as an employment center due to proximity to Stanford, Caltrain, and the clout companies seek by having a Palo Alto address. These factors drive up land values in this mixed-use area and offices provide a greater return on investment than housing, leading to more office development than housing.
 Insufficient bike and pedestrian infrastructure can lead to greater car use. Improving bike and pedestrian mobility to and through downtown can decrease car use. Though located near the busiest Caltrain station, it can be challenging for visitors to find their way on foot to key destinations in the downtown. Likewise, the bike infrastructure does not maximize safety and comfort of cyclists. These connections are critical to building new homes without creating the need for more individual car ownership.  Public parking is a high value and uses significant amounts of public land. Significant public land holdings in downtown include a series of surface parking lots and parking garages. The parking spaces support local retailers, employers, and others who park in the facilities to enjoy downtown. Figuring out how to ensure the public land provides co- benefits such as parking and housing is critical to ensuring housing does not come at the expense of economic vitality.
 Reliance on external consumer base. The pandemic illustrated the challenges of relying on an external work force and student population to support downtown retailers. Through increasing the downtown population, Palo Alto can build greater resiliency by decreasing reliance on out-of- towners to support local retailers.

Through a focused and thoughtful Downtown Housing Plan, the City can overcome these challenges, accentuate its strengths, and meet the changing needs of downtown stakeholders.

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infrastructure necessary to produce significant housing downtown. The Housing Plan will also help realize racial and economic equity by affirmatively furthering fair housing.

The Downtown Housing Plan will build on City initiatives underway, including:

A. Housing Element Update, led by Planning and Development Services B. University Avenue Corridor Streetscape Design initiative led by the Public Works Department C. Sustainability and Climate Action Plan update process led by the Office of Sustainability D. Sea Level Rise Vulnerability Assessment process led by the Public Works Department E. Parking management and Vehicle Miles Traveled (VMT) studies led by the Office of Transportation
F. Citywide Bicycle + Pedestrian Plan update process led by the Office of Transportation G. Housing Objective Development Standards initiative led by the Planning and Development Services Department
H. Green Infrastructure policy initiative led by the Public Works Watershed Protection group

Housing Plan preparation requires extensive community and business outreach and participation, including facilitation of a Community Advisory Group. Housing Plan preparation also involves coordination with regional and local stakeholders, such as housing advocates, business leaders, the County, Stanford University, Caltrans, Santa Clara Valley Transportation Authority (VTA), Palo Alto Unified School District, and the Santa Clara Valley Water District.

Activities and deliverables for the Housing Plan include:
 Community outreach and participation
 Basic economic and real estate modeling to understand development feasibility, opportunities, and constraints
 Fiscal impact analysis of development on City infrastructure and services  Incorporation of state and local VMT and mobility requirements  Incorporation of the Sustainability and Climate Action Plan goals and policies  Inclusion of equity assessment results and affordable housing protection, preservation, and production assessment results from the Housing Element update process  Draft and Final Housing Plan with land use designations and proposed Capital Improvement Projects
 Proposed Comprehensive Plan (General Plan) amendments and zoning updates  A California Environmental Quality Act (CEQA) environmental document

Downtown Housing Plan Geographic Area:

A sub-area of the University Avenue/Downtown Priority Development Area (PDA), the Downtown Housing Plan area will include the following as its geographic focus:
 From east of the Caltrain tracks and Alma Street east to Tasso Street,  From Forest Avenue north to Everett Avenue, and
 City parking lots, Peninsula Corridor Joint Powers Board (Caltrain) parking lots, and public rights of way.

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Downtown Housing Plan Scope of Work:

Task 1 – Project Management and Coordination
This task outlines the primary project management and coordination tasks necessary for the Downtown Housing Plan. These tasks will be conducted throughout the Plan preparation process.

Task 1.1 – City Inter-Departmental Coordination
Task 1.2 – Project Set-up and Administration
Task 1.3 – Community Meeting and Public Hearing Preparation Task 1.4 – Communications, Website, and Media Coordination

Task 1.1 Deliverable: Memos for City Inter-Departmental Coordination Task 1.2 Deliverable: Memos for Consultant Management
Task 1.3 Deliverable: Memos for Community Meeting and Public Hearing Preparation Task 1.4 Deliverable: Memos for Communications, Website, and Media Coordination

Task 2 – Community Outreach and Engagement
This task outlines the primary community outreach and engagement for the Downtown Housing Plan. These activities will be active throughout the Housing Plan preparation process.

Task 2.1 - Community Outreach and Engagement Strategy Development This task encompasses staff/consultant preparation of the Downtown Housing Plan community outreach and engagement strategy. Throughout the Housing Plan process, it is central to gather meaningful input from a full range of stakeholders within and nearby to the planning area, including residents of all incomes, races and ethnic backgrounds, employees of local businesses, community- and faith-based organizations, and public agencies providing services in the area. This task will include laying out the specific engagement meetings, outreach channels, and methods listed in tasks 2.2 through 2.5.

Equity assessment information from the Housing Element process will inform the Community Outreach and Engagement Strategy.

Task 2.1 Deliverable: Staff Report and Final Consultant Contract Task 2.2 - Community Advisory Group Meetings (up to 18 meetings) This task encompasses convening of a Community Advisory Group that will shape the Downtown Housing Plan and review draft plan materials. Staff plan to hold up-to 6 Advisory Group meetings during the planning process. Staff anticipate the City will solicit applications and the Council will select a group that is representative of residents, housing developers, local businesses, community-based organizations, service providers, and other stakeholders.

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Task 2.2 Deliverables: Presentations, Agendas, Staff Reports or Memos for Community Advisory Group Meetings

Task 2.3 - Technical Advisory Group Meetings (6 – 10 meetings) This task encompasses convening of a technical advisory group that will shape the Downtown Housing Plan. The Technical Advisory Group will provide detailed technical input throughout the Plan process and help ensure alignment between this plan and other local and regional planning efforts. The composition would include staff from key City departments, the ABAG/MTC grant manager, as well as representatives of local, county, and regional agencies, and service providers.

Task 2.3 Deliverables: Presentations, Agendas, Staff Reports or Memos for Technical Advisory Group Meetings

Task 2.4 – Stakeholder Interviews, Community Surveys, and Service Workers Engagement Direct outreach through stakeholder interviews, community surveys, and service workers engagement to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas.

Task 2.4 Deliverable: Interviews
Task 2.4 Deliverable: Surveys
Task 2.4 Deliverable: Analysis and Synthesis of Interview and Survey Data Task 2.5 - Community Workshops, Design Charettes, Pop-ups, and Digital Engagement (at least 3 meetings)
This task includes direct outreach through both in-person and virtual workshops, charettes, pop-ups, and other meetings to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas. Key topics will include housing, mobility, advancing racial and economic equity, design preferences, and other topics. Translation services would be provided, as well as childcare if the meetings are in person.

Task 2.5 Deliverables: Staff Reports, Memos and/or Presentation Materials for Community Visioning Workshops, Pop-ups, and Design Charettes.

Task 2.6 – Downtown Housing Plan Website or Webpage
The team will maintain a webpage or a website for the Housing Plan process to inform the public and stakeholders on progress, centralize project records, upcoming activities, and to host online engagement activities. The website or webpage will support Task 2, Task 3, and Task 4.

Task 2.6 Deliverables: Create and Maintain Website or Webpage with Ongoing Updates

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Task 3 – Community Assessment and Policy Development
This task focuses on identifying and analyzing challenges and opportunities to increase housing development downtown. As discussed in the project description, the central challenges include:
 Land costs are high, and office is more profitable than housing.  Insufficient bike and pedestrian infrastructure can promote car use.  Public parking is a high value and uses significant amounts of public land.  Reliance on external consumer base.

Task 3.1 – Community Assessment and Policy Development Strategy This task encompasses staff release of a request for proposals for Housing Plan preparation, review of proposals, and consultant selection. We would seek proposals from consultants with expertise in community engagement, housing/comprehensive planning, urban design and economic/real estate analysis. This task results in the inclusion of a refined selected consultant scope of work to complete the project and a report to inform the community of a policy development strategy to achieve the Housing Plan goals.

Task 3.1 Deliverable: Staff Report and Final Consultant Contract Task 3.2 – Key Community Assessment and Policy Development Focus Areas This task outlines the primary analysis and reports necessary for identifying and analyzing the H o u s i n g P l a n area central opportunities and challenges, as well as for meeting the PDA Planning
Grant analysis requirements. These analyses will inform and become part of the chapters contained within the Housing Plan.

Task 3.2.1 – Equity Analysis, Assessment, and Policy Recommendations This task will identify any existing inequities between people of different racial or ethnic backgrounds, genders, age groups, abilities, or sexual orientation, as well as the historic and recent factors and policies that contribute to these inequities. This task will utilize this information to develop policies to address existing inequities, as well as to inform the meetings and outreach efforts discussed in Task 2 and inform the deliverable for Task 3.2.2. This task integrates and builds upon the findings from the Housing Element update process and informs understanding of community needs around equity in the Housing Plan area. That information will include area specific information on demographics, economic opportunity and stability, housing stability, health and risk factors of residents and employees of businesses in the plan area and surrounding community.

Task 3.2.1 Deliverable: (1) Equity Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session Docusign Envelope ID: DA647320-B22E-4B8F-A119-324400B3A719 Item 10
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Task 3.2.2 – Responsiveness to State, Regional, and Local Legal and Regulatory Landscape for Housing Production, Preservation, and Protection Policy Recommendations
This task involves investigating and summarizing state, regional, and the local policies used by other jurisdictions that influence the regulatory landscape for housing production, preservation, and protection.

Task 3.2.2 Deliverable: (1) State, Regional, and Local Legal and Regulatory Landscape Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session

Task 3.2.3 – Affordable Housing and Jobs Analysis, Assessment and Policy Recommendations This task identifies the composition of jobs in the Housing Plan area and evaluates the affordability of housing compared to the wages of employees in these jobs. This task quantifies housing need, establishes the housing profile for the area, (deed-restricted affordable housing, unsubsidized affordable housing, market-rate housing, informal housing and accessibility, etc.), establishes the employment/industry profile for the area, identifies the development pipeline, assesses real estate conditions and constraints, and assesses local policy conditions and constraints. This task will discuss obstacles to delivery of housing for all income levels and responsive policies. This task will be closely coordinated with the Housing Element update process that is already underway.

This task integrates and builds upon the findings from Task 3.2.2, as well as the Housing Element update process. This task informs understanding of community needs regarding housing and employment, including how to affirmatively further fair housing in the plan area. This task draws upon the information from Task

3.2.1 and identifies in greater detail the characteristics of the existing and planned housing stock in the plan area and surrounding area, as well as projected short- and long-term need.

Task 3.2.3 Deliverable: (1) Affordable Housing and Jobs Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session

Task 3.2.4 – Housing Development Implementation, Economic Feasibility, and Financing Analysis and Policy Recommendations
While housing in the Downtown area is attractive, high land costs, constrained parcel sizes, competition with other land uses, and other constraints significantly influence housing yield. This task focuses on a housing development feasibility analysis to identify the development standards, incentives, and the associated remaining amount of subsidy necessary to yield more residential and mixed-use developments specifically in the H o u s i n g P l a n area. This task integrates and builds upon the findings from Task 3.2.2, Task 3.2.3 and the Housing Element update Docusign Envelope ID: DA647320-B22E-4B8F-A119-324400B3A719 Item 10
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process. This task will analyze the housing opportunity sites identified in the Housing Element Update to understand what is required for housing to be realized on these sites.

The analysis will investigate publicly owned and privately owned parcels at various levels of housing affordability. The analysis will identify funding necessary to rehabilitate existing affordable units in the area, thereby preserving and protecting them. Like efforts undertaken by MTC and ABAG, the analysis will identify the funding shortfall that limits the level of affordable housing production and rehabilitation in the Housing Plan area.

This task will include recommendations for City actions to help finance affordable housing, such as consideration of publicly owned parking lots or other publicly owned parcels for housing and mixed-use projects, consideration of different types of partnerships with developers, facilitation of land assembly policies, consideration of establishing a business tax to support the Housing Trust Fund, and consideration of a bond measure.

Task 3.2.4 Deliverable: (1) Housing Development Implementation, Economic Feasibility, Financing Analysis, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.5 – Resilience and Climate Adaptation Analysis, Assessment and Policy Recommendations
This task assesses the relative vulnerability of the plan area and surrounding communities to natural hazards (examples: sea level rise and flooding, seismic factors) and to environmental quality (examples: air quality, tree canopy/green space, water quality, environmental contamination). This task identifies potential investments, policies or programs to better adapt the community to these vulnerabilities and poise the community to respond to future conditions and events. This task integrates and builds upon the Sustainability and Climate Action Plan led by the Office of Sustainability and the Sea Level Rise Vulnerability Assessment led by the Public Works Department.

Task 3.2.5 Deliverable: (1) Resilience and Climate Adaptation Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.6 – Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendations
This task identifies the existing availability of essential services and social infrastructure (examples: health care, food and sundries, childcare and education, open space and recreation, community facilities, etc.), existing physical infrastructure (examples: energy, waste, water, electric vehicle charging, broadband, etc.), and existing community assets (examples: formal and informal gathering spaces, cultural institutions, etc.) in the plan area. This task will assess the stability of existing and identify currently missing community assets, services, Docusign Envelope ID: DA647320-B22E-4B8F-A119-324400B3A719 Item 10
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and infrastructure, as well as identify potential investments, policies or programs to policies to support them in the Housing Plan area. This analysis will focus on the needed assets to support an increased downtown population.

Task 3.2.6 Deliverable: (1) Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session

Task 3.2.7 – Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendations This task will assess trip patterns, the quality and relative safety of travel by active modes and for persons with disabilities, access to transit and essential services, and vehicle miles traveled for residents and employees of local businesses within and adjacent to the Housing Plan area. This task will identify potential investments, policies or programs to improve mobility and interconnectivity, as well as reduce Vehicle Miles Travelled (VMT).

This task integrates and builds upon Public Works Department and Office of Transportation efforts, including the University Avenue Corridor Street Design, Citywide Bicycle + Pedestrian Plan update, parking management, and VMT policy making.

Task 3.2.7 Deliverable: (1) Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.8 – Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations
This task evaluates the City’s current Downtown Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development to assess which aspects could be updated to facilitate housing development in the Downtown Housing Plan area. Private realm considerations include design gestures that contribute to a strong sense of place, such as building massing, lighting, landscaping, and building interfaces with public realm such as streets, alleys, and open space. Considerations include building on previous efforts that maintained view corridors, activity focal points, and a human scale orientation throughout downtown. Considerations also include urban design that addresses the anticipated greater diversity of building forms, densities, height, and mixed- use development for the Housing Plan area. This effort will draw on city-wide Objective Design Standards as well as Housing Element discussions regarding form.

Led by the Office of Transportation and the Public Works Watershed Protection group, public realm considerations include a Sustainable Streets focus that identifies the key remaining steps necessary to implement vision zero policies, complete street designs, versatile use of the public right of way, and green streets Docusign Envelope ID: DA647320-B22E-4B8F-A119-324400B3A719 Item 10
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infrastructure designs within the Housing Plan area. Public realm considerations also reference innovations in parking management and curb management.

Task 3.2.8 Deliverable: (1) Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations Report or Memo (2) City Council Study Session

Task 3.2.9 – Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices and Housing Plan Approach Recommendations This task integrates all other subtasks and discusses the options for meeting the Housing Plan area central challenges based upon the information surfaced during this Community Assessment and Policy Development effort.

Task 3.2.9 Deliverable: (1) Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices and Housing Plan Approach Recommendations Report or Memo (2) City Council Study Session Task 4 –Downtown Housing Plan Documents
This overall task outlines the primary documents necessary for adoption of the Downtown Housing Plan, as well as the documents necessary to meet the PDA Planning Grant requirements.

Task 4.1 – Downtown Housing Plan Preparation
This task outlines the steps necessary to prepare the Downtown Housing Plan.

Task 4.1.1 – Housing Plan Sections and Topic Outline
This task results in the outline of the Housing Plan sections and topics. As required by the PDA Planning Grant, the outline can be organized differently, but will include at least the following topics: introduction, vision, development standards, open space, mobility, community assets and infrastructure, and implementation and financing. This report will integrate the content and deliverables from the prior tasks.

Task 4.1.1 Deliverable: Housing Plan Sections and Topic Outline

Task 4.1.2 – Housing Plan Administrative Draft 1
Task 4.1.2 Deliverable: Master Plan Administrative Draft 1

Task 4.1.3 – Housing Plan Community Advisory Group and Technical Advisory Group Draft 1 Task 4.1.3 Deliverable: Housing Plan Community Advisory Group and Technical Advisory Group Draft 1

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Task 4.1.4 - Housing Plan Administrative Draft 2
Task 4.1.4 Deliverable: Housing Plan Administrative Draft 2

Task 4.1.5 - Housing Plan Public Hearing Draft 1
Task 4.1.5 Deliverable: Housing Plan Public Hearing Draft 1

Task 4.1.6 – Housing Plan Final
Task 4.1.6 Deliverable: Housing Plan Public Final

Task 4.2 – Downtown Housing Plan California Environmental Quality Act (CEQA) Environmental Document

This task outlines the steps necessary to prepare the CEQA Environmental Document necessary for the Downtown Housing Plan. The goal of this task is to prepare the correct CEQA document that will clear projects that are consistent with the Housing Plan, avoiding the need for project- level analyses.

Task 4.2.1 – Notice of Preparation (NOP)/Initial Study
Task 4.2.1 Deliverable: Notice of Preparation (NOP)/Initial Study

Task 4.2.2 - Identification of Appropriate CEQA Environmental Document This task identifies the appropriate CEQA Environmental Document, likely an Initial Study/Negative Declaration, Initial Study/Mitigated Negative Declaration, Supplemental Environmental Impact Report, or a Programmatic Environmental Impact Report.

Task 4.2.1 Deliverable: City Internal Memo

Task 4.2.3 – Environmental Document Notices and Preparation This task outlines the steps for completing CEQA documentation for the Downtown Housing Plan.

Task 4.2.3A – Scoping Meeting (If Applicable)
Task 4.2.3A Deliverable: Staff Report, Noticing, and Scoping Meeting

Task 4.2.3B – Administrative Draft CEQA Environmental Document Task 4.2.3B Deliverable: Administrative Draft CEQA Environmental Document

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Task 4.2.3C –Draft CEQA Environmental Document
Task 4.2.3C Deliverable: Draft CEQA Environmental Document

Task 4.2.3D – Notice of Completion (NOC)
Task 4.2.3D Deliverable: Notice of Completion (NOC)

Task 4.2.3E – Final Environmental Impact Report (FEIR)
(If Applicable) Task 4.2.3E Deliverable: Final Environmental Impact Report (FEIR)
Task 4.2.3F – Notice of Determination (NOD)
Task 4.2.3F Deliverable: Notice of Determination (NOD)

Task 4.3 – Downtown Housing Plan Adoption, CEQA Environmental Document Certification, Comprehensive Plan Amendment, and Municipal Code Update This task outlines the steps necessary to adopt the Downtown Housing Plan.

Task 4.3.1 – Public Hearings (Updates and Coordination) This task pertains to public hearings with City Council and other boards and commissions to provide updates and coordination on the Housing Plan process.

Three to five public hearings are anticipated with each body (i.e. City Council, Planning and Transportation Commission, Architectural Review Board).

Task 4.3.1 Deliverables: Staff Reports and associated presentations Task 4.3.2 – Public Hearings (Adoption)
This task pertains to public hearings with City Council and other boards and commissions necessary to certify the CEQA Environmental Document and adopt the Housing Plan. At least four public hearings are anticipated.

Task 4.3.2 Deliverables: Staff Reports and associated presentations Task 4.3.3 – CEQA Environmental Document Certification or Adoption Task 4.3. 3 Deliverable: Document Certification/Adoption Resolution Task 4.3.4 - Housing Plan Adoption
Task 4.3.4 Deliverable: Housing Plan Adoption Resolution

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ANNEX II

PROJECT BUDGET AND SCHEDULE

REIMBURSEMENT
(as revised via Amendment No. 1)

MTC shall reimburse AGENCY in estimated amounts by task indicated below. Budget may be reallocated between tasks in the MTC Project Manager’s discretion. Payment shall be due upon acceptance by the MTC Project Manager. AGENCY shall submit an invoice identifying the project deliverable or milestone for which payment is sought no later than thirty (30) days after MTC's acceptance of such deliverable/milestone. Final invoice shall be submitted no later than 30 days after the end date of the supplement.

DELIVERABLE MTC

REIMBURSEMENT

EXPECTED

COMPLETION
Task 1 – Project Management and
Coordination $100,000
Ongoing. Due
completion
04/30/2027

1.1 City Inter-Departmental Coordination and
weekly check-in meetings
 Memos
4/30/2027

1.2 Project Set-up and Administration
 Memos 04/30/2024

1.3 Community Meeting and Public Hearing
Preparation
 Memos
04/30/2027

1.4 Communications, Website, and Media
Coordination
 Memos
04/30/2027
Task 2 – Community Outreach and
Engagement $200,000 04/30/2027

2.1 Community Outreach and Engagement
Strategy Development
 Staff Report and Final Consultant
Contract
04/30/2025

2.2 Community Advisory Group Meetings
 Presentations, Agendas, Staff Reports or
Memos for Community Advisory Group
Meetings
08/31/2026

2.3 Technical Advisory Group Meetings 10/30/2026
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 Presentations, Agendas, Staff Reports or
Memos for Technical Advisory Group
Meetings

2.4 Stakeholder Interviews, Community Surveys,
and Service Workers Engagement
 Interviews
 Surveys
 Analysis and Synthesis of Interview and
Survey Data
06/24/2026

2.5 Community Visioning Workshops, Design
Charettes, Pop-ups, and/ or Feedback Meetings
 Staff Reports, Memos and/or Presentation
Materials for Community Visioning
Workshops, and Design Charettes
06/24/2026

2.6 Downtown Housing Plan Website
 Create and Maintain Website or Webpage
with Ongoing Updates
04/30/2027
Task 3 – Community Assessment and Policy
Development $400,000 02/25/2026

3.1 Community Assessment and Policy
Development Strategy Preparation
 Staff Report and Final Consultant
Contract
01/08/2025

3.2 Key Community Assessment and Policy
Development Focus Areas
 Equity Analysis, Assessment, and Policy
Recommendation Report or Memo
 State, Regional, and Local Legal and
Regulatory Landscape Analysis,
Assessment, and Policy Recommendation
Report or Memo
 Affordable Housing and Jobs Analysis,
Assessment, and Policy Recommendation
Report or Memo
 Housing Development Implementation,
Economic Feasibility, Financing Analysis,
and Policy Recommendation Report or
Memo
 Resilience and Climate Adaptation
Analysis, Assessment, and Policy
Recommendation Report or Memo
04/12/2025
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 Community Assets, Services, and
Infrastructure Analysis, Assessment, and
Policy Recommendation Report or Memo
 Mobility and Interconnectivity Analysis,
Assessment, and Policy Recommendation
Report or Memo
 Downtown Visioning,
Opportunities/Constraints, Identification
of Community Best Practices and Housing
Plan Approach Recommendations Report
or Memo
 City Council Study Session(s)
Task 4 – Downtown Housing Plan Documents $100,000 02/25/2027

4.1 Downtown Housing Plan Preparation
 Housing Plan Sections and Topic Outline
 Housing Plan Administrative Draft 1
 Housing Plan Community Advisory
Group and Technical Advisory Group
Draft 1
 Housing Plan Administrative Draft 2
 Housing Plan Public Hearing Draft 1
 Housing Plan Public Final
11/26/2026

4.2 California Environmental Quality Act
(CEQA) Environmental Document
 Notice of Preparation (NOP)/Initial Study
 City Internal Memo
 Staff Report, Noticing, and Scoping
Meeting
 Administrative Draft CEQA
Environmental Document
 Draft CEQA Environmental Document
 Notice of Completion (NOC)
 Final Environmental Impact Report
(FEIR)
 Notice of Determination (NOD)
11/26/2026

4.3 Housing Plan Adoption, CEQA
Environmental Document Certification,
Comprehensive Plan Amendment, and Municipal
Code Update
 Public Hearing Staff Reports and
associated presentations
04/30/2027
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 Document Certification/Adoption
Resolution
 Housing Plan Adoption Resolution

Total $800,000.00

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 5, 2025
Report #:2504-4537
TITLE
Approval of Boards, Commissions, and Committees Interview Process as recommended by Policy and Services Committee

RECOMMENDATION
The Policy and Services Committee recommends that City Council adopt the following procedure to select Boards, Commissions, and Committees (BCC) candidates to interview.

BACKGROUND
On February 26, 2024, the City Council set an interview selection method for the Boards, Commissions, and Committees (BCC) that allowed each Councilmember to cast a number of votes equal to the number of vacancies plus 50%, rounded up. A minimum of two votes was required for a candidate to advance to the interview stage. While this approach provided a structured process, feedback from City Council has indicated a desire to revisit the method.

On March 10, 2025, the City Council directed staff to return to the Policy and Services Committee with options to revise the interview selection process for BCC Recruitments. At the April 8, 2025 Policy and Services Committee Special Meeting1, staff presented a range of options for consideration, including:
•Adjusted Voting-Based Selection
•Automatic Interviews for Small Applicant Pools
•Lowered Voting Threshold for Large Applicant Pools
•Proportional Voting Approach
Additional concepts were presented for potential integration into the process include a Scoring System, a Preliminary Review Panel, Weighted Voting, and a Hybrid Approach that combines multiple elements to meet the needs of various applicant pool. 1 April 8, 2025 Policy & Services Committee Meeting, Item 4 - https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16030 Item 11
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ANALYSIS
At the April 8, 2025 Policy and Services Committee meeting, the Committee considered several options to ensure that candidates are given a fair and equitable opportunity to be selected for the BCC interview phase. The Committee recommendation is that each Councilmember will receive twice the number of votes as there are vacancies. Candidates with the highest number of votes will be selected for interviews. The number of candidates interviewed will be based on the number of vacancies, as follows:
•For 6 or fewer applicants, all will be interviewed.
•For 1-2 vacancies, up to 6 candidates will be interviewed. •For 3 vacancies, up to 8 candidates will be interviewed. •For 4 vacancies, up to 10 candidates will be interviewed.

These proposed revisions are intended to create a balanced selection process that upholds the City’s values of transparency, inclusion, and civic participation. By refining the current method, City Council can help ensure that all qualified applicants have equitable access to serve their community. The proposed method would recognize and respect the time, effort, and commitment that applicants invest in the process, while also supporting Councilmembers in making informed decisions.

The recommended process will be reflected in the BCC Handbook, which is available publicly and to BCC members. This provides transparency and clear communication regarding this step of the BCC recruitment cycle.

FISCAL/RESOURCE IMPACT
The recommendations and actions taken in this report will not impact the City on a fiscal basis.

STAKEHOLDER ENGAGEMENT
The item was presented to the Policy and Services Committee on April 8, 2025. Public notification was completed through the agenda posting procedure in print and digital.

ENVIRONMENTAL REVIEW
City Council action on this item is not a project as defined by CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

APPROVED BY:

Mahealani Ah Yun, City Clerk
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Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 5, 2025
Report #:2504-4540
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending PAMC Sections

2.04.190 and 2.04.200 to Set the Regular Meeting Time of the Finance Committee and the Policy and Services Committee by Resolution or Ordinance

BACKGROUND
The City Council heard this item on April 14, 2025 for a 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 of the Council of the City of Palo Alto Amending PAMC Sections

2.04.190 and 2.04.200 to Set the Regular Meeting Time of the Finance Committee and the Policy and Services Committee by Resolution or Ordinance APPROVED BY:

Mahealani Ah Yun, City Clerk
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending PAMC Sections

2.04.190 and 2.04.200 to Set the Regular Meeting Time of the Finance Committee and the Policy and Services Committee by Resolution or Ordinance

The Council of the City of Palo Alto ORDAINS as follows:

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

A. The City Council has two standing committees – the Committee on Finance and the Committee on Policy and Services. PAMC section 2.04.190. The regular meeting date, time, and place are defined in PAMC section 2.04.200. Existing law sets the start time for regular meetings at 7 p.m for these committees . PAMC section 2.04.200(a).

B. The City Council now desires to establish the regular meeting time of these standing committees by resolution or ordinance instead of codifying it in PAMC section 2.04.200.

SECTION 2. PAMC Sections 2.04.190 (Standing committees – Special committees) and

2.04.200 (Standing committee meetings) of Chapter 2.04 (Council Organization and Procedure) of Title 2 (Adminstrative Code) are hereby amended to read as follows (strikethrough is deleted, underlined is new text):

2.04.190 Standing committees - Special committees.
(a) Not later than the second regular council meeting in January, the mayor shall appoint two standing committees, consisting of three members each from the members of the council. The mayor shall appoint each council member to only one standing committee and shall appoint the chairperson of each committee. The mayor, or the vice-mayor at the request of the mayor, may act as an ex officio, voting member of each committee when one or more regular committee members are absent.
(b) The standing committees shall be designated, respectively, committee on finance and committee on policy and services, and shall meet at 7:00 p.m. in the city hall on the day as established by Section 2.04.200.
(c) Council members may attend meetings of committees of which they are not members, without participating in any manner, but only committee members or ex officio committee members shall vote in committee in accordance with subsection (a) of this section.

Item 12
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
PAMC Sections 2.04.190
and 2.04.200 to Set the
Regular Meeting Time of
the Finance Committee
and the Policy and
Services Committee by
Resolution or Ordinance

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(d) Council members who submit matters to the council which are referred to a standing committee may appear before the standing committee to which the referral has been made in order to speak as proponents of the matter. Standing committee meetings during which such referrals may be considered shall be noticed as council meetings for the purpose of enabling the standing committee to discuss and consider the matter with a quorum of the council present.
(e) In addition to standing committees the mayor may, subject to approval of the council, appoint such other special committees of council members, private citizens or both as deemed desirable and necessary to assist and advise the council in its work.

2.04.200 Standing committee meetings.
(a) Regular Meetings. Each standing committee shall meet on its designated meeting night(s) at 7:00 p.m. at the City Hall. The policy and services committee shall meet on the second Tuesday of each month and the finance committee shall meet on the first and third Tuesday of each month. The meeting time for each standing committee’s regular meetings shall be set by the City Council by ordinance or resolution. When additional meetings are necessary, the chairperson of each committee may call a special meeting as provided in subsection (b) of this section.
(b) Special Meetings. Special meetings of standing committees may be called by the chairperson with the consent of a majority of the committee's members, but a special meeting so called shall be held at City Hall, or other locations if appropriate, and forty-eight hours' notice must be given to every council member.

SECTION 3. E nvironmental Review
The Council finds that this Ordinance is not a project under CEQA Guidelines Sections 15378(b)(2) and (5) as this is an organizational change of government that will not result in direct or indirect physical changes in the environment.

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SECTION 4. Effective Date
This Ordinance shall be effective 31 days after adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

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Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 5, 2025
Report #:2504-4539
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Section

18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 70 Encina Avenue from Service Commercial (CS) Zone to Planned Community Zone (PC)

BACKGROUND
The City Council heard this item on April 14, 2025 for a first reading and approved it on a 7-0 vote. An administrative correction was made, and the ordinance is now before the City Council for a second reading.

ATTACHMENTS
Attachment A - Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 70 Encina Avenue from Service Commercial (CS) Zone to Planned Community Zone (PC) APPROVED BY:

Mahealani Ah Yun, City Clerk
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1 0160168_KB2_20250212_AY16
Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 70 Encina Avenue from Service Commercial (CS) Zone to Planned Community Zone (PC)
The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations.
(a) On March 24, 2024, Hayes Group Architecture (“Applicant”) submitted an application for Rezoning to Planned Community/Planned Home Zoning (PHZ) and Major Architectural Review to redevelop the site at 70 Encina Avenue (the “Subject Property,” more particularly described in Exhibit A) with ten condominium units, two of which would be below market rate (the “Project”).
(b) Following Staff Review, the Planning and Transportation Commission (Commission) reviewed the project on September 11, 2024 and recommended the project to the Architectural Review Board.
(c) The Architectural Review Board reviewed the project on November 7, 2024 and, following preparation of the environmental analysis, formally recommended approval of the project to the City Council on February 6, 2025.
(d) The Planning and Transportation Commission reviewed the project on February 26, 2025; and recommended approval of the project to the City Council. (e) Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder (“CEQA”). (f) The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project. (g) The City, in compliance with CEQA, determined that the project is eligible for streamlined review in accordance with CEQA Guidelines Section 15183. The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183, which evaluated the project’s consistency with the Comprehensive Plan and the Comprehensive Plan EIR, including relevant addenda. Plan level technical reports were prepared to confirm that the Comprehensive Plan EIR, including any mitigation required through that EIR, would adequately address the impacts of the proposed project. (h) The Council is the decision-making body for approval of the Planned Community Project.

Item 13
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
Section 18.08.040 of the
Palo Alto Municipal Code
(The Zoning Map) to
Change the Classification
of Property Located at 70
Encina Avenue from
Service Commercial (CS)
Zone to Planned
Community Zone (PC)

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(i) The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project proposes family- serving, ownership housing units. The existing CS zoning requires ground-floor retail and limits the square footage for residential uses to a floor area ratio of no more than 0.35 to

1. The limitation on residential housing uses and development standards was intended to apply to the shopping center, of which this site was previously a leased part. The site is zoned and designated as part of the shopping center but is no longer leased by the Town & Country Village shopping center owner and is part of a separate, adjacent parcel. In order to provide an exclusively multi-family use on this site and to achieve a floor area, lot coverage and setbacks that allow for development of the project as proposed, the proposed rezoning is necessary.
(j) Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance. (k) Rezoning of the site to Planned Community is appropriate for the reasons set forth herein. (l) The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan and compatible with existing and potential uses on adjoining sites or within the general vicinity, as set forth in the Record of Land Use Action (Exhibit B) accompanying this ordinance.

SECTION 2. Amendment of Zoning Map.

Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of Subject Property from Service Commercial (CS) to “Planned Community Zone (PC) _____”.

SECTION 3. Project Description.

The Project as a whole is described in the Development Plan, titled “Encina Housing 70 Encina Avenue, Palo Alto, CA 94301” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on February 19, 2025. With respect to the Subject Property, the project comprises the uses included in this Ordinance, depicted on the Development Plans, incorporated by reference, including the following components:
(a) Redevelopment of an existing surface parking area, as described in more detail in the Development Plan, to allow construction of a new 3-story, 19,035 sf building (1.57 FAR); to include ten (10) residential condominium units organized around a common access court that provides both vehicular and pedestrian access and site improvements. Two of the proposed units will be deed restricted to be sold at a rate affordable to households earning up to 80% of area median income.

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(b) Merger of two existing lots and subdivision into ten (10) residential condominium units through a subdivision map, which will be filed at a later date.

SECTION 4. Land Uses.
(a) The following land uses shall be permitted:
(1) Multi-family residential in accordance with the project description; (2) Accessory Uses.

SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards:

Development standards for the Subject Property shall be those conforming to the Development Plans.
(b) Parking and Loading Requirements:

The Owner shall provide parking and loading as set forth in the Development Plan. Specifically, the Owner shall provide four units with 1 space per unit and six units with 2 spaces per unit, for a total of 16 parking spaces.
(c) Modifications to the Development Plan, Land Uses and Site Development Regulations:

Once the project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) – (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance, as required by Palo Alto Municipal Code 18.38.050.
(g) Development Schedule:

The project is required to include a Development Schedule pursuant to PAMC §18.38.100. The applicant has indicated that development is anticipated to begin in October 2025 and conclude in December 2026.

Notwithstanding the above, construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services. All construction and development of the project shall be complete within 3 years of the start of construction.

SECTION 6. Public Benefits.
(a) Public Benefits
Item 13
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
Section 18.08.040 of the
Palo Alto Municipal Code
(The Zoning Map) to
Change the Classification
of Property Located at 70
Encina Avenue from
Service Commercial (CS)
Zone to Planned
Community Zone (PC)

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Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts.

The public benefit provided by the Project is two dwelling units at below market rates (“BMR”), affordable to households with income not exceeding 100% of area median income. This exceeds the base requirement in Palo Alto Municipal Code Chapter 16.65, which would require one BMR unit and the payment of in-lieu fees.

SECTION 7. Environmental Review

The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183 and confirmed that the Comprehensive Plan EIR, including any mitigation that would be addressed as required through that EIR, would adequately address the impacts of the proposed project.

SECTION 8. Effective Date

This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST: APPROVED:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Assistant City Attorney
_________________________
Mayor
_________________________
City Manager
__________________________
Director of Planning and
Development Services
Item 13
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
Section 18.08.040 of the
Palo Alto Municipal Code
(The Zoning Map) to
Change the Classification
of Property Located at 70
Encina Avenue from
Service Commercial (CS)
Zone to Planned
Community Zone (PC)

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Exhibit A Plan and Legal Description
Item 13
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
Section 18.08.040 of the
Palo Alto Municipal Code
(The Zoning Map) to
Change the Classification
of Property Located at 70
Encina Avenue from
Service Commercial (CS)
Zone to Planned
Community Zone (PC)

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Exhibit B Record of Land Use Action
Item 13
Attachment A - Ordinance
of the Council of the City
of Palo Alto Amending
Section 18.08.040 of the
Palo Alto Municipal Code
(The Zoning Map) to
Change the Classification
of Property Located at 70
Encina Avenue from
Service Commercial (CS)
Zone to Planned
Community Zone (PC)

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: May 5, 2025
Report #:2411-3799
TITLE
PUBLIC HEARING / QUASI-JUDICIAL. 4075 El Camino Way [23PLN-00202]: Adoption of an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities).

RECOMMENDATION
Staff recommends the City Council take the following actions:

1. Find the project exempt from CEQA in accordance with CEQA Guidelines Section 15301;

2. Adopt the ordinance in Attachment B, amending Planned Community Ordinance 5116; and

3. Approve the Record of Land Use Action in Attachment C based on findings and subject to conditions of approval.

EXECUTIVE SUMMARY
The applicant requests approval of an amendment to the existing Planned Community (PC) Zone District (PC-5116) to allow a 16-unit addition to the existing 121-unit assisted living facility (Palo Alto Commons). A map showing the location of the proposed project is included in Attachment A.

In accordance with the PC process, Council held an initial prescreening to provide feedback on a conceptual plan. The Planning and Transportation Commission (PTC) also reviewed a conceptual plan and provided initial feedback. Following these early hearings and staff’s review of the project, the Architectural Review Board (ARB) and PTC provided formal recommendations to Council. The ARB unanimously recommended approval of the proposed project. The PTC voted (3-2-2, Commissioners Hechtman and Templeton voting no, Commissioners Reckdahl and Lu recusing) and recommended approval of only a portion of the proposed project. Commissioners that dissented in this vote recommended approval of the project as proposed (no reduction in units).

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Staff recommends approval of the project as proposed by the applicant, as discussed further in this report. The City, acting as the lead agency, determined that the project is exempt from CEQA in accordance with CEQA guidelines Section 15301 (modifications to existing facilities).

BACKGROUND
Palo Alto Commons was originally approved in 1987 as a Planned Community (PC) project under Ordinance 3775. In 2011, the Avant building was added through Ordinance 5116, which incorporated Ordinance 3775 by reference. 1
The City Council reviewed a Prescreening application on August 7, 2023.2 Council expressed general support for the concept of adding units and provided feedback for further refinement.

Comments included a request to reduce daylight plane intrusion, explore the feasibility of a fourth story, and develop a Transportation Demand Management (TDM) plan to address parking conditions.

In response, the applicant made the following modifications:

1. Reduced the number of units facing Wilkie Way

2. Increased the total number of proposed units from 14 to 16

3. Stepped back second and third floors to reduce daylight plane encroachment

4. Submitted a draft TDM plan, which is under review by the Office of Transportation and included as a condition of approval (Attachment F)
The Planning and Transportation Commission (PTC) reviewed conceptual plans on February 28 and June 12, 2024.3 Following the initial review, Commissioners requested additional information related to the daylight plane, parking demand, and potential noise impacts. At the June 12 meeting, the PTC recommended forwarding the project to the Architectural Review Board (ARB) and encouraged consideration of the following:
•Increasing the rear setback to 20 feet to comply with PAMC 18.38.150 daylight plane standards
•Incorporating privacy glazing, screening, or alternate window placement consistent with Individual Review (IR) Guidelines
•Reducing noise impacts of the residents on the neighborhood through measures such as insulated windows
1 Ordinance 3775: https://portal.laserfiche.com/Portal/DocView.aspx?id=104198&repo=r-704298fc Ordinance 5116: https://portal.laserfiche.com/Portal/DocView.aspx?id=2179&repo=r-704298fc 2 August 7, 2023 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12606 3 February 28, 2024 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13611 June 12, 2024 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13660 Item 14
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•Enhancing privacy through strategic landscaping for adjacent residents Staff does not support adding measures to address noise. At the PTC meeting, two neighbors stated occasionally being able to hear residents of Palo Alto Commons from their backyards.

The PTC considered incorporating this into their motion, but ultimately did not gain majority support to do so. In June 2024, the California Supreme Court heard Make UC A Good Neighbor v. Regents of the University of California, and in their decision on the case determined that "social noise," from residents of a potential project is not considered a significant environmental effect and therefore not subject to CEQA analysis for residential projects. As a part of this determination, Staff cautions against requiring any measures designed to insulate against “social noise”.

The ARB held public hearings on July 18 and October 17, 2024.4 The applicant modified landscape screening in response to individual neighbor feedback, revised window placement and sizing to comply with Objective Design Standards and finalized the TDM plan. The ARB concluded that the project met privacy standards and was appropriately scaled to its surroundings, including with respect to daylight plane compliance. On October 17, the ARB unanimously recommended approval without further changes.

The project returned to the PTC on December 11, 2024, for further review as required under the PC process.5 The discussion focused on daylight plane compliance and parking. The Commission voted (3-2-2) to recommend approval of only the seven units not facing Wilkie Way and denial of the nine rear-facing units and the proposed ground-floor office space. The motion also included recommendations to:
•Return the TDM plan to the PTC for further review
•Revise Findings to reflect the modified recommendation •Remove past public benefits from consideration under the current PC Ordinance Commissioners supporting the motion cited PAMC Chapter 18.38, noting its more restrictive daylight plane provisions for PC projects near single-family homes. Dissenting Commissioners expressed support for the project as proposed. Commissioners Reckdahl and Lu recused due to their recent election to Council.

Project Description
The applicant requests an amendment to the existing PC Zone District (PC-5116) to allow 16 additional assisted living units and 172 square feet of staff office space within the Palo Alto Commons facility. Nine of the proposed units would face the adjacent single-family neighborhood.
4 July 18, 2024 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13877 October 17, 2024 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13919 5 December 11, 2024 Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13772 Item 14
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Requested Entitlements, Findings and Purview:

The following discretionary applications are being requested and subject to PTC purview:
•Planned Community/Planned Housing Zone (PC/PHZ): As defined in PAMC 18.38, this zoning process allows for comprehensively planned developments that offer public benefits not otherwise achievable under existing zoning. Applications must be reviewed by the PTC and ARB before final action by the City Council.

ANALYSIS
The proposed project has been analyzed in accordance with all relevant plans, policies, and regulations adopted by the City. Staff’s review finds the project consistent with all relevant plans, policies, and regulations, as detailed throughout this report, and therefore recommends approval of the project as proposed. The ARB concurred and their recommendation is consistent with the staff recommendation. The PTC differed, and their recommendation reduces the project scope from the staff recommendation.

Neighborhood Setting and Character
Palo Alto Commons is on the same parcel as the Avant Independent Living Facility. The neighborhood includes residential (RM-20) to the west, single-family (R-1) residential to the north, and the Goodwill store (CN) to the east. Across El Camino Way, West Meadow Drive, and El Camino Real there are other multi-family and commercial uses. Heights in the area range from one to three stories and include a variety of architectural styles. The proposed addition would not change the overall height of the building.

Consistency with the Comprehensive Plan, Area Plans, and Guidelines6 The site has a Comprehensive Plan land use designation that includes both Multiple-Family Residential, for a portion of the site adjacent to single-family, and Neighborhood Commercial for the portion towards El Camino Way. Multiple-Family Residential land use designation permits densities ranging from 8 to 40 units and 8 to 90 persons per acre and indicates that densities should be on the lower end of the scale next to single-family residential areas.

Neighborhood Commercial land use designation includes shopping centers as well as street- front stores serving the immediate neighborhood. Higher density residential and mixed-use projects may be allowed in specific locations.

Although assisted living units are not counted toward the City’s regional housing needs assessment or RHNA, they nonetheless have many characteristics of a "residential” use. The project provides senior living facilities that align with the multiple-family and neighborhood commercial land use designations. The project includes the addition of senior living units to an existing facility. Therefore, no change is proposed to the existing land use. 6 The Palo Alto Comprehensive Plan is available online: bit.ly/PACompPlan2030 Item 14
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On balance, staff find that the project is consistent with the policies in the Comprehensive Plan and therefore fulfills the goals of the Plan as well. A detailed staff review of the project’s consistency with the Comprehensive Plan is provided in Attachment C.

Zoning Compliance7
Attachment D provides a detailed review of the proposed project’s consistency with the existing zone district, PC-5116. Because the existing Planned Community zone district ties to the specific existing development, which included specifications for the number of allowed units, the proposed project modifications, which add 16 units to the site plan, would require an amendment to the existing PC Ordinance.

The following key modifications are proposed to the existing PC Ordinance and associated development plan:
•The density and provided units would increase by 16 units; •The allowed lot coverage and floor area would increase to accommodate the approximately 6,890 square foot addition;
•The minimum setback would decrease from 8 feet to 6 feet for the southwestern property line adjacent to Goodwill; and
•The parking ratio provided would reduce from 0.46 spaces per unit (1.16 spaces per 2.5 beds) to 0.41 spaces per unit (1.01 spaces per 2.5 beds), as no additional spaces are being provided. However, this is consistent with the standard code requirement for this use, which is one space per 2.5 beds.

Daylight Plane
The applicable daylight plane regulation has been a point of contention throughout the application review process for area residents. The original PC (PC-3775), incorporates the R-1 side daylight plane as the standard requirement, measured at 10 feet vertical and a 45 degree angle at the property line. Staff believes the R-1 side daylight plane was chosen at the time because the property contains street frontage on West Meadow Drive, making the side adjacent to the Wilkie Way neighbors an interior side yard. The proposed addition complies with the R-1 side daylight plane.

In its review of the project, the ARB agreed that this daylight plane standard was appropriate for the project this determination and that the proposed scale of the addition overall was compatible to the surrounding neighborhood.

However, several PTC Commissioners disagreed and favored a more restrictive daylight plane standard, citing PAMC Chapter 18.38 daylight plane for PC projects that are less than 60% residential and adjacent to single-family neighborhoods, or the PAMC Chapter 18.12 R-1 rear daylight plane as more appropriate standards. This more restrictive standard would require a 7 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode Item 14
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minimum 10 foot setback from the R-1 zoned property with an approximately 30% daylight plane starting at ten feet in height. The proposed project does not meet this more restrictive standard. The PTC discussed other nuances related to the daylight plane but ultimately, the original PC ordinance established the standard that staff used to evaluate the proposed addition. The City Council, in its review of the project may consider the appropriateness of the standard used to evaluate the project.

Privacy
Many of the neighboring residents along Wilkie Way have expressed concerns regarding privacy, specifically from the nine units along the rear of the building. Proposals for privacy treatment were described as balancing the need for privacy with livability for the residents.

Through the review process, staff and the ARB encouraged modifications to the design to conform to the objective design standards for privacy. All of these units in the current plans provide windows that meet the Objective Design Standards in PAMC 18.24.050(2)(C) and (D), primarily utilizing five-foot sill heights or having the angles at a 45-degree angle to the property line, or by being more than 30 feet away from the nearest window it is facing. Boardmembers noted a perspective that the zig-zag design of the building and the proposed tree planting in particular effectively address privacy.

Noise
The Noise Study (linked in Attachment F, and CEQA document Attachment A) prepared for the project found the existing Palo Alto Commons building and proposed addition comply with PAMC Chapter 9.10 Noise.

As a part of the public hearing process, a neighbor identified a noise issue associated with the water heater system at the Avant building. A Code Enforcement case is open and a building permit application to address the issue is under review. Staff does not consider this case as relevant to the proposed project scope, as it is located in a different building.

Shade and Landscaping
Neighbors have expressed concern about an increase in shade from the building additions and the landscaping. In response to PTC and ARB feedback, the applicant held a neighborhood meeting on August 22, 2024, to discuss landscaping with individual neighbors. Based on feedback from the neighbors, six evergreen trees and two deciduous trees have been proposed to fill gaps in the existing landscape screen. Sheet A1.6 of the plans in Attachment F show the revised landscaping plan. The plans also include an extensive shadow study (sheets A5.21- A5.24) showing an increase in shade would be minimal and limited to the winter months.

Public Benefit
The project provides additional assisted living units, providing services to more seniors who need a high level of care. Although these units are not considered as dwelling units towards the City’s RHNA, they provide a safe place for seniors to live. These units themselves are therefore Item 14
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proposed as the public benefit associated with this PC amendment and were considered so during the initial PC application.

PC-5116 for the existing development provided three public benefits: 1) rental senior assisted housing (with provisions for aging in place); 2) Roadway, pedestrian and bus stop improvements; and 3) A contribution of $100,000 to Avenidas to be ear-marked for the age at home program for low-income seniors.

The PTC asked for these items to be removed from the PC Ordinance as the right of way improvements and Avenidas payment were all completed over ten years ago. However, Staff recommends they be maintained as a part of the record, by incorporating them into the PC Ordinance.

Multi-Modal Access and Parking
Neighbors have consistently commented on parking and traffic impacts. Additionally, the PC- 5116 and preceding PC-3775 conditions of approval both required TDM plans that were not sufficiently maintained in the past. As such, a new TDM plan has been prepared and will be monitored as a condition of approval, with specific deliverables that must be provided to the City to document compliance. Elements from the TDM plan have already been implemented, and annual reporting will begin one year from project approval. Typically, a TDM plan is prepared to allow a reduction in the number of parking spaces provided or to reduce peak single occupancy vehicle trips. However, the property contains a sufficient number of spaces for the expanded use. Therefore, this TDM plan facilitates transit alternatives, and is focused on better utilization of existing spaces, including providing direction for staff and visitors to park on site instead of in the neighborhood. The applicant has provided a revised TDM and a new Parking Plan (Attachment F). The Parking Plan reinforces the parking procedures the applicants have provided verbally at previously meetings, and the TDM plan, and provides assurance that parking on adjacent streets is discouraged moving forward. Compliance with the TDM plan and Parking plan are included in the Conditions of Approval.

Conformance with Prior Approvals and Existing Ordinance As a part of the project analysis, it came to the attention of Staff that the existing conditions of Ordinance 3775 have not been consistently applied over the years. In addition to the TDM plan as discussed, Palo Alto Commons is required to provide preference to residents of Palo Alto and their families (Ord. 3775 Section 3(a)(9)), as well as an annual report regarding building occupancy (Ord. 3775 Section 3(d)). All prior conditions apply to the existing and proposed project.

Specifically, the annual report requires the following data to be disclosed:
•Occupancy/vacancy status
•Number and age of occupants
•Number of employees
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•Number of residents and employees who use parking spaces •Copy of Renewal License for Residential Care Facility
Staff recommends Council consider the purpose and benefit of this information. If annual reports are considered necessary, then Staff recommends removing “age of occupants” from the annual report requirements for privacy reasons. The Planning Department does not have records of an annual report being submitted in any prior years, however staff acknowledges this is out of compliance with the Conditions of Approval, and Palo Alto Commons shall provide annual reports moving forward, unless this requirement is modified or removed.

Consistency with Application Findings
Staff analysis finds that the proposed project is consistent with the relevant Planned Community and Architectural Review findings required, as detailed in PAMC Chapter 18.38, as detailed in Attachment C (record of land use action).

In summary, the PC request supports the existing use and expands the senior housing public benefit. The proposed project is an incremental expansion of the existing use, which appears compatible with the neighborhood based on the criteria discussed in this report. The site is shared with an independent senior living apartment building, and other surrounding uses are currently mostly single-family houses, as well as condominiums and the Goodwill store. The character of the neighborhood will remain the same, and improvements are being made to privacy landscaping bordering the single-family neighborhood. The proposed addition is consistent with the existing height and existing PC daylight plane, which combined with new landscaping, preservation of existing landscaping, and privacy measures for new windows, will maintain an appropriate mass and character adjacent to the residential neighborhood. The new assisted living and memory care units will provide an important service to seniors in the community. The project proposes high-quality materials in a variety of colors appropriate for a residential building, and the variety of colors helps break up the massing. The new sloped roof areas will also add visual interest and enhance the residential feel. The design is functional and proposes improvements to existing parking conditions through the implementation and monitoring of a TDM plan.

FISCAL/RESOURCE IMPACT
Processing of this application has no fiscal impact as applicants are responsible for staff and consultant costs through applicable fees through the deposit-based cost recovery program. The proposed addition requires payment of development impact fees, which are currently estimated at $382,000.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at Item 14
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least ten days in advance. Notice and postcard mailing in advance of a public hearing for this project was published in the Daily Post on April 23, 2025, which is 12 days in advance of the meeting.

Public Comments
All previously submitted written comments on this project are included in Attachment E. In general, the key concerns raised include:
•Loss of privacy
•Reduced access to natural sunlight
•Insufficient parking
•Opposition to any zoning code exceptions for the proposed addition •Concern that WellQuest, as a for-profit entity, does not prioritize the interests of neighboring residents
•Potential negative impacts on property values and overall quality of life •Questions about compliance with conditions of approval included in PC-3775

ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The City, acting as the lead agency, has determined that the project is exempt from CEQA in accordance with CEQA Guidelines Section 15301 (existing facilities). Attachment F summarizes the project’s eligibility for a Class 1 exemption and why none of the exceptions to the exemptions apply to this project.

ALTERNATIVE ACTIONS
In addition to the recommended action, City Council may:

1. Approve the project with modified findings or conditions;

2. Continue the project to a date (un)certain; or

3. Deny project based on revised findings.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft PC Ordinance
Attachment C: Draft Record of Land Use Action
Attachment D: Zoning Consistency Analysis
Attachment E: Public Comment
Attachment F: Link to Project Plans and Environmental Analysis APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 14
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Palo Alto
4075 El Camino Way
PC-5116
Attachment A
4075 El Camino Way
Location Zoning Map

0.17 ()

0.35 0.7
Miles
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Map

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* NOT YET APPROVED *
0290163_kb2_20241204_ms29
1 Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Amend PC Planned Community Zone (PC-5116) to Allow an Addition to an Existing Senior Assisted Living Facility
The Council of the City of Palo Alto ORDAINS as follows:

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

A. On March 21, 2011, the City Council adopted Ordinance No. 5116, creating PC Planned Community 5116.

B. On August 9, 2023, Irwin Partner Architects on Behalf of Wellquest Living submitted an application for an Ordinance Amending Planned Community Zone District 5116 (PC-5116) to allow a 16-Unit addition and 172 square feet of support space to an existing 121-unit Assisted Living and Memory Care Facility (“The Project”) at 4041 and 4075 El Camino Way (the “Subject Property”).

C. Following Staff Review, the Planning and Transportation Commission (Commission) reviewed the project on February 28, 2024 and June 12, 2024 and recommended the project to the Architectural Review Board.

D. The Architectural Review Board reviewed the project on July 18, 2024 and October 17, 2024; and recommended approval of the project to the City Council.

E. The Planning and Transportation Commission reviewed the project on December 11, 2024 and moved to advance the project to Council, recommending approval of only the seven units which do not face Wilkie Way and denial of the nine units and ground floor office space which faces towards the neighborhood. The motion also recommended returning the Transportation Demand Management plan to the Commission for approval, revising the Findings to reflect the Commission’s recommendation, and removing consideration of past public benefits from the PC Ordinance.

F. Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder (“CEQA”).

G. The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project.

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2 H. The City, in compliance with CEQA, determined the project to be Categorically Exempt from CEQA per Section 15301 of the CEQA Guidelines (Existing Facilities).

I. The Council is the decision-making body for approval of the Planned Community Project.

J. The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project modifies an existing Planned Community Project (PC 5116) and includes 16 additional units, beyond the 121 units approved in ordinance 5116, and associated modifications to the development plan in accordance with this change.

K. Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance.

L. The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan, and compatible with existing and potential uses on adjoining sites or within the general vicinity.

SECTION 2. Amendment of Zoning Map.

Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of the property formerly zoned as PC Planned Community Zone 5116 from PC Planned Community Zone 5116 to “PC Planned Community Zone _____”.

SECTION 3. Project Description.

The Project as a whole is described in the Development Plan titled “PALO ALTO COMMONS Wellquest Living” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 4, 2024. The Development Plan and approved supplemental materials and conditions included as part of Ordinance 5116 and Ordinance 3775 are incorporated into this ordinance by reference. With respect to the Subject Property, the project comprises the uses included in this Ordinance, depicted on the Development Plans, incorporated by reference, including the following components:
(a) Modifications to an existing 121-unit assisted living and memory care facility, approved as part of PC Planned Community 5116. The additions would include construction of 16 additional assisted living units (approximately 6,720 square feet) and 172 square feet of additional support space.

SECTION 4. Land Uses.
(a) The following land uses shall be permitted:

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3 1. Senior Housing;

2. Eating and Drinking Services for use by residents, employees, and their guests;

3. Personal Services for use by residents, employees, and their guests;

4. Retail Services for use by residents, employees, and their guests;

5. Recreational Facilities for use by residents, employees, and their guests;

6. Administrative Offices for administration of Palo Alto Commons;

7. Medical care for residents as is customarily associated with senior assisted living facilities; and

8. Accessory Uses.

SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards:

Development standards for the Subject Property shall be those conforming to the Development Plan.
(b) Parking and Loading Requirements:

The Owner shall provide parking and loading as set forth in the Development Plan and Transportation Demand Management Plan, entitled “Palo Alto Commons 4075 El Camino Way Transportation Demand Management Plan,” uploaded to Accela on October 4, 2024.
(c) Modifications to the Development Plan, Land Uses and Site Development Regulations:

The project is required to include a Development Schedule pursuant to PAMC §18.38.100. The approved Development Schedule is set forth in the Applicant Item 14
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4 Project Description Letter, and anticipates commencing in April 2025 and concluding in October 2026.

Construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services.

SECTION 6. Public Benefits.
(a) Public Benefits:

Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts.

The public benefit provided by the Project is providing a safe place for Palo Alto residents and other seniors to age and making improvements to the existing facility to expand and improve these services.
(b) Monitoring of Conditions and Public Benefits:

Not later than three (3) years following issuance of a certificate of occupancy and at least every three (3) years thereafter, the Owner shall request that the City review the Project for compliance with the PC district regulations and the conditions of approval for the associated development. The applicant shall provide adequate funding to reimburse the City for these costs. If conditions or benefits are found deficient by staff, the applicant shall correct such conditions in not more than 90 days from notice by the City. If correction is not made within the prescribed timeframe, the Director of Planning and Development Services will schedule review of the project before the Planning and Transportation Commission and Council to determine appropriate remedies, fines or other actions.

SECTION 7. Environmental Review.

The project would not result in a substantial expansion of the current use and is therefore eligible for a categorical exemption from CEQA under Section 15301 of the CEQA Guidelines (Existing Facilities).
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5 SECTION 8. Effective Date.

This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
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ORDER NO. : 0623019724

EXHIBIT A
The land referred to is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows:

PARCEL ONE:

A portion of Lots 4, 5, 6 and 10, as shown upon that certain map entitled, "The J.J. Morris Real Estate Co. Subdivision of the Cogan Tract", which map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on November 5, 1907 in Book "M" of Maps, Page 3, and all of Parcel 1, as shown on Parcel Map filed February 24, 1989 in Book 596 of Maps, at Page(s) 36, Santa Clara County Records and more particularly described as follows:

Beginning at a point on the Northerly line of West Meadow Drive (70' wide) (formerly Diss Rd.), said point also being the Southeasterly corner of Parcel 1, as shown on Parcel Map filed February 24, 1989 in Book 596 of Maps, at Page(s) 36;
Thence along the Northerly line of West Meadow Drive North 33° 31' 45" East, 91.03 feet to the Easterly corner of said Parcel 1;
Thence leaving Northerly line of West Meadow Drive along the Northerly line of said Parcel 1, North 56° 30' 25" West, 449.00 feet to the Northerly corner of said Parcel 1, said point also lying on the dividing line between said Lots 10 and 11 of said J.J. Morris Subdivision; Thence along said dividing line between said Lots 10 and 11, North 33° 31' 45" East, 20.22 feet to the most Southerly corner of that certain parcel of land conveyed from Ida Catherine Miller, also known as Ida C. Miller to Tom L. Jones et ux, by Deed dated January 22, 1968 and recorded February 8, 1968 in Book 8019 of Official Records, Page 539, Santa Clara County Records;
Thence along the Southwesterly line of said parcel of land conveyed to Tom L. Jones et ux, North 56° 31' 00" West, 120.00 feet to the most Westerly corner thereof, said point also lying on the dividing line between Lots 9 and 10 of said J.J. Morris Subdivision; Thence along said dividing line between Lots 9 and 10 of said J.J. Morris Subdivision South 33° 31' 45" West, 78.00 feet to the common corner for Lots 5, 6, 9 and 10 of said J.J. Morris Subdivision;
Thence along the dividing line between said Lots 6 and 9 North 56° 25' 15" West, 16.00 feet; Thence leaving said last named dividing line and parallel with the dividing line between said Lots 5 and 6, South 33° 31' 45" West, 150.91 feet to the Northerly line of that certain parcel as acquired by the City of Palo Alto, a municipal corporation, by Final Judgment of Condemnation Action No. P13260 Issued Out of Line, Superior Court of the State of California in and for the County of Santa Clara, a certified copy of which was recorded June 26, 1968 in Book 8170 of Official Records, Page 298, Santa Clara County Records; Thence, along the Northerly boundary of said parcel as acquired by the City of Palo Alto, along a non-tangent curve to the left having a radius of 112.00 feet, a central angle of 30° 29' 56", a tangent length of 30.53 feet, the long chord of which bears South 24° 32' 12" East for a distance of 58.92 feet with a radial line in of North 80° 42' 46" East and a radial line out of South 50° 12' 50" West for an arc length of 59.62 feet to a point; Thence South 33° 31' 45" West, 0.77 feet to the Northeasterly line of El Camino Way, formerly

LEGAL DESCRIPTION
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Thence along said Northeasterly line of El Camino Way South 56° 25' 15" East, 326.10 feet to the corner of said Parcel 1, as shown on Parcel Map filed February 24, 1989 in Book 596 of Maps, at Page(s) 36, said corner is also the Southernmost corner of Parcel A, as shown on Parcel Map filed September 26, 1986 in Book 565 of Maps, Page 19, Santa Clara County Records;
Thence along the lines of said Parcel 1, as shown on Parcel Map filed February 24, 1989 in Book 596 of Maps, at Page(s) 36 North 33° 33' 21" East, 150.42 feet and South 56° 25' 15" East, 208.83 feet to the point of beginning.

This legal description is pursuant to "Certificate of Compliance (Lot Line Adjustment - Merger)" recorded July 26, 2012 as Instrument No. 21764853 of Official Records.

PARCEL TWO:

A non-exclusive easement for ingress and egress and the installation and maintenance of public utilities over the Northwest 9 feet of Parcel A, as reserved in the Deed from Rufus A. Tracy Jr., et al to Rick’s Swiss Chalet, a California corporation, recorded August 18, 1970 in Book 9023 at

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APN: 132-43-177
San Francisco-San Jose Road;
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APPROVAL NO. 2024-____
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 4075 El Camino Way ADOPTION OF AN ORDINANCE TO AMEND PLANNED COMMUNITY 5116 to PLANNED COMMUNITY (PC) _______ (FILE NO. 23PLN-00202)
On May 5, 2025, the City Council of the City of Palo Alto (“City Council”) adopted Ordinance ____ approving an amendment to Planned Community (PC) 5116 to allow a 16-Unit addition to an existing 121 unit Assisted Living and Memory Care Facility (Palo Alto Commons). In approving the application, the Council make the following findings, determination and declarations:

SECTION 1. Background.

A. Irwin Partner Architects on Behalf of Wellquest Living Requests Approval of a an Ordinance Amending Planned Community Zone District 5116 (PC-5116) to allow a 16-Unit addition and 172 sf of support space to an existing 121-unit Assisted Living and Memory Care Facility. (“The Project”).

B. The Project site is located on a 110,642 sf (2.54-acre) site on APN 132-43-177 located at 4075 El Camino Way. The Site is designated on the Comprehensive Plan land Use Map with a split land-use designation of Multi-family and Community Neighborhood and is Zoned Planned Community 5116.

C. On August 7, 2023 City Council conducted a prescreening review of the proposed legislative actions in accordance with PAMC 18.79.

D. On February 28, 2024 Planning and Transportation Commission (PTC) reviewed the project held a duly noticed public hearing and recommended the project return to the PTC. On June 12, 2024 the PTC held a duly noticed public hearing and recommended that the applicant submit the proposed plans to the Architectural Review Board based on the conceptual design and proposed project in accordance with the Planning Community Rezoning process set forth in 18.38.

E. Following PTC and staff review, on July 18, 2024 the ARB held a public hearing to review the project design and recommend modifications in accordance with the ARB findings for approval. On October 17, 2024 ARB held a duly noticed public hearing and recommended approval.

F. On December 11, 2024 PTC held a duly noticed public hearing and recommended approval of only the seven units which do not face Wilkie Way, and to recommend denial of the other nine units and ground floor office space which faces towards the neighborhood.

G. On May 5, 2025, City Council held a duly noticed public hearing, at which evidence was presented and all person were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures. After hearing public testimony, the Council voted to _________the project subject to the conditions set forth in Section 6 of this Record of Land Use Action.

SECTION 2. Environmental Review. On May 5, 2025, the City Council, as the lead agency for the Project, has determined that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 because it includes minor modifications to an existing building that involves negligible expansion of use. A document analyzing the project’s Item 14
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eligibility for a categorical exemption was prepared. The document is available on file with the Planning and Development Services department and on the project webpage, as an attachment to the May 5, 2025 Staff Report.

SECTION 3. Planned Community Findings
Finding #1: The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development.

The project is consistent with Finding #1 because:

The proposed project amends the existing Planned Community zoning in order to accommodate 16 additional Assisted Living units. Because the existing PC 5116 specifies the exact number of units to be constructed on the site (121), modification of the zoning ordinance is necessary to reflect the proposed unit count.

Finding #2: Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. In making the findings required by this section, the planning commission and city council, as appropriate, shall specifically cite the public benefits expected to result from use of the planned community district.

The project is consistent with Finding #2 because:

PC 5116 provides three public benefits offered for the existing Palo Alto Commons Development: 1) rental senior assisted housing (with provisions for aging in place); Roadway, pedestrian and bus stop improvements; and 3) A contribution of $1000,000 to Avenidas to be ear-marked for the age at home program for low-income seniors. development. Similar to the existing development, the public benefit for the proposed amendment would be addition of these 16 rental assisted living units, which will provide services to more seniors who need a high level of care. Although these units are not considered as dwelling units towards the Regional Housing Needs Allocation (RHNA), they provide a safe place to live for seniors.

Finding #3: The use or uses permitted, and the site development regulations applicable within the district shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with existing and potential uses on adjoining sites or within the general vicinity.

The project is consistent with Finding #3 because:

This project is consistent with the Palo Alto Comprehensive Plan, as described further in Architectural Review Finding #1 below. The proposed project is a negligible expansion of the existing use, which is compatible with the neighborhood. The site is shared with an independent senior living apartment building, and other surrounding uses are currently mostly one- to two-story single-family houses, as well as condominiums and the Goodwill store. The character of the neighborhood will remain the same, and improvements are being made to privacy landscaping bordering the single-family neighborhood.

SECTION 4. Architectural Review Findings
Finding #1: The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides.

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The project is consistent with Finding #1 because:

In conformance with the following Comp Plan Goals and Policies, the project will include high quality design compatible with surrounding development.

Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan
The Comprehensive Plan land use designation for
the site is a split land use that includes both
Multiple Family Residential and Neighborhood
Commercial.

The project maintains the existing use of
Assisted Living.

Land Use Element
Policy L-1.3 Infill development in the urban
service area should be compatible with its
surroundings and the overall scale and character
of the city to ensure a compact, efficient
development pattern.

This project proposes to expand an existing
facility, in a manner that is compatible with the
neighborhood and will improve the services
provided.

Policy L-2.11 Encourage new development and
redevelopment to incorporate greenery and
natural features such as green
rooftops, pocket parks, plazas and rain gardens.

As a part of the project, landscaping is being
improved to provide better privacy and more
greenery.

Policy L-6.1 Promote high-quality design and site
planning that is compatible with
surrounding development and public
spaces.

The proposed building additions will meet the
high-quality standards of the Architectural Review
Board.

Policy L-6.7 Where possible, avoid abrupt
changes in scale and density between residential
and non-residential areas and between
residential areas of different densities. To
promote compatibility and gradual transitions
between land uses, place zoning district
boundaries at mid-block locations rather than
along streets wherever possible.

The proposed addition does not add additional
height to the building, which borders a single-
family residential neighborhood. The new
windows are proposed with privacy measures and
privacy landscaping is being added to and/or
maintained.

Policy L-6.8 Support existing regulations that
preserve exposure to natural light for single
family residences.

The proposed addition complies with the R-1 side
yard daylight plane that was initially applied to
the existing building and adopted in PC Ordinance
3775. A shadow study was prepared that showed
the increases in shadows as a result of the
addition would be minimal.

Transportation Element
Policy T-1.2 Collaborate with Palo Alto employers
and business owners to develop, implement and
expand comprehensive programs like the TMA to
reduce single-occupant vehicle commute trips,
including through incentives.

In keeping with this policy and the related policy
programs, a TDM plan will reduce the number of
single-occupant vehicle employee trips.

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Policy T-5.11 Work to protect residential areas
from parking impacts of nearby businesses and
uses, recognizing that fully addressing some
existing intrusions may take time.

The proposed TDM plan and parking plan are
expected to minimize parking impacts of Palo Alto
Commons on the nearby neighborhood.

As an amendment to a Planned Community, adoption of the zoning ordinance to allow for the proposed modifications to the development, and specifically the total number of units would ensure that the project is in compliance with the zoning ordinance in accordance with the provisions set forth in the municipal code. No other design guidelines or documents apply to this location.

Finding #2: The project has a unified and coherent design, that:
a. creates an internal sense of order and desirable environment for occupants, visitors, and the general community,
b. preserves, respects and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant, c. is consistent with the context-based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations,
e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas.

The project is consistent with Finding #2 because:

This project balances adding new units to the existing building, while making improvements to the existing operations. The new TDM plan will improve parking and vehicle circulation for occupants, visitors, and staff. The proposed addition is consistent with the existing height and existing PC daylight plane, which combined with new landscaping and privacy measures for new windows, will maintain an appropriate mass and character adjacent to the residential neighborhood. The new assisted living and memory care units will provide an important service to seniors in the community.

Finding #3: The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area.

The project is consistent with Finding #3 because:

The project proposes horizontal siding in a variety of colors, including gray, blue, and khaki, with brown awnings, and white railings. This palette is appropriate for a residential building, and the variety of colors helps break up the massing. The change from white trim to brown trim helps to visually minimize the height, while white emphasizes it. Existing balcony railings will remain, and balcony awnings will be replaced in the new color scheme.

New sloped roof area will also add visual interest and enhance the residential feel. The corners will be finished in a manner that meets the requirements of the Architectural Review Board.

Finding #4: The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building’s necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.).

The project is consistent with Finding #4 because:

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Functional operations of this building is important because the building has multiple shifts of approximately 50 employees. The TDM plan will help manage parking on site and encourage staff and visitors to take alternative modes of transportation through provisions such as the addition of bicycle parking. Residents are not expected to drive vehicles. The existing number of parking spaces is sufficient for the proposed number of assisted living beds, consistent with the zoning code requirements.

Finding #5: The landscape design complements and enhances the building design and its surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained.

The project is consistent with Finding #5 because:

The project primarily maintains existing landscaping. No trees are proposed for removal. An additional 8 trees, four Tupelo and four Forest Pansey Redbud are proposed to fill gaps in the existing screening. While normally evergreen trees are preferred for privacy, deciduous trees are proposed at the request of neighbors who would like to minimize additional shade in their backyards. Proposed trees are low to medium water use. Windows on the new addition were also designed in a manner that respects privacy of adjacent neighbors including higher sill heights and angling of windows to reduce views into neighboring yards.

Finding #6: The project incorporates design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning.

The project is consistent with Finding #6 because:

In accordance with the City’s Green Building Regulations, the building will satisfy the requirements for CALGreen Mandatory + Tier 2.

SECTION 5. Development Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by the applicant titled Palo Alto Commons, Wellquest Living, 4075 El Camino Way, Palo Alto, CA 94306, consisting of 79 pages, uploaded to Accela Citizen Access on October 4, 2024, except as modified to incorporate the conditions of approval in Section 6. A copy of these plans is on file in the Department of Planning and Community Development. The conditions of approval in Section 6 shall be printed on the cover sheet of the plan set submitted with the Building Permit application.

SECTION 6. Conditions of Approval.

PLANNING DIVISION

1.CONFORMANCE WITH PLANS: Construction and development shall conform to the approved plans entitled, " Palo Alto Commons, Wellquest Living, 4075 El Camino Way, Palo Alto, CA 94306” uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 4, 2024, as modified by these conditions of approval.

2.BUILDING PERMIT: Apply for a building permit and meet any and all conditions as contained in this document.

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3.BUILDING PERMIT PLAN SET: A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit.

4.PROJECT MODIFICATIONS: All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention.

5.ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If within such one/two years period, the proposed use of the site or the construction of buildings has not commenced, the Planning entitlement shall expire. Application for a one year extension of this entitlement may be made prior to expiration.

6.LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary.
a. The screening landscaping is developed in concert with neighbor preferences and Architectural Review findings. No screening landscaping shall be altered without approval from the Director of Planning and Development Services.

7.NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on commercial property, a noise level more than eight dB above the local ambient at any point outside of the property plane. All noise producing equipment shall be located outside of required setbacks.

8.OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise.

9.SIGN APPROVAL NEEDED. No signs are approved at this time. All signs shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning.

10.TRASH ROOM. The trash room shall be used solely for the temporary storage of refuse and recycling that is disposed on a regular basis and shall be closed and locked during non-business hours.

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11.REFUSE. All trash areas shall be effectively screened from view and covered and maintained in an orderly state to prevent water from entering into the garbage container. No outdoor storage is allowed/permitted unless designated on the approved plan set. Trash areas shall be maintained in a manner to discourage illegal dumping.

12.UTILITY LOCATIONS: In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. In no case shall a pipeline be placed within 10 feet of a proposed tree and/or tree designated to remain.

13.ESTIMATED IMPACT FEE: Development Impact Fees, currently estimated in the amount of $381,959.69 shall be paid prior to the issuance of the related building permit. Fees are subject to change per annual Municipal Fee Schedule.

14.IMPACT FEE 90-DAY PROTEST PERIOD. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM

CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-day period has begun in which you may protest these requirements. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6.

15.INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

16.FINAL INSPECTION: A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Emily Kallas at [email protected] to schedule this inspection.

BUILDING
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17. A building permit is required for the scope of work shown.

18. At building permit submit the following:
a. Structural calculations
b. Green building compliance
c. T24 Energy calculations
d. Complete MEP plans
e. Accessible building elements (i.e, elevator, bathrooms, etc.) and onsite (i.e., accessible route from public sidewalk, bus stop, entrances, etc.)

19. Refer to this link for additional submittal requirements:
https://www.cityofpaloalto.org/files/assets/public/v/3/development-services/building- division/checklists/simplified/c1-new-comm-shell-checklist-07062023.pdf

PUBLIC WORKS ZERO WASTE

20. WellQuest will need to have the bins pulled out to within 25' of the gate. Otherwise GreenWaste of Palo Alto pull out charges will apply. Please add a note to the plans to specify how the bins will be pulled to the pick up area.

21. Ensure the refuse staging area can house three - 4 cubic yard bins plus three - 96 gallon carts. Please show bins and carts to scale in the staging area.

22. Refuse truck pull-out spot shall contain signage notifying tenants and other users that parking is not allowed during trash pickup days.

23. The following comments below are part of the Palo Alto Municipality Code. If your scope of work includes internal and external bins then cut-sheets for the color-coded internal and external containers, related color-coded millwork, and it’s colored signage must be included in the building plans prior to receiving approval from Zero Waste. Please see below for more details.

As per Palo Alto Municipal Code 5.20.108 the site is required to have color-coded refuse containers, related color-coded millwork, and colored signage. The three refuse containers shall include recycle (blue container), compost (green container), and garbage (black container). Applicant shall present on the plan the locations and quantity of both (any) internal and external refuse containers, it’s millwork, along with the signage. This requirement applies to any external or internal refuse containers located in common areas such as entrances, conference rooms, open space, lobby, garage, mail room, gym, and etc. except for restrooms, copy area, and mother’s room. Millwork to store the color-coded refuse containers must have a minimum of four inches in height worth of color-coding, wrapping around the full width of the millwork. Signage must be color coded with photos or illustrations of commonly discarded items.

Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. Copy area must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). Mother’s room must minimally have a green compost container and black landfill container. Please refer to PAMC 5.20.108 and the Internal Container Guide. Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies Item 14
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of these signage can be found on the Zero Waste Palo Alto’s website, https://www.cityofpaloalto.org/Departments/Public-Works/Zero-Waste/What-Goes- Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, Greenwaste of Palo Alto, (650) 493-4894.

PUBLIC WORKS ENGINEERING

24. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

TRANSPORTATION

25. TDM PROGRAM AND ANNUAL REPORTING REQUIREMENT: The applicant shall abide by the Final Transportation Demand Management (TDM) plan, entitled “Palo Alto Commons 4075 El Camino Way Transportation Demand Management Plan” uploaded to Accela on April 9, 2025 to the satisfaction of the Director of Planning and Development Services. The TDM plan includes measures and programs to achieve a reduction in single-occupancy vehicle trips to the site by a minimum of 20%, in conformance with the City’s Comprehensive Plan. The TDM plan includes an annual monitoring plan to document mode split and trips to the project site. The TDM annual report shall be submitted to the Chief Transportation Official, beginning one year from the date of Ordinance approval. Monitoring and reporting requirements may be revised in the future if the minimum reduction is not achieved through the measures and programs initially implemented. Projects that do not achieve the required reduction may be subject to daily penalties as set forth in the City’s fee schedule.

26. PARKING PLAN: The applicant shall abide by the Parking plan, entitled “Parking Study & Parking Management Plan for Palo Alto Commons at 4075 El Camino Way in Palo Alto, California” uploaded to Accela on April 9, 2025 to the satisfaction of the Director of Planning and Development Services.

URBAN FORESTRY
The following conditions and/or standard Municipal Code requirements are provided for supplemental guidance, recommendation and/or best practices. Any applicable items shall be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc

27.Show outline of tree protection fencing in a boxed off dashed line for tree to be protected as specified in the consulting Arborist report.

28.The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR and/or Sheet T-1, and is subject to Item 14
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code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. If called for, project arborist approval must be obtained and documented in the monthly activity report sent to the City. When required, the Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City ([email protected]) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11.

29. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry.

30. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25.

31.The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival.

32. Prior to any site work, contractor must call Derek Sproat at 650-496-6985 to schedule an inspection of any required protective fencing. The fencing shall contain required warning sign and remain in place until final inspection of the project.

33. Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor.

SECTION 8. Term of Approval.

The approval shall be valid for a term consistent with the Development Schedule provided in PC Ordinance No. _____.
//
//
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INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
Director of Planning and
Development Services
PLANS AND DRAWINGS REFERENCED:

1. Those plans prepared by the applicant titled Palo Alto Commons, Wellquest Living, 4075 El Camino Way, Palo Alto, CA 94306, consisting of 79 pages, uploaded to Accela Citizen Access on October 4, 2024, except as modified to incorporate the conditions of approval in Section 6.

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ATTACHMENT D

ZONING COMPARISON TABLE
4075 El Camino Way, 23PLN-00202
Table 1: COMPARISON WITH CHAPTER 18.16 (CN DISTRICT) AND EXISTING PCs (5116 AND 3775)(1) Exclusively Non-residential Development Standards
Regulation Existing (PC 5116 and PC 3775) Proposed
Site Area, width and depth 110,642 sf
Irregularly shaped
110,642 sf
Irregularly shaped
Minimum Front Yard
(El Camino Way)

14.5 ft 14.5 ft
Rear Yard
(Closest to Wilkie Way)
10 ft 10 ft
Interior Side Yards N/A left
8 ft other sides
N/A left
8 ft other sides
6 ft at proposed addition
Street Side Yard
(W. Meadow Drive)
20 ft 20 ft
Build-to-lines Approximately 7.5 ft (2.3%)
built to front setback
Approx. 7.5 ft plus 2 corners
(8.2%) built to street side
setback
No change, complies
Max. Site Coverage 47.4% (52,470 sf) 48.5% (53,668 sf)
Max. Building Height 32 ft 5 in 32 ft 5 in
New addition max height 28 ft
Max. Floor Area Ratio (FAR) 0.43:1 (47,500 sf) Independent Senior Living (The Avant)

0.76:1 (83,511 sf) Assisted Living
(Palo Alto Commons)

1.18:1 (131,011 sf) total

0.43:1 (47,500 sf) Independent
Senior Living (The Avant)

0.82:1 (90,379 sf) Assisted
Living (Palo Alto Commons)

1.25:1 (137,906 sf) total
Daylight Plane for lot lines abutting one
or more residential zone districts other
than an RM-40 or PC Zone (2)
Complies Complies
(1) PC 3775 is for Palo Alto Commons, PC 5116 is for The Avant. (2) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question.

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Table 2: CONFORMANCE WITH CHAPTER 18.38.150

SPECIAL REQUIREMENTS FOR PC
Requirement when Adjacent to RE, R-1, R-2, RM or
applicable PC district
Proposed
(b) The maximum height within 150 feet of any RE, R-1, R- 2, RMD, RM, or applicable PC district shall be 35 feet
Complies, 32’6” height existing and to be
maintained.
(c) A minimum interior yard of 10 feet shall be required, and a solid wall or fence between 5 and 8 feet in height shall be constructed and maintained along the common
site line.

Complies, 10 foot setback for the
building, 7 ft fence on property line.
(d) A minimum street-side or front yard of 10 feet shall be required. For housing projects, the minimum yard
requirement shall be at least as restrictive as the yard requirements of the most restrictive residential district opposite such site line. The minimum yard shall be
planted and maintained as a landscaped screen, excluding areas required for access to the site.

Complies, change to front or streetside
setbacks are proposed.
(e) A maximum height established by a daylight plane
beginning at a height of ten feet at the applicable side or rear site lines and increasing at a slope of three feet for each six feet of distance from the side or rear site lines until intersecting the height limit otherwise established for the PC district; for housing projects, the daylight planes may be identical to the daylight plane
requirements of the most restrictive residential district abutting each such side or rear site line until intersecting the height limit otherwise established for the PC district. If the residential daylight plane, as allowed in this section, is selected, the setback regulations of the same adjoining residential district shall be imposed.

Complies. The addition fits within the R-1
side daylight plane that was established
for the existing PC.

Table 3: PARKING CONFORMANCE WITH ZONING CODE
Type Chapter 18.52
(For Reference Only)
Existing PC Proposed
Vehicle Parking 0.75 per Senior
Housing Unit (33
spaces)
1 per 2.5 beds Assisted
Living (57 spaces)
41 spaces
Independent Senior
Living (The Avant)
57 spaces
Assisted Living (Palo Alto
Commons)
41 spaces
Independent Senior
Living (The Avant)
57 spaces
Assisted Living (Palo
Alto Commons)
Complies
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Bicycle Parking None per Senior
Housing Unit
1 per 25 beds
Assisted Living (2 LT)
None 4 short term
2 long term
Loading Space 1 loading space for
10,000-99,999 sf.
2 required for 100,000-
199,999 sf.

None No change
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1 Kallas, Emily
From: Ellen Hartog <[email protected]>
Sent: Wednesday, April 23, 2025 8:18 AM
To: Council, City
Subject: The Commons
Attachments: The Commons.pdf
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Honorable Counsel Members,
Thank you for taking the time to read this email and attachment. I hope all the Counsel Members have had a chance to visit the existing condition of the property as it operates today and the effect it has on the adjacent neighbors or driven to the site and tried to park.

The new paint color blue matches the adjacent building, Goodwill's logo blue rainbow. I do not know of any more shocking effect on the neighborhood to see a three story blue structure looming over the one story neighbors.

The previous Conditioned of Approval are been ignored. People care about the neighborhood and this is a complete lack of respect to what was previously gone over by both parties over years of work and compromise is shocking and not neighborly. I also learned that the Commons has violated other sections of the Conditions:

1. Violation of Section 3, Subsection (a)(9):

This section requires the Palo Alto Commons to give preference for occupancy to Palo Alto residents and their families.

2. Violation of Section 3, Subsection (d):

This section requires annual reports of their occupancy/vacancy status, number and age of occupants, number of employees, number of residents and employees use of parking spaces, and copy of renewal license for residential care facility.

An complete Environmental Report should be done to ensure noise, light and air, traffic, parking study and more be done properly.

The visuals should be agreed to by the neighborhood similar to an HOA so that violations will be addressed and not put off by lack of enforcement. This is a huge impact on the neighborhood.

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2 The Commons does not keep their landscaping up toward West Meadow and neither does Goodwill. I walk to El Camino and the bushes collect garbage which is not a pleasant walk.

The Commons taking in Palo Alto residence priority. It may not be known when there is a waiting list.

There are many more factors and I have attached a letter addressing additional items of concern.

Respectfully,
Ellen Hartog
330 Victoria Place
Palo Alto, CA
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Honorable members of the Palo Alto City Counsel,
I am a long time resident of Charleston Meadows neighborhood. I recall when the Commons was developed and designed then to maximize its capacity. We had huge debates how the three story complex would impact the neighborhood and how it would impact adjacent properties. It took much comprising to agree on the building massing, giving up the twenty foot setback for open air space with staggered stories at a 10 foot setback. This solution was assured to the adjacent neighbors this would be the extent of building. Thus, we agreed on color, night sky, privacy, landscaping, number of units, number of parking spaces, along with agreements for reports of occupancy annually and commuter passes for employees. Palo Alto residences were to have a priority in occupancy as a benefit to the public as well as providing a monetary amount to Palo Alto.

Unfortunately, this has not been tracked and many promises have been broken along with the actual impact I have experienced personally. I have had to tolerate crowded street parking, blocked driveways, traffic congestion and no parking at the Goodwill – apparently, due to lack of parking at the Commons. Their garage seems to be closed by a gate.

Handicap access then not available to visitors. This is the current situation.

Their proposal goes against the compromises made in the past. Any further expansion would need to be outside the 20 foot setback as originally zoned or the ten foot compromised setback with a daylight plane of 3:6 for commercial zoning ordinance. I am completely opposed to this project expansion in the rear. All the work we did in the past was to ensure property owners their legal right to light and air.

Any expansion should and could be in the front or infill units at court yards as approved by the Planning and Transportation Commission.

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The massing of the proposed addition beyond is in direct opposition to the past COA agreement.

Any further expansion other than what the P&T Board approved creates impacts that are vast and frankly must be thoroughly studied.

The owner’s noise reports do not reflect all circumstances from train horn reflective noise off a three story wall or the additional emergency sirens at different times of day/night or weather condition, or night sky impact of three stories on neighbors. A complete landscaping study should be prepared to reduce the impacts and precise shadow study to include roofs are a must for any neighbor’s solar panels to work. This addition will only exasperate the existing problems, and will create new environmental issues which will need to be studied.

It is wise that this project be thorough investigated and have a proper EIR at any rate. There are so many issues not covered or taken into account.

This development does not add housing to the housing element. The Commons is a for profit corporation by a huge developer from out of state.

Seven single Units are approved now and nine single units more are being asked by the developer which could be relocated to the front. If as currently proposed, this expansion would impact negatively all the single family neighbors along the rear of property parallel to Wilkie Way. Ten single family homes will be far more impacted loosing privacy, air, light, view, noise increased and parking which today is already a huge problem for the neighborhood. More importantly homes values will be devalued by hundreds of thousands each. I am Item 14
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all for senior housing but should be built with consideration of the original Conditions of Approval and relocate the nine units or more to the front. The cost to relocate the units to the front of the property along El Camino Way or East Meadow, which is a real option, the owner says it’s cheaper in the rear. Their cost savings will be offset by the neighbor’s losses by 10 homes and more off-site parking demand. A complete EIR needs to be done.

Thank you for your time and consideration to please approve the expansion only as previously approved by the Planning and Transportation Commission.

Ellen Hartog
330 Victoria Place
Palo Alto, CA

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1 Kallas, Emily
From: Judy Noice <[email protected]>
Sent: Sunday, April 13, 2025 12:48 PM
To: Council, City
Subject: May 5 meeting re: Palo Alto Commons
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear City Council Members,

I am Judy Noice. My address is 4086 Ben Lomond Dr, Palo Alto, CA 94306. My mother is an Elite Care resident at Palo Alto Commons, where I visit her almost every day.

Because of travel, I am unable to attend the May 5 meeting in person. I wanted to let you know about an unpleasant
encounter I had with a person on Wilke Way when I was taking my wheelchair‐bound mother for a walk at the beginning of March of this year.

My mother and I were on the sidewalk behind Palo Alto Commons. My Palo Alto Commons visitor's badge was on my sweater. As I pushed my mother in her wheelchair, a person came out of the house next to us and asked me if I was from Palo Alto Commons and where did I park?

When I explained that I was a family
member of a resident, and I had parked along El Camino Way, the person told us Palo Alto Commons visitors clogged all the parking in the area. I replied that I tried to be respectful of the neighbors and park in the Palo Alto Commons parking lot as much as possible.

The person then asked if I had parked on the street because the underground parking was full. As I was clearly irritated by this interruption of our walk and was trying to move on, the person then backed up onto the yard and told us they really were more upset
about Palo Alto Commons staff parking on their street and nearby streets.

I told them I highly valued the talented and caring staff at Palo Alto Commons. I then said I hoped the neighbors and PACommons could figure out a solution to the parking issues for visitors and staff as PACommons provided important
senior housing in Palo Alto.

I was trying to maneuver my mother's wheelchair away when the person then started complaining about an addition to Palo Alto Commons taking away all the sunlight in their backyard. At this point, I repeated that I hoped the neighbors and Palo Alto Commons could find a solution to these issues and kept walking away.

Palo Alto Commons provides valuable housing and care for seniors in Palo Alto. Their families and staff are part of the neighborhood. I hope everyone can work together to find solutions for the issues rather than confronting people from Palo Alto Commons who are using public sidewalks for recreation.

Thank you for your time,
Judy Noice

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1 Kallas, Emily
From: Marty Douglas <[email protected]>
Sent: Monday, February 10, 2025 4:41 PM
To: Council, City; Burt, Patrick; Lythcott-Haims, Julie; Lauing, Ed; Stone, Greer; Veenker, Vicki; [email protected]; [email protected] Cc: Kevin Ji
Subject: PROJECT: Palo Alto Commons (4074 El Camino Way) CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear City Council members,

I have been following the development and expansion of the Palo Alto Commons ever since it was first built, many years ago. For 45 years, I have lived at 360 Maclane St, three (3) houses from where Wilkie Way dead ends into Maclane St. Our daughter’s best friend – from 1st through 12th grades ‐ lived on Wilkie Way, with her backyard now totally obscured from sunlight by the Palo Alto Commons. This facility’s continuous expansion, including now wishing to "build out" and fill‐in their stacked units, breaks the agreement they made when they 1st built it (having stacked units to allow more sun to residents' backyards). This blatant disregard of their previous agreement demonstrates their indifference for the impact they have on their neighbors. We can not have faith that they will adhere to any further agreements. For that reason alone you can not approve this expansion plan.

In addition, the impact they have on not providing sufficient parking for their staff and visitors has caused overflow to occur up and down Wilkie Way and even onto Maclane street where I live. Especially since they built the Avant independent building, staff and visitors park on Maclane St and sometimes even cut through Jacobs Court as a shortcut to the Avant. This overflow parking on our street has caused parking issues with tradesmen and workers trying to provide services to our home. (We recently had tree service & roofing repairs done as a condition of continuing our homeowners' insurance. The workers had difficulty finding adequate parking for their trucks near our home). Also, with the streets continuously filled with parked cars, the street sweeper can no longer adequately clean on Monday mornings. In the past, my neighbors and I would know to move any cars by Sunday evening so that on Monday mornings the street sweeper could clean (homeowners are paying for this service). Wilkie Way, with its many trees, leaves and seed pods falling onto the ground and clogging the drains, is particularly in need of street sweeping, which can not be done d/t so many parked cars from Palo Alto Commons.

Suggestions:
1) Please do not approve the current proposal to “build out” the building, but rather keep the “stacked” units.

Instead, either build up or into the interior.
2) Require, as a condition of approval, that the facility provide alternative parking sites or transportation options for staff. (More units means more staff, more external care providers, e.g. PT, OT, hospice, and more visitors)
3) Perhaps post “No Parking on Mondays for street sweeping” (include the range of months this is done ‐ October‐March?)

Thanking you in advance for your consideration of this issue, Marilyn Douglas
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2 360 Maclane St.

Palo Alto, CA 94306

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1 Kallas, Emily
From: Andie Reed <[email protected]>
Sent: Wednesday, December 11, 2024 11:58 AM
To: Planning Commission; Kallas, Emily
Subject: Palo Alto Commons
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Planning Commissioners,

This project asks for an amendment to a PC from 1989, which would in-fill what was intentionally left as air and sun space back in 1989. It is understandable that the residents living behind the project protest the block of buildings increasing in volume.

PCs are allowed exceptions to typical zoning rules for a few reasons, one of which is that they provide a public benefit. This proposed ordinance identifies the public benefit as “providing a safe place for Palo Alto residents and other seniors to age”. Although this is a much-needed service for any community, there is no benefit to the general public; in fact, it infringes on the residential rights next door by adding more traffic and taking away benefits previously enjoyed, like privacy and daylight. It is a commercial operation whose services can be bought at a pretty hefty price. Their donation to Avenidas is commendable, but what price will cover the nearby neighbors' daily privacy loss?
Please note that the parking analysis done by Hexagon is unreliable. Clearly one can always come up with some kind of metric that shows that parking is not problematic, based on nonsensical evidence. In this case, what the study shows is that the garage is underused (only ½ of parking places underground are typically used per this study). If the facility had no parking issue, visitors and employees wouldn’t be parking on Wilkie Way.

Although with more units there will be more convalescents and thus more attendants and visitors, there is no proposed increase in parking. The Wilkie Way residents’ experience as evidenced by their letters and speeches, as well as friends I know who visit there often, testify that Wilkie Way is already used for overflow parking. And that's before the expansion.

The draft TDM (traffic demand management plan) included in the packet feels generic; checking boxes and using soft terms like “may provide for penalties”. My neighborhood’s experience with TDMs is that we got left in the dark as the applicant-produced TDM was signed and set in stone without the neighbors’ knowledge and input
, and discussions regarding seeing how it goes
and making adjustments along the way were disregarded.

I would highly recommend the PTC require neighbor input into the TDM before it is finalized. The TDM should include methods to track parking in the neighborhood (instead of only in Palo Alto Commons’ parking garage, per Hexagon). Requiring employees to park underground as well as directing visitors to those 55 spots. Sending overflow to Avant’s additional 42 spots needs to be specified. Monitoring and reporting should be provided by a Item 14
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2 third party, with review by the neighbors, and measures for enforcement or penalties determined and put in the document.

TDMs can end up being words gathered to solve problems near the end of the project’s approval process that end up not holding water but get institutionalized without neighbors' input. Before finalizing this document, please make the document reflect neighbors’ input and allow for continual review.

Thank you,
Andie Reed
Melville Ave

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1 Kallas, Emily
From: Lily Lee <[email protected]>
Sent: Tuesday, December 10, 2024 1:31 AM
To: Kallas, Emily; Planning Commission
Cc: [email protected]
Subject: Comments on 4075 El Camino Way project
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Commissioners and Emily,

Thank you for the opportunity to comment on the proposed expansion at 4075 El Camino Way. I have lived at 4080 Wilkie Way since 2003. Thank you to so many of the Commissioners for visiting our backyards to see for yourselves the impacts of the current structure so you can better understand the potential effects of the proposed expansion. And I would like to thank Emily for answering so many of my questions.

As I said before, I support senior assisted living at the 7 proposed interior new units. However, I remain concerned about the 9 external units facing Wilkie Way backyards. The 9/2024 Plans show that behind our backyard at 4080 Wilkie Way, 3 points are currently about 18 feet from our back fence. But the new development would add a new first floor room 10’1” from our fence and a 2nd floor dwelling unit 12’7” ft away, both nearly twice as close. I see another neighbor will have a unit 10’9” from her family’s back fence.

We heard at the 6/12 PTC meeting that new construction of this type should follow a 20 ft set back with a 45 degree daylight plane. Multiple commissioners asked the City’s counsel if that meant that the 20 foot set back should apply to this project. At first she said yes, but the planning staff then said that the City Council has occasionally approved PCs that were inconsistent with relevant municipal code 18.38.150 (see pages 118-122 of the transcript). Thank you for motioning for the ARB to “consider the feasibility, and relative benefits to the residents of Wilkie Way, of increasing the setback for newly constructed units to 20 ft to meet 18.38.150.”

City staff explained that in response,“The applicant confirmed that it is not possible to reduce the second floor units in a way that would allow for a 20 ft setback. There needs to be structure under the proposed third floor units, but a 20 ft setback would not leave enough space for the 2nd floor additions to be usable as units. The ARB did not comment on the applicant’s justification of the setback. However, they did comment that the three story building with a 10 ft setback and the 45-degree angle daylight plane does meet the zoning requirements and is appropriate next to a one-story residential context. . . . The City Attorney does not determine if a proposed discretionary project is contextually compatible with a neighborhood, that is determined by the ARB.”

The above response presumes only one version of the project would be “feasible.” However, the applicant could still explore alternative "feasible" options, e.g. reduce the size, configuration, or quantity of second floor units; reduce the size, configuration, or quantity of 3rd floor units to enable 2nd floor units with a 20 foot setback to support those; or instead of creating two 1st floor rooms with 10’1” and 10’9” setbacks, use new smaller rooms on the 2nd floor to serve those functions. If indeed the 20 foot setback is not required to apply, then could 2nd floor units be set back by a distance of, say, 18 feet, with perhaps a reduction in the number and/or size of units, and still support the 3rd floor units? I do not see evidence that the ARB, the applicant, or staff attempted to meaningfully address the PTC’s motion. I recommend that the PTC return this motion to the ARB for further followup and consult with the City Attorney to clarify legal ambiguity.

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2 In addition, we note the applicant sometimes does not follow through on prior commitments. For example, for many years, the applicant failed to follow City requirements to submit a TDM Plan and annual reports about occupancy. The applicant told the PTC in June that it had implemented a new parking plan to divert more parking to its underground garage, but two PTC Commissioners, many employees, and visitor told us that onsite parking is unavailable and that Palo Alto Commons told them to park in the neighborhood. I am compiling a list of inconsistencies in the applicant's actions that I will send separately, for the record, to document a fact pattern in detail. Although we support more senior assisted living, alternative providers with a better track record may be better partners for the City.

Parking is one example where the applicant has a mixed record, and I support parking comments already sent by Kai Porter and many other neighbors. I agree with their recommendations that the PTC put in place up front enforceable requirements in its TDM Plan and PC Ordinance to the applicant, e.g. 3rd party confidential surveys of staff and workers, demonstrated parking compliance before approval of TDM, monthly reports to the PTC or ARB, specific dollar amount penalties for noncompliance with an escalation schedule, and a mechanism to enable 3rd party lawsuits by residents.

Due to the contradictory legal interpretations in the record and due to the applicant’s history of inconsistency and noncompliance, neighbors representing multiple homes, including ours, have contributed funds to hiring legal counsel.

I recommend to the PTC that you ask the applicant for new plans to address neighbors’ concerns more robustly and a revised TDM to address well-established problems before approving this project to move to the City Council. If you would like to visit my backyard again or talk to me further, please contact me at 650-815-9749.

Thank you for your attention.

Sincerely,

Lily Lee

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1 Kallas, Emily
From: Lily Lee <[email protected]>
Sent: Tuesday, December 10, 2024 2:46 PM
To: Kallas, Emily
Subject: Re: CEQA question
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Thank you, Emily!

Sent from Yahoo Mail for iPhone

On Tuesday, December 10, 2024, 11:29 AM, Kallas, Emily <[email protected]> wrote:

Hi Lily,

Public services in the CEQA checklist refer mainly to police and fire access. Facilities refer to schools, parks, and other recreation such as libraries. 16 additional assisted living units, at an existing facility, would not affect city‐wide emergency response times or access to city facilities in a manner that is not
accounted for in the Comprehensive Plan.

Thanks,
Emily

Emily Kallas, AICP
Senior Planner
Planning and Development Services Department
(650) 617‐3125 | [email protected]
www.cityofpaloalto.org

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2 Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped

From: Lily Lee <[email protected]>
Sent: Tuesday, December 10, 2024 11:03 AM
To: Kallas, Emily <[email protected]>
Subject: Re: CEQA question

CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Thank you, Emily,

I did read the memo. I was wondering about how this quote applies or does not apply to this project?

(A) The project is in an area where all public services and facilities are available to allow for maximum development permissible in the General Plan

On Tuesday, December 10, 2024, 8:47 AM, Kallas, Emily
<[email protected]> wrote:

Hi Lily,

I appreciate the invitation, but unfortunately I do not have time in my schedule to accommodate it. Many neighbors have shared pictures with us throughout the process, and I am confident that between the photos and many years reviewing development projects that I have a good understanding of your backyard conditions.

CEQA section 15301 (e)(2) applies as explained in the CE document:

Although the proposed project would increase the existing number of units and building area onsite, the new units are for assisted living and Item 14
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3 residents of these units would not generate new daily vehicular trips or otherwise result in notable changes to the ongoing use of the facility.

The proposed addition represents a negligible increase in use (the number of units increases by 13 percent) and minor alteration of the existing facility (total building area increases by eight percent) compared to existing conditions. Only two new employees would be required to operate the expanded assisted living facility, representing a three percent increase in employees compared to existing conditions.

This qualifies as a negligible expansion for the purpose of CEQA.

The concerns about parking are being
responded to as much as
possible. The Zoning Code requires .75 spaces per unit for Assisted Living use and Palo Alto Commons is providing that for the proposed total number of units, so we do not have an objective basis to state there is not sufficient parking. The Transportation Demand Management Plan (TDM) will help manage and reduce staff trips, and other changes have been made such as installing a keycard reader to the gated parking, to improve access.

Thanks,
Emily

Emily Kallas, AICP
Senior Planner
Planning and Development Services Department
(650) 617‐3125 | [email protected]
www.cityofpaloalto.org

Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped

From: Lily Lee <[email protected]>
Sent: Monday, December 9, 2024 6:56 PM
To: Kallas, Emily <[email protected]>
Cc: Kevin Ji <[email protected]>
Subject: CEQA question

CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Hi Emily,

Thank you again for answering our earlier questions. I appreciate it. And I know you are very busy, but I would stilll like to invite you to my backyard at 4080 Wilkie Way at other days when you are more free to leave the office. If you are nearby, even if we did not make a formal set time in advance, just call my cell at 650-815- Item 14
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4 9749. You are very welcome to visit. I am sure other neighbors would welcome you too.

I read the CEQA memo, and I have a question. I found online in CEQA examples of projects that have “negligible or no expansion of use.” It includes these scenarios:

“(e) Additions to existing structures provided that the addition will not result in an increase of more than:
(1) 50 percent of the floor area of the structures
before the addition, or 2,500 square feet, whichever is less; or
(2) 10,000 square feet if:
(A) The project is in an area where all public
services and facilities are available to allow for
maximum development permissible in the
General Plan . . . “

(Source: https://www.law.cornell.edu/regulations/california/14- CCR-15301#:~:text=Class 1 consists of the,of existing or former use.)

The proposed project would total 6,865 square feet, which exceeds the limit in (e)(1) above. Regarding (e)(2)(A), can you explain how that situation might apply or not in this project?

You have heard many concerns that public parking is not sufficient to allow for the current use, let alone an expanded use. Is that relevant?

And this project includes a 13% expansion of number of units, which is certainly an expansion of use.

I appreciate your help understanding this topic. Thank you!

Lily

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1 Kallas, Emily
From: Kevin Ji <[email protected]>
Sent: Tuesday, December 10, 2024 12:09 AM
To: Kallas, Emily; Planning Commission
Subject: 12/11/24 Presentation
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Hi Emily,

Per your instruction, I've attached the presentation I'd like your help to display at the 12/11 PTC meeting 24 or more hours in advance.

Please let me know if you have any questions.

Sincerely,

Kevin
To help protect your
pri va cy, M icr os of t Of f i ce prevented au tomatic download of t his pict ure from the Internet.

PTC 12_11.pptx
To help protect your pri va cy, M icr os of t Of f i ce prevented au tomatic download of t his pict ure from the Internet.

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1 Kallas, Emily
From: Mona He <[email protected]>
Sent: Tuesday, December 10, 2024 12:09 AM
To: Planning Commission; Kallas, Emily
Cc: Kevin Ji; JamesYahoo Porter; Lily Lee; Jenny Chen; Jennie Chen; Ellen Hartog (wilkie Neighbor); Grace (Yan Feng) Wang; [email protected]; Jayashree Divekar 4050 Wilkie; Shashank Divekar 4050 Wilkie Neighbor; [email protected]; James Cham; [email protected]; Jagdish Pamnani; Marty Douglas (neighbor); Natacha Telusca; Tom Huibin Tang; Zhang Fion; [email protected]; Mona He
Subject:

Opposing Palo Alto Commons proposed expansion
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear PTC members and Emily,

1. Discrepancies on staff report;
1). Dayline plane is never in compliance. I found out the Dayline plane is always in question and it needs to be correctly stated in the staff report to prevent further confusion.

.........

The proposed is NOT in compliance with current Palo Alto municipal code 18.38.150(e). Staff in the past and continues to mislead the PTC on this specific daylight plane code violation despite neighbors have discussed with staff and pointed out numerous times during the past PTCs, ARBs and in person meetings with staff. The daylight plane currently used on the proposed expansion is 10' setback with 45 degrees height increase. However the current PC daylight plane for PC is

18.38.150(e). It is the maximum height established by a daylight plane beginninag at a height of ten feet at the applicable side or rear site lines and increasing at a slope of three feet for each six feet of distance from the side or rear site lines until intersecting the height limit otherwise established for the PC district.

2). According PC 5116, there is 38 underground parking spaces and 3 surface parking spaces, plus 55 total underground and surface parking spaces. it is clearly discrepancies from PC 5116. There are only 55 parking spaces for Palo Alto Commons NOT 57!!!

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2 2. Multiple PC 5116/PC 3775 violations
Palo Alto Commons has currently in violation of its PC 3775 conditions and they need to bring its conditions in compliance before seeking any additional proposed project to be considered for approval. 1). PC 3775 section 3 (b)15.a; (b)15.b; (b) 15.c
" a. Maintenance in a central location of timely information regarding commute alternatives and distribution of same to all new employees. The information should include all relevant transit system timetables, information about ridesharing from RIDES for Bay Area Comauters, Inc. and County Transit, information on the buildings' and the Cityt's bicycle facilities. b. A means to provide or reimburse employees for transit passes. c. Assurance that the property manager will provide each employee with the RIDES car pool match list application form and information package at least once each year."
I talked to the Commons employee at the beginning of November who was still parking in front of my house. She said she had never received any information regarding the transit and carpool information. And they still were told not to park in the underground parking garage and continue on parking in the neighborhood.

2). PC 3775 section 3 (d)Annual Report
" The management shall provide the City
with an annual project report with the following information:

1. Occupancy/Vacancy status

2. Number and age of occupants

3. Number of employees

4. Number of residents and employees who use parking spaces

5. Copy of Renewal License for. Residential Care Facility " Wilkie neighbors have been repeatedly asking city staff and Palo Alto commons regarding the annual information. And we were told there has never been such information ever submitted to the city and Commons has never composed that information for the public. Commons

3.Object to Proposed Categorical Exemption of Project under CEQA.

This proposed expansion cannot not be granted an exception from CEQA. CEQA report is required for this project. Please see Grace and my attorney's letter emailed to PTC and Emily at 4:19pm on Dec 11, 2024 for the detailed legal reasons of objection.

Best regards,

Mona

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1 Kallas, Emily
From: Kevin Ji <[email protected]>
Sent: Tuesday, December 10, 2024 12:12 AM
To: Planning Commission
Cc: Kallas, Emily; [email protected]; Gennady Sheyner; [email protected] Subject: Anonymous Letter
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Planning Commission,

I was asked to share this letter on behalf of someone who would like to remain anonymous.

‐‐
December 8, 2024

I often visit a patient at Palo Alto Commons. I am submitting this anonymously because the patient is concerned that this letter could affect how they are
treated by staff at the facility.

Only once can I ever remember finding a place to park in the visitor lot for Palo Alto Commons. Sometimes a van belonging to the Palo Alto Commons is parked in one or more of those spaces. Another visitor space is reserved for future
residents, and thus not intended for those visiting current patients.

Construction materials or other obstructions sometimes occupy other spaces.

And then there are always cars I presume belong to other visitors in what few spaces remain.

Not finding a spot in the visitor lot, I then have to exit back onto El Camino Way. There are never any other free places to park anywhere along El Camino Way because you can't park in many stretches and the rest are already filled with cars, probably belonging to customers of Goodwill. The same is true for West Meadow, so I end up parking on Wilkie Way. I heard that neighbors on Wilkie are protesting being used as the effective extension parking lot for Palo Alto Commons and I am sorry that I contribute to their problem. I reached out to them and am grateful that they will submit this letter.

Please note that there are no handicapped parking spaces in the Palo Alto Commons visitor lot and this adds a further problem. When I brought with me a visitor who is mobility‐impaired, I had to drop that person off, park on Wilkie, and then literally run back to attend to them.

There are a couple of signs in the Palo Alto Commons visitor lot indicating one can call for parking assistance. However, to place a call safely requires me to first park somewhere. Since there's no place to park in the visitor lot, that means I first have to park on Wilkie. Once I've done that, there's no point in calling. So the signs don't help at all.

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2 I'm sure the staff at Palo Alto Commons want their patients to receive visitors. But by having seriously inadequate visitor parking and no handicap spaces, they are making it much harder for me and others to visit.

Fewer visits is detrimental to the health and well‐being of those living at the facility.

I urge the city to insist that Palo Alto Common's visitor parking be expanded to meet its present needs so that I and others no longer need to park on Wilkie. Furthermore, if the number of rooms at Palo Alto Commons is to increase, so should the visitor parking accordingly.

Sincerely,

Name Withheld
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1 Kallas, Emily
From: Nia Porter <[email protected]>
Sent: Monday, December 9, 2024 1:01 AM
To: Kallas, Emily; Planning Commission
Subject: Comment about project at 4075 El Camino Way
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Commissioners and City staff,

I want to comment on the senior housing behind my backyard.. I have lived at 4080 Wilkie Way since 2007. Growing up, whenever I looked out of my back window or went into my backyard, I saw a huge building with many windows, and I always felt as if people could be watching me from above. The building is 10 ft from my back fence. On the 2nd floor is a common space where people go back and forth all day and night. If I could see them, then they must also be able to see me.

Expanding the building would make the situation even worse. To help make up for this problem for neighbors, it could be good to give more benefits to the community. I do community service volunteer teaching at nearby parks and at the East Palo Alto Arts Center. And my grandma used to live at an assisted living facility. So I wonder if Palo Alto Commons could look into ways to help seniors and the rest of the city together?

I looked at Attachment G of the staff report for the June PTC meeting. I talked at that meeting. The main public benefit they talk about is housing for seniors. At a recent project at Ellsworth and Middlefield, the PTC said that housing is not by itself considered a public benefit. If public benefit is not that high, then can this project still use Planned Community zoning?

Also, I know this project will give in lieu fees to the City. Those are required. But to make up for harming the neighbors, maybe Palo Alto Commons should give more public benefits beyond that. For example, I did see that previously Palo Alto Commons gave a $100,000 to Avenidas to help low-income seniors.

That’s great. But they are not doing anything like that this time. In addition, sometimes new development projects give other benefits, like improving nearby parks, lighting, grants to nonprofits nearby or other community programs. I know many residents of Palo Alto Commons may not be able to get around as easily as they used to. But I still sometimes see them walking around our house or being pushed in their wheelchairs enjoying sunshine, flowers, and talking to the neighbors. Maybe they enjoy visiting Robles and Ventura Parks. Could Palo Alto Commons help make the nearby parks nicer or help take care of them? Then that helps their own seniors plus the neighbors.

I also wanted to talk about landscaping. At the October 5, 1987, City Council meeting, “Bob Peterson, Landscape Architect, said the planting along the rear property line was the major concern of the neighbors. The plans showed a predominance of evergreen, moderately fast-growing trees.” But I did not remember seeing many trees behind my backyard planted by Palo Alto Commons.

At the 7/18/2024 ARB meeting, the meeting minutes said, “Board Member Hirsch stated that landscaping is critical for privacy. Board Member Hirsch thought it was possible to put some landscaping adjacent to Item 14
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2 the fence line to create a higher barrier for privacy on the Wilkie side but not too high to increase shadowing on the neighbors’ properties but the applicant needs to coordinate with each of the affected residents.”

Palo Alto Commons said at the 7/18 ARB meeting it would match the landscaping to what individual neighbors want. At the 8/2024 meeting with the landscape architect and the neighbors at Palo Alto Commons they said the same thing.

Our house has the largest number of apartments that are already 10 ft away from our back fence, so our backyard is almost totally shaded already. So new trees will not make it worse. Our family and other neighbors told Palo Alto Commons and the City in person and in writing that we want evergreen instead of deciduous trees:

1. 4080 Wilkie - Lily Lee and James Porter

2. 4076 Wilkie - Yang Sze Choo and James Cham

3. 4072 Wilkie - Kevin Ji & Jenny Chan

4. 4060 Wilkie - Yanfeng Wang

I’m glad the landscape architect added more trees to the plan presented in October to ARB. But why did he make all the trees deciduous? The staff report said, “While normally evergreen trees are preferred for privacy, deciduous trees are proposed at the request of neighbors who would like to minimize additional shade in their backyards.." Palo Alto Commons said at the October ARB meeting that the “majority” of the neighbors want deciduous trees because they don’t want extra new shade. So Palo Alto Commons made all the new trees deciduous. But if 8 homes are behind Palo Alto Commons, and I know at least 4 families want evergreen, then even if all the other 4 neighbors want deciduous, 4 out of 8 is not a majority. I think it should be easy to plant evergreen trees behind families that like those and plant deciduous trees behind families that like those.

In addition, my family said at the 7/18/2024 ARB meeting that we like green paint that blends into the leaves. Is it too late to make the back green?

These seem like easy things to do to make the new apartments look nicer for the neighbors. It would be great to talk about these things at the Wednesday meeting and then see what Palo Alto Commons can do about it and report back at the next PTC meeting.

Thank you for reading my comments.

Sincerely,

Nia Porter

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1 Kallas, Emily
From: Shashank Divekar <[email protected]>
Sent: Monday, December 9, 2024 2:15 PM
To: Kallas, Emily; Planning Commission
Cc: Jayashree Divekar
Subject: Objection to expansion of Palo Alto Commons at 4075 El Camino Way CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Planning and Transportation Commission,

Thank you for the opportunity to comment on the proposed project to expand the Palo Alto Commons at 4075 El Camino Way (“project”). Myself and Jayashree cc:ed here are residents of 4054 Wilkie Way and have our backyard sharing the fence directly with Palo Alto Commons.

Assisted living services are important community service. We are hoping that at least 7 units inside the 'project' will not cause physical disruption to the Wilkie neighbors (although they will increase parking/transportation impacts). However, for the remaining 'external' 9 units that will increase into two and three story additions to the existing buildings, we voice our objections as follows:

Parking: Visitors and service providers for Palo Alto Commons residents already often park in the nearby residential streets. Even though Palo Alto Commons stated it implemented improvements in the summer, I still see congested parking, and it will get worse when parking is removed from El Camino Real. In fact, even the Palo Alto Commons bus parks on Wilkie. Please make the new Transportation Demand Management (TDM) Plan stronger and include enforcement for violations. Although the ARB suggested setting up a parking permit system, that would require residents to pay for permits, and it would allow Palo Alto Commons to buy its own parking permits too. So it is unclear if that would be helpful..

Daylight Plane: Given that this is a commercial project, the daylight plane for PCs that are commercial should be 10 ft setback, with a 30/60 angle daylight plane. However, even if we use the residential setback, which is 20 ft setback and 45 degree angle, every new external proposed unit against the Wilkie Way side would violate these limits.

Reduced Natural Sunlight: This imposing building would reduce the amount of natural sunlight we get. This is in clear violation of the required “low-density residential transition” and policies in the Palo Alto Comprehensive Plan such as “L6.8: Preserve exposure to natural light for single-family residences” Please consider reducing the number, size, and/or placement of units in a manner that reduces further shading.

Low-Density Residential Transitions: Regardless of whether this project is considered commercial or residential, it is subject to low-density residential transitions. These transitions (such as stepbacks) are part of the municipal code in general and are also specifically in the current Planned Community Zoning that currently applies. These setbacks were also promised to the neighbors in 1986 when the project was first built. Please maintain these stepbacks.

Loss of Privacy : The imposing structure with added units will have significant impact on our family privacy with new residents having clear view of our house and yard. Palo Alto is a treasured city for many reasons, this being one of them, and we would like to keep it that way.

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2 Loss of house maket value: There will be loss of market value to single family residences on Wilkie Way:

With increased units and density resulting by expansion of Palo Alto Commons, we as owners will suffer loss of market value to our residences.

Thank you for considering my comments.

Sincerely,

Shashank Divekar

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1 Kallas, Emily
From: James Porter <[email protected]>
Sent: Monday, December 9, 2024 4:07 PM
To: Planning Commission; Kallas, Emily
Subject: Comments on 4075 El Camino Way (Palo Alto Commons Expansion) 12/11 PTC Meeting CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Commissioners and City Staff,

Thank you for the opportunity to comment on the proposed expansion at Palo Alto Commons. I have lived at 4080 Wilkie Way for 21 years with the commons as our backyard neighbor.

I support expansion of senior assisted living opportunities. I’m glad that Palo Alto Commons, the “applicant,” has proposed 7 interior new units, and I support that in spite of the parking impacts. However, the proposal for 9 additional external units exacerbates existing massing and visual impact from our family room, bedroom and backyard. More workers and visitors exacerbate existing parking congestion, which will only get worse when parking is removed from El Camino Real. We appreciate that the applicant has improved landscaping and window plans to address privacy concerns. However, even after concerns expressed by the PTC 6/12/2024 with regard to massing, closeness of the existing Palo Commons units to Wilkie Way backyards, and uncertainty on daylight plane and setbacks there have been no proposals that would reduce the quantity, size, or placement of the 9 exterior units.

In addition, we have been confused about various legal topics during the PTC and ARB meetings, including the setbacks and the daylight plane, where we heard inconsistent messages, including from the City’s counsel. We have heard that the PC could overwrite itself or existing regulation. The original building was built with 10 feet setback at 45 degree. We have heard that the correct up to date 20 foot setback for commercial building can not be applied because it would put the rest of the building out of compliance. But shouldn’t there be flexibility there given PC flexibility?

Regardless of the legal requirements, I ask the PTC to consider that the neighbors have already endured a 10 foot setback, and if new construction should follow a 20 foot setback, then out of human sense of fairness, it feels like the wrong direction to allow even more new construction with a 12.5 foot setback. I am not an architect, but I understand that all new 3
rd story units would have a 20 foot set back. I was told that without the 2nd floor units for support, the 3rd floor units could not be built. I don’t understand that just based on simple geometry. Please help me understand why the project could not still go forward with fewer external units so that it stays within a 20 foot set back? I thought the PTC asked the ARB to discuss what the plans would look like with a 20 foot set back. But the ARB just said that the 10 foot setback was ok. I don’t think the PTC should approve this project without getting the answer to the questions they asked in June to the ARB about potential compromise options that reduce the impact of the 9 external units. It would be good to hear more from the ARB and the applicant’s architect.

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2 I also have concerns about the parking, so I hope that the PTC will put in specific legal requirements to hold Palo Alto Commons accountable to show that they can do what they promised to reduce parking congestion before you approve this project. I also think you should put in enforcement requirements to make sure they keep their promises after they get your approval. If they don’t do what they promise, they should get more penalties. Please be specific about continuing to check yourself (as you have already).

In conclusion, thank you for listening to our recommendation to continue to discuss the proposed project especially to explore further reductions in the number, size, and placement of proposed new external 9 units, especially the 3 2nd floor units with 12.5 foot setbacks.

Thank you,

James Porter

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J. Randall Toch
408.947.2492
[email protected]
Silicon Valley Office | 55 South Market Street, Suite 900, San Jose, California 95113-2324 phone 408.287.9501 fax 408.287.2583 www.hogefenton.com December 9, 2024
Via E-Mail only ([email protected]) H
onorable Members of the City of Palo Alto
Planning and Transportation Commission
250 Hamilton Ave.

Palo Alto, CA 94301
Re: Meeting Date: December 11, 2024
Agenda Item: 2
Project Description: Proposed Zoning Amendment and
Architectural Approval for Palo Alto Commons
Subject Property: 4075 El Camino Way, Palo Alto, California Report #: 2410-3649
Our Clients: Mona He and Grace (Yan Feng) Wang
Objection to Proposed Categorical Exemption of Project under CEQA Dear Honorable Members of the City of Palo Alto Planning and Transportation Commission:

This law firm represents Mona He and Grace (Yan Feng) Wang who own single story residences on Wilke Way. The residences are adjacent to the real property situated at 4075 El Camino Way, Palo Alto (the “ Subject Property ”). For the reasons stated in this letter, Ms. He and Ms. Wang object to the proposed categorical exemption of the project under CEQA, and oppose the project itself in its current form.

The project under consideration by the Commission as Agenda Item No. 2 is defined in the staff report for the December 11, 2024 Planning & Transportation Commission Meeting (the “Staff Report”) under the heading “PROJECT DESCRIPTION” as follows: “an amendment to the existing PC Zone District (PC-5116) . . .” (the “Project”).1 I. The Project is a proposed Zoning Amendment which would alter multiple aspects of the City of Palo Alto Municipal Code. (It is not a mere application for a permit to allow minor physical alterations to an existing facility.) The California Environmental Quality Act Requires Environmental Review of Proposed Zoning Amendments. 1 See City of Palo Alto Planning & Transportation Commission Staff Report, Item No. 2, Page 2 of 10 (Packet Pg. 11)
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Honorable Members of the City of Palo Alto Planning
and Transportation Commission
December 9, 2024

Page 2 ends

Palo Alto City CouncilMay 5, 2025

Palo Alto City Council
May 5, 2025